5 Tips for Penny Stock Trading

The stock market can be a great place to invest money for your future. A lesser-known and higher-risk option for people looking for an exciting investment challenge is to try your hand at trading penny stocks.
These stocks are priced below $5 per share, sometimes even less than $1, and can produce quite an impressive return, when traded the smart way. If you are looking to get into the market with less capital this could be the way to go, as long as you're willing to put in your research. Let's explore some tips on how to trade penny stocks below.

1. Find a reputable broker: Penny stock trading carries a very high risk and it's necessary to have someone in your corner who knows what they are doing. You also want to make sure your funds are protected. If you choose to trade online make sure the site is certified and has a positive, traceable history. Similarly, if you hire an individual or firm, ask for references that will verify their trustworthiness, and preferably a track record of financial successes for their clients.
2. Trade within your financial means: Even though you may be able to purchase several more shares of a penny stock compared to their higher-priced blue chip counterparts, you still need to invest based on what you can afford. Because of the higher risk involved it is important to plan for a financial loss and ensure your bank accounts can handle such a hit. Continue to keep your total portfolio diversified; don't put all of your eggs in one basket, as they say.
3. Research the companies before you buy: It may be difficult to find a lot of information about some of the companies you can buy shares from. This is for a few reasons: they are just starting up, perhaps they're more obscure and less documented—both of which could lead to a lack of documented financial history. But continue to do your due diligence and find out any information you can before you buy. If you don't feel good about the company, simply move on.
4. Avoid questionable buys or companies: If any red flags pop up it is recommended to "walk" away from the trade. Companies will advertise their stock for sale just to make a profit for themselves. If it seems too good to be true it probably is. Seek out professional assistance if something doesn't seem right.
5. Closely monitor the stock's performance: Unlike some other investments, penny stocks don't tend to be long-term; you stand to gain the most through buying and selling quickly. Based on this it is important to continually watch the performance of the stock and the price per share. If you've made a good return on something, don't wait around for it to get even better. Take your success and move on. If you are unable to keep a close eye, hire someone that can—they may be an invaluable resource and help keep your money safe.

Do you have penny stocks in your financial portfolio? How well have they performed?

Read more »

Why Is The Euro So Strong?

The euro remains very attractive against the pound and the dollar despite the ongoing problems presented by European Debt and the probable bailouts or defaults. I have read today of a report by the BBC which stated two thirds of European economists surveyed expect Greece to default on their debt.
Last year such an announcement would have had the markets in absolute turmoil, indeed much of last years weakness on the euro was due to the debt crisis.
This year despite the well publicised problems in Portugal, Ireland, Greece and Spain the Euro remains a very unattractive prospect for those looking at buying overseas property. This is due to a number of factors:
– EFSF – The European Financial Stability Facility is designed to act a safety net for indebted European nations. The fund has recently been made permanent and has given the markets the confidence that the ECB and stronger Eurozone members are serious about coming to the financial aid of the weaker members – a criticism levied at many members. As discussed European Debt concerns had been a major weight on the euro last year but now the issue is well known and appears to be being dealt with confidence has been restored. It is worth noting that longer term this is likely to be the issue that could present Euro weakness as concerns arise over the inability of the indebted nations to repay their debts.
– Interest Rate Decisions – The UK looked almost certain to have a rate hike in the first quarter of this year and the pound made strong gains on the euro as investors positioned themselves for the event. We then had a barrage of data releases showing that in all probability the UK wasn't ready for a hike and as such these positions were unwound and led to sterling weakness. Conversely the Eurozone has been floating the prospects of an interest rate hike as soon as next month. With unemployment falling it appears the Eurozone may have turned a corner and will be the first to stomach a rise in the base rate. This has compounded the problems for the GBPEUR rate as investors have taken up stronger positions on the Euro. The US economy whilst growing is still incredibly weak and due to the amount of cheap loans issued to stimulate recovery cannot afford to go raising rates. They are still administering the latest round of Quantitative Easing and will need to fully assess the effects before committing to a rate hike.
- Economic Outlooks - The economic outlook for the Euro has improved this year with enouraging signs in manufacturing and factory orders. Unemployment is falling and the overall picture remains bouyant despite the problems of the PIGS. The UK is suffering from very low growth and the immediate future does not look rosy either. It could be months or a year before the economy is deemed strong enough to be able to handle a rate hike and even then if the Euro has already had one, it is unlikely to be a major mover.
Despite the grim news for those buying Euros, such a trend is excellent news for those selling euros. Movements this month of over 5% in your favour are presenting a great opportunity to maximise those property sales.
As specialist currency brokers we not only offer corporate and commercial rates to private individuals and all types of business, we offer expertise and guidance on activity in the markets that seeks to maximise your currency exchanges.
For an unbiased, informative and possibly lucrative discussion of current trends why not fill in the contact us form and you can speak to an experienced currency trader who will be able to explain all the ins and outs of safely, securely and profitably transferring funds overseas.

Read more »

Commodity Alert: Gold Dips in Price

Gold fell about 1 percent to its lowest in nearly a month on Tuesday on technical selling after prices broke below key support levels, but the dip may lure bargain hunters who expect the gloomy global economy to keep gold buoyant.

Gold broke below $1,710 an ounce and subsequently $1,705, key technical levels it had held since early November, which triggered stop-loss selling, traders said.

"The break probably will not last long," said a Sydney-based trader. "Funds are happy to buy on dips, and so will the central banks and the Chinese."

The prospect of continuously loose monetary policy around the world will provide support to gold, perceived as a hedge against inflation as a result of rampant cash printing by central banks.

In the latest easing move by central banks, Australia's central bank cut interest rates a quarter point to match a record low on Tuesday, stepping up efforts to safeguard the rich world's most resilient economy from the risk of recession as a mining boom peaks.

Spot gold fell nearly 1 percent to $1,698.3 an ounce, its lowest since Nov. 6, before recovering to $1,702.24 by 0649 GMT.

The most-active U.S. futures contract dropped as much as 1.3 percent to a near one-month low of $1,698.5, and stood at $1,703.

Technical analysis suggested that spot gold is poised to fall to $1,692 after breaking support at $1,707, said Reuters market analyst Wang Tao.

The slide the precious metals complex was eye-catching, compared to the performance of other markets. Asian shares slipped on an unexpected fall in U.S. manufacturing data, while the dollar index held near a one-month low.

A softer greenback usually boosts the appeal of dollar-priced commodities including gold, but traders said the stalemate in the U.S. budget talks has made investors hesitant to jump in.

"Gold is still under pressure despite the support from currency markets," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

"The physical market is quiet, there is some profit-taking, and we don't see fresh buying interest from the funds."

The "fiscal cliff", $600 billion of U.S. tax hikes and spending cuts to kick off in early 2013, threatens to push the world's biggest economy into a recession.

In other precious metals, spot platinum dropped to a one-week low of $1,585.20 an ounce before recovering to $1,588.49. Spot palladium, which rose for the past five weeks straight, fell 1.1 percent to $678, heading to its biggest daily decline in a month.

Recent car sales data have helped platinum group metals recently, which are used widely in producing exhaust-reducing catalysts.

U.S. auto sales in November raced to a five-year high for that month on a rebound from storm-ravaged October and the need to replace aging vehicles, leaving industry executives hopeful about 2013.
Last week, China's Ministry of Industry and Information Technology said the country's car sales and output will both exceed 19 million units this year. In the first 10 months of the year, total vehicle sales gained 3.6 percent on the year to 15.7 units.

Read more »

When will the Euro weaken?

The Euro has been under huge pressure recently as a result of the debt crisis. Despite this the Euro remains very strong as a currency which often has clients asking me when will the Euro weaken?

This is normally in relation to the GBPEUR rate. With the well publicised nature of the debt crisis this is a good question to be asking. After all this time last year the rate was in the 1.20's.. We are now a year later and the debt crisis has only got worse. Why are we still at 1.13-1.15 and not 1.20 or even 1.30?

Interest Rates – With the Eurozone offering investors a 1.5% return on their investment in the Euro, the currency is attractive to buy which keeps it strong. The higher a countries interest rate, the more investment it receives, and hence the stronger it grows. The raising of interest rates is a sign to the wider world that the Eurozone economy is expanding and can allow an interest rate hike. Compare this to the UK or USA who have 0.5% and 0-0.25% interest rates respectively. Looking specifically at the GBPEUR rate the sterling side is weak due to low interest rates. You only need to look at the weakness of the pound against most other currencies to understand why it is also weak against the Euro. The prospect of an interest rate hike is again being pushed into 2012 for the UK, and the Federal Reserve have said rates could be on hold until 2013! Can your currency transfer wait a year or even two in the hope things ‘might' improve?

Germany – When investors look to the Euro they look at the whole economy and not just individual nations. So the poor state of the PIIGS, whilst a major concern is not the whole story. Despite some worse than expected GDP figures coming out today for Germany, Germany has a very healthy economy with very strong exports. The long term expectations are that this will continue. Contrast this to the UK with a Manufaturing and Industrial sector in decline, and a financial sector tarred by the global financial crisis.

Economic and Political Will – There is a massive political and economic will behind the Euro. The backdrop to the current arrangement is a long bloody history and the original idea behind the economic union was to prevent the countries going to war again. To get to where we are today has taken decades of negotiation and concensus which I cannot see being undone quickly. Whilst coming under immense pressure for not acting decisively enough, the Eurozone leaders also have provided the financial back up to deal with the crisis. There are current questions over whether the bailout funds will manage Italy, hence the recent volatility, but the ECB have tools to dampen the volatility.

Just last week they bought up €22bn worth of bonds, one of the reasons the GBPEUR rate has come back to 1.13. Today Merkel and Sarkozy are meeting in Paris and this could further help the Euro.

Eurobonds – Presently each Eurozone member issues bonds themselves. Bonds are used by governments to finance the day to day running of the country. By auctioning off debt on a promise to pay back in the future, investors provide credit and liquidity to keep the governments functioning.

The idea of a Eurobond would be to consolidate the members borrowing, thereby reducing the amount of interest on bonds weaker nations have to pay because they are weak. Germany have said they will not back a Eurobond but only because they feel the indebted nations (PIIGS) don't have their house in order. It is forseeable that Germany would back the Eurobonds if the PIIGS can show themselves to be able to benefit from the Eurobond scheme. I personally cannot see how the weaker nations can manage long term in the current state. I feel the Eurobond is one answer to Europe's problems and if announced down the line will further help the Euro.

Despite the huge uncertainty in the market the Euro remains strong. Europe is the UK's biggest trading partner and we have invested heavily in their debt. For better or for worse we are part of Europe. If you believe the Eurozone will collapse, or even hope that it will because you feel suddenly the GBPEUR rate will improve, I would advise caution. The collapse of the Eurozone or further major shocks will hurt the UK economy which is already under huge strain.

In my opinion getting the best rate is about setting realistic expectations over your time frame and being ready to pounce when things are favourable. Part of our service is to not only offer award winning exchange rates, but also keep clients informed and updated so that they have all the information to make informed decisions.

If you have any currency requirements for the future – even months or years away, I can help offer assistance in making sure you benefit from market movements not suffer. Why take the risk of gambling on exchange rates moving in your favour? We are specialist currency brokers who have won awards for not only our rates, but also customer service. Whether you are an experienced market analyst or don't know your Peso from your Lira, I can help advise all the ins and outs of safely moving money abroad. 

Read more »

Why Is The Euro So Strong?

The euro remains very attractive against the pound and the dollar despite the ongoing problems presented by European Debt and the probable bailouts or defaults. I have read today of a report by the BBC which stated two thirds of European economists surveyed expect Greece to default on their debt.
 

Last year such an announcement would have had the markets in absolute turmoil, indeed much of last years weakness on the euro was due to the debt crisis.

This year despite the well publicised problems in Portugal, Ireland, Greece and Spain the Euro remains a very unattractive prospect for those looking at buying overseas property. This is due to a number of factors:

– EFSF – The European Financial Stability Facility is designed to act a safety net for indebted European nations. The fund has recently been made permanent and has given the markets the confidence that the ECB and stronger Eurozone members are serious about coming to the financial aid of the weaker members – a criticism levied at many members. As discussed European Debt concerns had been a major weight on the euro last year but now the issue is well known and appears to be being dealt with confidence has been restored. It is worth noting that longer term this is likely to be the issue that could present Euro weakness as concerns arise over the inability of the indebted nations to repay their debts.

– Interest Rate Decisions – The UK looked almost certain to have a rate hike in the first quarter of this year and the pound made strong gains on the euro as investors positioned themselves for the event. We then had a barrage of data releases showing that in all probability the UK wasn't ready for a hike and as such these positions were unwound and led to sterling weakness. Conversely the Eurozone has been floating the prospects of an interest rate hike as soon as next month. With unemployment falling it appears the Eurozone may have turned a corner and will be the first to stomach a rise in the base rate. This has compounded the problems for the GBPEUR rate as investors have taken up stronger positions on the Euro. The US economy whilst growing is still incredibly weak and due to the amount of cheap loans issued to stimulate recovery cannot afford to go raising rates. They are still administering the latest round of Quantitative Easing and will need to fully assess the effects before committing to a rate hike.

- Economic Outlooks - The economic outlook fo
r the Euro has improved this year with enouraging signs in manufacturing and factory orders. Unemployment is falling and the overall picture remains bouyant despite the problems of the PIGS. The UK is suffering from very low growth and the immediate future does not look rosy either. It could be months or a year before the economy is deemed strong enough to be able to handle a rate hike and even then if the Euro has already had one, it is unlikely to be a major mover.

Despite the grim news for those buying Euros, such a trend is excellent news for those selling euros. Movements this month of over 5% in your favour are presenting a great opportunity to maximise those property sales.

As specialist currency brokers we not only offer corporate and commercial rates to private individuals and all types of business, we offer expertise and guidance on activity in the markets that seeks to maximise your currency exchanges.

For an unbiased, informative and possibly lucrative discussion of current trends why not fill in the contact us form and you can speak to an experienced currency trader who will be able to explain all the ins and outs of safely, securely and profitably transferring funds overseas.

Read more »

To Join Online Commodity Trading Market and Get More Profit

Joining Online Commodity Trading

Investing in the stock market has now become an increasing trend as more and more people are looking for ways on how to grow their money. In addition, a lot of investors are seeing prospects in different industries, allowing them to further diversify their portfolios. One such potential endeavour that you can consider in your financial investment would be commodities trading online. The commodities market is a lucrative point of investment and conducting the trade in an online platform makes it more convenient for you.

Understanding the market
Commodities trading mean investing in basic or raw materials that are needed for everyday living. In general, it deals with energy, agricultural and metal products since these are the foundations of the global market. In the past, investing on commodities was really expensive, and a lot of investors placed themselves on financial risks because they are not aware of how to work in the market. With online commodity trading, new investors of the market are provided with better and extensive information which can help them thrive in this venture.

Why online?
Commodities trading in an online platform are becoming increasingly popular among those who are more interested in conducting transactions virtually. The practices, methods and information exchange online are considered to be far more convenient than the traditional method of trading. By joining an online platform for trading commodities, investors can acquire faster and more up-to-date information. In addition, trading is virtually possible everywhere provided that the person has access to an internet connection.

Finding a platform
Investors can choose a variety of platforms where they can conduct commodities trading online. It is important though that the investor needs to verify the validity and the legitimacy of the trading platform that he plans on participating. He should check if the business is registered and regulated by the national government and if it is a part of accredited facilities. It should also be a major consideration if the platform acquires a financial backing from an established financial institution. Apart from the legality of the business, another major consideration would be the technical aspects that the platform provides to their members. Test accounts should be provided to investors in order for them to simulate the trading market. Performing online commodity trading is the most efficient solution for those who want to diversify their portfolio but are hesitant due to the inconvenience which can be observed in conventional trading. With an online platform, the learning curve is better since the exchange of information and the acquisition of data is more up-to-date. More importantly, it is equipped with advanced programs which are relevant to investors. The convenience of online trading is indeed an attractive option for everyone who places accessibility, convenience and information exchange on higher priority.
 

Read more »

All about Binary Options

Binary options as the name suggests is the high risk involving financial tools that help make a prediction regarding the price of an asset or a commodity at a particular time duration of the day. It is considered highly risky as the estimations relate to sudden price changes which in turn are extremely hard to predict.

The binary options trading governs on a simple phenomena. These are similar to financial contracts. Make a simple guess of the increment or the decrement of the product value and you could earn a fortune. However, the chances are equally same. It could be either of the two, a raise or a decrement.

Earlier, there was a person who would assist while one was doing any kind of options trading, however with the dawn of internet, a major faction of the world now has an opportunity to participate in the binary investment option. The rules these days entitle the investor all the rights regarding the purchase price, the expiry duration as well as the rights that pertain. If the prediction is in the favor of the investor he could get the full payout or he could lose all the money that he had invested. This makes binary options a highly risk involving task. Thus, making smart analysis and also taking up a stance on the market direction is a wise move one should make in order to be on the safe side.

Before the binary options trade is carried out, there is also a binary options analysis that has to be done. This involves all the technical and the fundamental survey of the asset or the commodity which is being dealt in order to increase the success rate by manifold. Had there been no binary options analysis, the binary options trade would be more of a hit and trial and thus would purely depend upon luck.

Whether you are qualified enough or you are not, it hardly makes a difference when it comes to binary options trading. It is the easiest and the simplest way that one can implement to attain the optimum profit. Over the time, the trading has become much simpler than what it used to be earlier. Now there is no need to hire a "human" broker who would make all the transactions as well as do the rest of the formalities. All one needs is an internet connection and basic knowledge of the computer. With just this much in hand one could be the next big thing. However, one should also be aware of the underlying assets which comprise of the items that are either commodities or the standard fixed price that the owner is selling or buying.

Another form of binary options trading is through forex binary trading. This involves the betting of currencies. It can include buying or selling the outcomes. This however requires a lot of expertise and professionalism. Binary options trading is better and less risky than spot forex binary trading

Read more »

Trading Forex Becomes Easy With Modern Day Tool

Author: Steve

The strength of muscle in human body feels just like a strong economic power in hand of a person. In the growing years of life everything seems to be very much easy and people make their choices with full of confidence in mind. But, as the day passes by the reality starts to touch us all. The pieces that earlier used to fall in places without much of effort does not seem to be in good form and starts to scramble. This is the time when an individual looks to start his or her career in this competitive world with all their skill as the core power. The power's on which a person used to be proud of in his youth seems to be of no value as almost everybody does have that. Then comes the part of self realization of the fact that only having a sound economic balance in life can lend the peace of mind and identity in society for which we work so very hard. Having the desire to make it large almost every person in this nation or any part of the world goes an extra mile. Earning an amount is not enough in today's scenario. Having the sound know-how of the global economy also is mandatory. Only then a person would be able to roll his money in the trading world with confidence and look for good amount of profit. This requires sound knowledge of trade and market pulse. Everyone nowadays have a very fast paced life and to cope up with that time has to be wisely spent.

Trading Forex in any situation should not be taken as a time pass or hobby. This is a serious thing and having the right idea of that can make a person reach sky high. This is why most of the urban people having the minimal idea about this chapter are trying their luck. But, the fact is it is nothing like any card game or lucky draw. To be successful in this, one has to be a master of market algorithm. For their help in making it big in Trading Forex, several helpings tools are now available in the internet. One can go for a full fledged job and relax having such a guiding online tool or software. But, prior to purchasing the package one must make sure of checking the authenticity of the thing.

Forex Trading Systems depends on various ups and downs of trade market. And all of these depend on various countries economy. In the age of globalization nothing comes alone and everything is attached with one another in a way or the other. There are some genuine Forex Trading Guide in the internet, but just going through them will not in any way makes sure of doing a great trade. One must have the courage and cool to do that successfully and that too keeping an eye over the global economy. One must go for a reputed Forex Trading Course before doing trading.

Read more »