Archives: 2008 July

When you can really get a grasp of the stock market, you have the ability to increase your assets many times over. Some people use it as a form of passive income, while others who become really good at it, do stock trading as a profession.

One of the best ways for a person who doesn’t have a whole lot of money to invest in the stock markets, is through the use of a penny stock listing.

When it comes to penny stock listings, they offer such a large a wide variety of penny stocks to invest in. But how are you supposed to know which ones to trade?

This is the reason why you have to spend some time learning the stock market. You just can’t go into it in a lackadaisical. If you do, you’re going to quickly wish you hadn’t, because the stock market eats newbies for breakfast.

To begin with start by looking st some financial statements. These can be found anywhere on the internet,as they are for the public. It makes no difference if its a fortune 500 company or a penny stock. You want strong fundamentals.

Another thing to keep a close eye on are technicals of the stock. Just open up a chart and see what you can find. Sometimes that’s all it takes. Learn the proper ways to understand price movement. When you become really good at this, you’ll see price patterns coming from a mile away.

This may seem like a lot to go over, but it’s a small price to pay to be able to succeed trading penny stocks.

Thankfully for many of us, developers have created software that will make the process a lot faster. The software can quickly scan the entire markets to see if there are stocks that have the potential to really increase in value.

Venezuelan president Hugo Chavez may be considered by many Americans as a cartoonish type of dictator. In fact Hugo Chavez is the elected president of an important oil exporting nation and a clever worldwide political operator. Chavez has made great progress in extending his influence in the Caribbean and throughout South America.

Chavez’s regional energy cooperative Petrocaribe makes countries in Central and South American and in the Caribbean an offer that they can hardly refuse. Started in 2006, Petrocaribe lets the regions fuel starved countries buy Venezuelan oil at just 40% of the current high market price and pay back the difference over 25 years at 1% interest. That’s quite a tempting offer, ever for countries like Costa Rica, that has been friendly towards the US. Costa Rica has recently joined Petrocaribe.

The Bush administration can be thanked for much of Chavez progress. Basically the US has only been heavily involved with Columbia and that involvement has largely been in helping the Colombian government suppress the drug trade. America under Bush has largely neglected the rest of the Central American, South American, and Caribbean region. Under such conditions, the crafty Venezuelan Chavez has made considerable headway in undermining United States influence in the region.

In addition, Chavez has become friendly with the Russians and has reportedly favored the Russians with $3 billion in arms orders. The Russians are still upset with Bush for his plans to construct missile batteries in Eastern Europe, right in Russian’s backyard. Chavez has timed his trip to Moscow to coincide with the Russian’s anger over the American missile plans.

The US has some serious adjusting to make with the fact that America no longer has a blank check to carry out policy as it pleases in the Caribbean region or anywhere else. The disaster in Iraq has exposed the American military might for what it is.

It’s great to have a list of penny stocks, however it won’t do you much good if you are trying to pick the best penny stocks.

Choosing the best penny stocks isn’t that much different than deciding on which stock in the Dow Jones to invest in. The same kind of research is involved. It doesn’t matter if its a penny stock or Wal-Mart.

You want to know that the company you want to invest in has sound fundamentals. Look at all the balance sheets and income statements you can get your hands on. Obviously it’s best to invest in stocks in which the companies are already showing strong profits. Also keep an eye on their assets, its always nice to see them growing every quarter.

Another important aspect are the charts. Almost every penny stock breaks a major resistance point before it bursts. You have to keep an eye on that.

The other big factor is news. A big news event for a company can take it from a the depths of a penny stock to major player in the market. The next thing you know you?ll be reading about them in the Wall Street Journal.

Another important factor is the whole idea behind the company. Ideas, by themselves are sometimes are a bigger factor in stock movement than anything else. Many large cap stocks got to where they are just by having an idea that really clicked with the public.

I know it’s tough having to go through all these factors, especially considering that you have a big list of penny stocks that you have to research. Thankfully for all us, there is software that has made process a lot simpler.

The people who invented the software decided to start an excellent newsletter service so people can stop spending so much time researching and more time trading. The software makes about three or 4 picks a month and has a great history of trades.