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Tuesday, November 17, 2009

How to Spot Hot Penny Stock Pick Scams

By Malcolm Torren

In every business, there is always two sides to the same story. Much like in penny stock investment, you have to consider the pros and cons before you decide to invest. If you receive a phone call that engages you to buy a hot penny stock pick of the day, you have a choice of whether to be skeptical of embrace the offer. It's your choice.

Other approaches of tempting offers in penny stocks are unexpected emails and even professionally looking websites. They are most often well designed with words that can be very persuasive. Phrases like hot penny stocks, best penny stocks, hot penny stock pick - and the list goes on, are often used. If you don't know much about the trade, there's a higher chance of you embracing for the deal. If you know too well from legit experience, you know this is another one of those misleading offers.

The first question is how can you sense if there's something fishy? Consequently, the next question is what can you do with it? To answer the first question, read some of the common symptoms below:

- It's a scam if they promise you very high returns or they guarantee your success. How else can they convince you? If a website or an email says this penny stock is the real thing, beware. If you read a line that claims that the method used is a tested and proven strategy, beware. That is all it is, a strategy. Seemingly flawless guarantees like these can get you in trouble fast. Beware.

- Beware of hasty offers and rock-bottom prices. They lure you into falling for the trap by declaring cheap stocks that are assumed you can afford. Then they tell you to buy them the soonest time possible. Read closely on their message. Hot penny stock pick offers are good but only if you trust the person offering it. The funny thing is you never knew these people or never heard of their names. Isn't this fishy enough? Beware.

- Don't believe the XYZ Company Penny Stock Success Story. If you happen to come across claims of how today's huge companies started out with penny stock shares, don't fall for this trap. This approach of fraud is often used and in fact overused. Beware.

How do you go about penny stock offers which are obviously scams? It's very simple. Don't be gullible. Verify the authenticity. Check their records. Ask for it if you can then have it checked with your stock broker. Make sure these people have a legitimate state and federal license to do business with you. The hot penny stock pick strategy is one of their favorite conduits. Always double check on the companies that they are claiming if it's registered.

As you can see, it all boils down to you making the final decision. Before you embrace an offer, make sure it's not something that's too good to be true. Case in point in the penny stock market business, success doesn't happen in a silver platter. So the next time you get a hot penny stock pick offer, just say heads or tails? It's your pick - but beware. - 23159

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Commodities Benchmark Helps Investors Profit More From The Market

By Selwyn Petrov

An commodities benchmark is an index that lets traders compare their own trades to the others available around the market. These standards are a guide to traders. When your investment is doing very well compared to most other standards of investments, then you know you have a made a good choice. The better your investment is doing compared to the market as a whole, the better your investment will be for your portfolio.

The primary goal for those choosing a commodity benchmark is to find an index that is relevant to your investment. You want to measure your investment compared to other investments that are designed for similar purposes.

If you want to know how your investments are doing relative to the entire market, then you will want to look into the CRB Index. This is great because it gives you the averages of many commodities available to you. By knowing how you are doing relative to this index, you will know if you are in a good or bad investment. If you are doing better than this index, then you will know you are in a highly profitable commodity investment.

Another large index used to compare investments is the DJ AIG Commodities Index. This is a good indicator of how the major world commodities are performing. You will know if you are invested in a commodity that is moving in the same direction as the whole economy. When you compare your commodities to this index, you will be able to know how you are doing compared to the most traded commodities in the world. This can always be helpful in guiding you towards the right investment.

The primary goal of a commodity benchmark is to compare your investment to relevant investments. If you are invested in softs, or if you are invested in industrial metals, you want to compare your investments to similar portfolios. If you hold a portfolio that is primarily made up of crude oil ETF's, and you compare your portfolio to cocoa, then you will find that your portfolio may be performing drastically better than the average of your benchmark investments.

You want to make sure that your index has similar goals and strategies for the investors who purchase them. If you are looking for high growth, then you should compare your investment to high growth indexes.

When investing in commodities, you will want your investment index to be tracking commodities. You may also want to compare your investment to the large indexes, because this will let you know how good the investment is doing relative to all of the investments available on the market.

The best option for a commodities benchmark is a commodities index. By finding an index that tracks commodity values, you will be seeing how the market of commodities is moving relative to your own investments. This is a great way to measure how successful your commodities investments are overall. When using these benchmarks, your goal is aimed at beating the market. You always want your investments exceed the profits of the other options available to you in the open market. - 23159

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Do You Understand The Hidden Truths To Trading For A Living

By Peter Skonctuedt

It is surprising just how many people keep asking expert traders what the key to succeeding with trading for a living is. As a matter of fact, people that are sick of their jobs and having to answer to bosses are the ones that are the most in need of help with learning how to earn money from trading. This is understandable because if you are serious about making a lot of money then working at a regular job represents the worst option and in addition it is also a very inefficient way of making money.

When you trade to make a living you will not be constrained by factors such as time because you can spend as much or as little time in trading as you desire. What's more, the return on your time and effort is quantifiable and you will also get good value for your efforts. And, by trading you are also helping to inject liquidity in the markets which is a valuable thing as well.

When it comes to understanding how to trade to make a living you need to also understand that sometimes you might lose money and other times you will make money. Even the most experienced traders lose money; so, it would be wrong to expect that you will always succeed in making profits year in and year out.

This is why if you come across an advertisement claiming to help people make money from trading in stocks you should fight shy of these ads. These people don't actually trade for themselves because they know the odds are against them and so will recommend that others do the trading and this is why they will willingly offer to teach them how to make trades. The simple truth is that only a few handful and expert people can succeed in making money out of trading in the stock market; most others will fail.

This is because trading is an activity that is contrary to our nature and in addition you will fail also because trading seems to be a means to achieve quick and easy success but in reality it is neither easy nor the best way to make a living. What's more, there are many reasons why people wish to trade for a living including because they get to be their own bosses, and they can trade from home and also from anywhere in the whole wide world. In addition, to trade in stock also does not require that the trader has to employ anyone and it also does not mean needing to make anything.

Even if you do behave like a would-be Olympic champion there is still no guarantee that you will succeed because even a single mistake at any time can put paid to all your efforts and causes a huge loss of money to you.

There are fortunately a few systems that have been developed by people that have indeed succeeded in earning a good amount of money from trading. If you spend a little money you can make use of such solutions that help you understand market forces (to a certain degree) and in this way you can learn how to make a profitable deal.

Most people that have succeeded in trading for a living have realized that they do not need to monitor the market on an hourly basis. What is required is managing their trades for between ten to sixty minutes on a daily basis. But remember what an old adage says and that is that you may be able to do anything in your life; just don't attempt to do everything because that is a surefire means of inviting failure instead of success. - 23159

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Shorting Stocks Explained

By Ahmad Hassam

Many beginning investors get confused when they realize that it is possible to make money when the stock falls in price. In practice, shorting a stock is as easy as buying stocks once you get hang of it. When the market is falling, investors sell short a stock with the goal of profiting from the fall in the price of that stock.

Short selling is confusing for new traders. It shouldn't be. It is simple. The difference between the selling price and the buying price in case the price goes down is your profit. You borrow a stock from your broker and sell it with the intention of buying it back at a lower price in the near term future and returning it to your broker when you short a stock.

When the price of a stock goes down, you make profit. You are anticipating further fall in the price of the stock when you short a stock. However, if the price of the stock instead of going down starts to go up, you get a loss.

So shorting a stock without proper risk and money management is not wise. Theoretically a stock price can go up and up making your loss as big as infinity. However, before that happens most probably you will receive a margin call from your broker that leads to a forced sale before your losses reach unmanageable proportions.

In the stock market crash of 2008, many financial companies went bankrupt due to the short selling of their shares by the speculators. Some people are against the strategy of shorting stocks. A temporary ban was put on shorting for sometime during that period.

However, the goal of short selling is not to drive the price of a stock to zero and put the company out of business. In swing trading, we are simply looking to profit from the ups and downs of stock prices. When the price of a stock goes down, short selling is the best swing trading strategy.

One reason why swing traders love short selling is due to the velocity of the moves! Negative news like poor earning, credit rating downgrade or a poor product launch can bring down a stock price in a matter of minutes and wipe out the steady gains made in months.

Shot selling can be a good hedging strategy for long term investors too. So if you a long term investor, you can lessen the impact of the sharp price drop on your portfolio by using a short selling hedging strategy. Swing traders always look for big winners and this brings them to the short side of the market. When the price of a stock starts to fall, chances are it will fall more before the market stabilizes and the price starts to rise again. - 23159

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Forex Ambush Gets You Trading Signals When You Need Them

By Gery Lermann

If you look at the Forex Ambush website you should be impressed, as i was, but the pride the developer takes in his product. After years of developing and refining his work he is certainly entitled to feel proud of a product which works so well. If you haven't seen Forex Ambush, you should take a look at this website.

According to the website, the product has the ability to make anyone richer just by providing accurate trading signals. This means that even if someone does not have a single idea about the matters of foreign exchange trading, he or she would still be able to earn real money.

The customer reviews show that most of the people who are using the product have had success turning a profit on their trades. The majority of consumers are very happy with the product and are making greater profits now than they have in the past.

Anybody who's experienced with Forex probably has experience with Forex software and robots. While the initial investment can be a little daunting, the payoff in this case is more than worth it. This is an investment, much like a trade, but it's an investment that is sure to pay off.

Forex robots can monitor the market when you're too busy to stay on top of it. They can let you know the state of your investments and alert you to trends and when it's time to trade. The robots make Forex trading easier and give investor more time to enjoy the money they're making.

Even the best Forex software can't guarantee you'll make money on every trade. Like any investment, the Forex market is unpredictable. Forex Ambush is designed to take advantage of even subtle trends and alert you by email or SMS in time to take full advantage of the market. You'll know right away if an investment needs to be made or terminated.

The website is very professional and easy to use. For those of use who aren't computer gurus, that's a big plus. The explanations are presented in clear and easy to understand language and not computerese. I like to know what I'm paying for and this site was able to help me understand.

The website is attractive, easy to use and easy to understand. There's no computerese or unnecessary information. Just the facts about how the robot can work for you and what it does. You'll be able to understand exactly what the product is and what it can do for you.

The technical jargon used on other sites is meant to impress programmers, not traders. We need to be able to install the software easily and understand how it works in the real world of Forex trading. This developer understands the needs of Forex traders and isn't out to impress software developers. His explanations are clear and informative.

I can recommend this product with confidence since i've been using it for the last six months. I've made a tidy profit in that time and I'm very happy with my investment. If you are in the market for a Forex robot, I suggest you check out several sites, but make sure Forex Ambush is one of them. - 23159

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