If you value your time, then these two methods above are some of the best methods out there for finding penny stocks. If you would like to wear your glasses and search through the back of news papers looking for penny stocks for hours on end, then be my guest, not only will this tire you out within a week but it is very difficult trying to make any decision simply based off of something like a penny stock  found on the back of a newspaper.

The main reason for using scanning software like Telechart to find penny stocks, is that you can do both technical and fundamental analysis of the stocks all within one application. This is great because you will no longer need to go out there and ask a broker for his opinion of a company, you will have all the info right in front of you with the Telechart program, like the P/E ration, Earning, company info and industry sector etc

Telechart is also a great tool to track measure and scan for the best penny stocks in a matter of minutes unless you have scanned the stock market before, you will not fully appreciate the amount of time that this scanning tool offers you. Imagine having to scan an entire market of more than 10,000 stocks per day by hand?

Another way you can find the best penny stocks is through using a service which provides alerts. These alerts help people just getting into the penny stock market by helping you identify what makes a potential penny stock a candidate for either going long (buy for the long term or expecting the stock to go up) or short the stock (opposite to going long, buy high sell low, you are borrowing the money from your brokerage account) this will need some explanation but it can be done and is done every day throughout the world, welcome to the world of trading.

Alerts like this help you like a bycycle with ferry wheels on the side help a young child out when they are just beginning to learn to ride a bycycle. This is the same way a service like this will help you out when it comes to trading the markets.

You will also have to decide how you are going to trade these penny stocks, are you going to be a penny stock investor or are you going to be a penny stock trader. Each persons personality will dictate his own personal trading/investing style when it comes to trading penny stocks and the same goes for you, if you like fast action then trading penny stocks on a monthly or yearly basis will not be for you, you would be more inclined to day trade penny stocks or momentum trade these stocks.

When people often speak about hot penny stocks, they are talking about penny stocks that are about to make explosive moves, moves than can be anything from 100% and even in the 2000% range, this is not uncommon for penny stocks. Many hot penny stocks move this fast in a few hours or over the course of a day.

This is one of the main reasons why so many people want to trade penny stocks, they move fast and can give you massive leverage when it comes to doubling your money fast. But remember and this is where what i was saying comes into play, where there is high reward there is also high risk. If you are going to be trading penny stocks, you will need a risk management and penny stock trading plan with you at all times because just as fast penny stocks can move up, so they can move against you.

Click Here For Hot Penny Stocks About To Move

Just as much as you can stand to make money, so you can also stand to lose money in this market. And many people do lose more than they come to the table with, penny stocks are highly volatile moving and whip sawing in extreme motions, many institutions trade here and that’s why a subscription service for most penny stock investors is a must for the first few months especially when you are first getting your feet wet in this market.

With telechart you will be able to see thousands of penny stocks out there, you can scan which ones meet your criteria and which ones dont. With  over two or three thousand penny stocks trading out there, trying to search for them by hand will seem impossible and thats why we suggest that you scan for hot penny stocks using telechart, it will save you hours of time and frustration.

Personally i like trading penny stocks that are above the $5 mark, to me this indicates that the stock is worth something and could potentially turn out to be more than just a penny stock trade, and once it surpasses the $8 mark usually you will find that these penny stocks will hit the $10 mark, then consolidate (not do anything for a while or trade in this range) and then they start moving, you can also get an indication of what a stock will do by looking at its history.

If it was a penny stock a year back or a few months back and it is above $10 or $12 then this is a good indication of a stock that will climb, its good to see some of these stocks break out the $10 range this indicates not only to me but to the investment community by large that these stocks will eventually be leaders in their fields.

My suggestion is that if you find biotechs or any green energy penny stocks, pay attention. These are the next industry booms and being ahead of the heard can make you a lot of money.

Once stocks have broken the penny stock cycle, you can then add swing trading to your plan or options trading which can give you some great ways to make even more money rather than just trading penny stocks. Though penny stocks are the place you will begin, you can move on from there once you are making money

Part 1 of 2

Everyone would love to find hot penny stocks to trade, the thing is few people will ever find hot penny stocks if they go about finding them like most people do. To really appreciate how to find hot penny stocks you will need to understand how people go about finding penny stocks and why they fail using such outdated methods.

Please be patient in reading this, im going to show you how to find hot penny stocks but for you to appreciate it, you will need to first understand how most people go about penny stock trading, which causes them to lose and then i will show you those people do to make consistent money trading penny stocks.

Click Here For A List Of Hot Penny Stocks

When people (or most people) try penny stock trading, they lose most of the time. They follow their brokers advice (they call them brokers because they are broker than you) they listen to the television, they do old school charting methods and most of all, they will not make a trading plan.

If you want to trade hot penny stocks, you will need a few things….

One you will need to know what your risk tolerance levels are, do you want to trade penny stocks below $5 or above $5, what sector of the penny stock market do you want to trade? how long do you want to hold onto your penny stocks? are you looking for fast moving penny stocks or looking for penny stocks that will eventually break out and be trading like Microsoft, cisco and apple?

There are as many styles and strategies when it comes to trading penny stocks, as many as there are people in this world. I could give you a trading plan that a successful penny stock trader is using to make money and you could go out there and not make a cent because both of youhave your own unique penny stock trading ideas, risk tolerance and personalities.

But the fundamental truth is that all successful penny stock traders have two things in common. If you want to find hot penny stocks like the pros, you will either need  a very good charting platform like telechart or some of the other well known brands out there, and you will need a subscription service that alerts you to hot penny stocks.

Now you might not need a subscription service if you have years of experience, but if you do not have this experience, the service could be a good indication of what makes a hot penny stock. When you see hot penny stock alerts that others are using to trade, this gives you an indication of what is working and what constitutes a good penny stock trade.

From this point on, lets say after a few months of trading penny stocks using a subscription service and being comfortable with a charting platform you will be better able to spot hot penny stocks until then i would not suggest trading penny stocks at all, hey there is a cost to this business, if you want a hobby there are cheaper hobbies out there beside trading penny stocks.

Click Here To Read Part 2 Of Hot Penny Stocks<

When it comes to trading in any market, timeliness is a key factor when it comes to making money, it is the difference between making a little bit of money and loads of money and the same goes for trading good penny stocks.

If you want to find good penny stocks you will need a few things, i don’t believe it will be possible to make any money what so ever if you do not follow these rules when it comes to penny stock trading. You will need a plan, the most amazing thing about having a trading plan is that it helps you spot good penny stocks that others cannot see.

The thing is, that even if you find good penny stocks without a plan, you will not know how to enter nor know when to exit. All professional traders working on wall street have to have a plan, you cannot sail a ship without a plan and you cannot make money without a penny stock trading plan.

Click Here For Good Penny Stocks

Once you have set up your plan, you will need to also set out your risk management plan. This will allow you to make many small loses (and there is nothing wrong with small losses) there is something wrong with making one wrong  trade and losing it all.

Unfortunately there are many people out there who do lose more than they make and it is not that they cannot find penny stocks, but the fact that they don’t have a risk management strategy in place and do not even have a trading plan.

The next thing you will need to do is set a few hours out in your day to find the penny stocks you want to trade, yes you will not be able to watch as much TV as most people but then again you have to ask yourself “do you want what most people have?”

Im sure the reason you want to find good penny stocks is because you would like to trade and make money, yes this is not a hobby treat trading like a business and the business will take care of you.

This Is Where You Want To Find Good Penny Stocks

If you are going to be looking for good penny stocks, there is the new way and then there is the old way when it comes to finding good penny stocks. The old way was manually sorting through thousands of penny stock charts per day, this takes up way too much time and it is not necessary.

With a platform like telechart you will be able to manually scan for good penny stocks that you are looking for, you set your personal criteria formula and then the software looks for the penny stocks making the moves that you would like to take part in.

You will also need to define what a good penny stock is, we all have our own definition of what a good penny stock is and this is where your plan comes into play.

There is also penny stock prophet that you can sign up with, they provide good penny stock alerts which let you in on the inside of when they think that a penny stock is about to make a major move. Their service is pretty cheap, considering that if you follow the above advice with a solid trading plan and also couple that with a risk management plan that you will make good money trading penny stocks.

There are just so many penny stocks out there, the last thing you would want to do is spend all your time and day searching for them, use one of these services to help save you time and money but before investing in any system you will need to define your risk management levels, what you are comfortable trading at, how much are you willing to lose and what time frame you are looking at trading these penny stocks.

If you think that you cannot afford these services then think again, there is a an old saying that there is a price to doing business, the great thing about trading is that you dont need employers and you only need a laptop connection, the internet and a good service to make money trading penny stocks.

What other business affords you such little upfront cost? To buy a franchise could cost you hundreds of thousands of dollars with no gaurantee that you will be successful yet you are able to get into trading stocks with a little cost upfront.

Penny stock research is one of the most important aspects of trading anyone can make. The only problem when doing penny stock research online is that there seems to be a lot of noise. That’s the worst thing everyone out there has got an opinion. This expert says this, that expert says that, so who do you listen to?

Will this is what makes trading so interesting, whether you trade penny stocks or you trade any market research can make or break you. before you do your penny stock research, you will have to decide are you going to trade penny stocks based on technical or fundamental analysis?

If you base your trading on technicals you will need to know how to read charts, how to interpret volume as well as the many different

indicators. There are so many indicators these days, which indicator do you choose?

Click Here For The Best Online Penny Stock Research Platform 30 Day FREE Trial

Then if you are a fundamental trader, you will have to look at the companies progress in terms of business, are they making or losing money. Sometimes you will have to dig deep to find this out.

You will want to know if they are paying their stock holders a dividend, what is their price earning ration and how many of their shares are being traded each day.

As you can see you will have to decide which method you are going to take when you go about choosing your penny stocks, from here you will also need to make up your mind, whether you are going to be a day trader or a investor.

The rule doesn’t have to be day trader or investor but if you are going to trade them, how long are you going to hold onto your penny stocks?

Trading can last from a few minutes to a few days even upto a few weeks. Investing is looking at the long term point of view. Another point is if you are looking to buy penny stocks, what price range of penny stocks are you going to buy?

You can buy penny stocks from a few cents right up-to $10.

You will also need to decide which trading strategy you are going to take when you go about your penny stock trading, are you going to be a bullish or bearish trader?

all these things need to be thought of, but the biggest question is, where do i find this info?

telechart is a great penny stock research platform, that will allow you to research your penny stocks and also provide you with the actual fundamental analysis of the company. You can find out everything you will need to know with telechart.

You can scan the entire universe of stocks with telechart, so you will not need to waste much time at all sifting and sorting through various stocks, you can choose which stocks you want to trade push a button and voila, there you have it. You can get to trade the markets using telechart.

For the price of telechart, it is one of the best penny stock research software on the market, you get a thirty day FREE trial and you can test and play around with the system.

You get to set up watch list, set up personal criteria formulas to scan the market with, the opportunities are endless with telechart.

]]> http://www.mastertrader101.com/penny-stocks/penny-stock-research/feed/ 0 http://www.mastertrader101.com/penny-stocks/penny-stock-software/ http://www.mastertrader101.com/penny-stocks/penny-stock-software/#comments Tue, 30 Mar 2010 16:52:12 +0000 http://www.mastertrader101.com/?p=149 Discover one penny stock software tool that can bring you over 9,000 stocks in less than a minute. This software saves you time, money and energy when it comes to selecting penny stocks that can make you money. You can also get a FREE trial of this penny stock software tool to try out for 30 FREE days and you can see for yourself the power behind the penny stock software tool.

Penny stock software is something that few people realise exists. I mean would it be possible to trade the markets with no tools. There are over 9,000 Stocks listed on the American exchanges and finding penny stocks would be impossible to locate if you had to do them by hand.

Penny stock software allows you to scan the market for stock moves that can make you a lot of money and also provide you with shorting opportunities.

For some people penny stocks mean different things, while to others it means a lot. For those traditional penny stock players out there trading true penny stocks would be any stock which costs less than a dollar.

30 Day FREE Penny Stock Software Trial Click Here

But the problem with playing stocks less than a dollar is that they will often be ten times more volatile than stocks that are trading above that.

For those of us that prefer high end penny stocks they can be any stock that trades between $1 and $10. This allows for explosive moves in the penny stock market and even sometimes you can do more with these stocks than with the penny stocks worth less than a $1 amount.

A few years back i was at a seminar where one guy turned $10,000 into over a million trading stocks between $5 and $10. What he would do is trade penny stocks that were optionable. Meaning he could either buy calls or puts on these penny stocks.

Most stocks in the trading range of between $7 will move up fast to the $10 range, once they hit the resistance level of $10 they either go back down slowly to the $5 level or they hit resistance and they make a correction where they just explode.

Once a stock has passed the $10 range, it will usually run up to the $15 mark, if the company has good fundamentals, meaning sales are up, profits are up, the dividend is up and they are introducing a new product, it is not uncommon to have a $5 stock move right up into the $25 range within one year.

Click Here To Watch How You Can Scan For Penny Stocks

So even if you went long (bought) penny stock options just before they hit the $6 mark provided they were optionable (but you need to learn options) then you could ride them all the way up.

Well what if they go back down and don’t go past the $10 mark?

Well then you have the option to either buy a put and short the stock or move onto other stocks in your universe. There is so many things you can do with penny stocks. But where can you find these penny stocks?

Well telechart is one of the best and cheapest software tools out there that can help you find the stocks that you need to make money with. You can also scan the market for your criteria, like what price range are you looking for, what dividend are you looking for, what sales info are you looking for.

The software is simple to use and you can be up and running in no time with telechart. People have been using telechart for a number of years, going back twenty years so in fact the software is quit old. You can also use their other software tool called stock fetcher which is a newer improved version of telechart.

They have made the scanning process much easier to use and you can do so much more with this software tool than you could imagine. The best thing is you could even use this piece of software as a paper trading and back testing system to base your trades upon.

How Ordinary People Are Cashing In Using Online Stock Trading

For those looking to make money other than a job and looking for alternative investments other than those offered by or through traditional financial advisors, the stock market is the place to be and unlike 20 years ago it is more accessible for the small man on the street than any other time in history.

20 years ago it would have been so expensive to buy and sell stocks, the brokerage firms charges hundreds of dollars for executing small trades, that for the little guy there was no chance he was able to participate in the markets.

Well all thats changes thanks to technology, now the little guy like you and i have even more opportunity than ever before, with free trades available, many online brokers to choose from, we are now finally behind the wheel.

Most people dont even realise that slippage has mostly vanished even though some of the gurus still speak about it out there today, no really we have more chance at making money online than floor traders and let me explain.

Floor traders have to sit there executing a cetain amount of trades, day in and day out, whether there is panik in the market or not, you and i have the choice at when we want to enter and when we prefer to not trade.

How The New Millionaires Will Be Made Trading Stocks Online

With the internets boom and the world truly becoming a global ecomonomy we have more than ample opportunity at making money both in the western markets and the asian markets, its now estimated that 3.4 trillion dollars circles the world in a 24hr period, that is money being traded through forex, options and thos huge hedge funds moving their money.

All the average person at home has to do, is get a good course, do a little homework on trading and you have a high chance of making money, the funny thing is in history, there has always been oppportunity like never before but few people ever actually take the opportunity to make money.

You and i can have an account opened in 24 hours, be trading in 24hrs and making more money through this endevour then would have been possible 20 years ago.

So why arnt more people trading online, well the vast majority of people like being told what to do, they think financial advisors, mutual fund managers and the likes of those that use fancy jargon are much smarter than them so in this case, for them it would seem to be a better opportunity.

If you can spare two hours per day, switch the T.V off and actually learn to earn, you can retire using some of these stratergies in a very short time, like the right combinations of options can make someone a millionaire in a bear market in about 8 months using puts with little more than $20,000

You need to learn technical analysis, fundemental analysis and perhaps go to a good course, this way you will be ahead of 90% of the people working in the financial world gauranteed!

Even A Little Education Can Get You Far With Online Trading

Not even mutual fund managers are able to make this amount of money trading stocks, yet most people would prefer to hand over their hard earned money.

So whats stopping you from making money online? probably a little bit of fear, greed and what people would think of you, what you should do, is not be too concerned what others think, because at the end of the day, in the western world, the goverments in the 21st century will not be able to afford to give you a pension, so if i was you, i would either start a business, or learn to invest to look after you number one assett you.

The opportunities are there! but will you take them, browse this site for more info on stock trading

Trading Systems Of The Wealthy That You Can Use Today

Many people venturing into the trading world, will most likely be coming from a corporate background and wishing to enter into the world of trading in the hopes of making money online that will either top up their retirement or even help them retire sooner.

But most people are blind to the fact that trading is 80-90% psychological and 10% pysical. What this basically means is that the vast majority of people loose money online, no because they are poor traders, but rather that they cannot manage their emotions properly, most golfers think that the game of golf is 90% psychological and hence for this reason have their own psychologists.

So what does psychology have to do with trading, well in order for you to manage your emotions correctly, you will need to have a system in place to trade at your full capacity.

Lets look at is this way, most people have eaten in a fast food restaurant or any world renowned fast food place, what you will notice of these highly successfull businesses is that everything is systomatic.

They leave nothing to chance! They have someone taking orders, one person working the till, the other making food, the other cleaning tables, another delivering the food to the tables etc, you need to think about trading in the same way.

This Is The Reason Why Traders Make Money, They Have A System!!

A system will keep you desciplined and inorder to be a successfull trader discipline is number one on the list, so when you have a system that says ” i will only buy stocks after 10 am in the morning” then thats what you do, you will not be acting on impulses, which are purly emotional.

Investing should not be emotional, if you have a hunch about something or feel weird in your stomach about something that might happen, its probably not your gut instinct but rather the cheese burger you had for lunch.

You system needs to tell you what you will do, when will you do it, how will you know you have reached your goal in terms of your one, two and three year goal plan when it comes to trading, you need to have a system on how you are going to go about choosing the stock, trading the stock, when you will enter and exit the trade, all these things should be set in stone.

This is why so many people fail at trading, not that the markets are difficult to learn, but the fact that they are weak at discipling themselves, so how do you become diciplined?

Well you start off small, like by doing what you say you going to do, like i will switch of the T.V every night for one hour to read financial news about stocks in todays headlines, small but daily diciplined actions like this will change your life and most of all your bank acount.

Even A Poor Trading System Will Beat The Best Trader Of The Long Run With No System

A good system takes all the guess work out of you daily trading routine, you do not want to waste your time on things that done work and especially waste the hard earned money that you work so hard to put into the markets.

When you start the system its ok to refine it as you go, but do not for any one reason go and change the plan just because you think a particular stock will increase or decrease in value, follow the system and follow you long turn goal plan and you will find success when it comes to trading.

One last thing here, is that, just because you have a system does not mean that you will not make money in the markets, what this means is that you will have a solid plan on how to better manage the losees and any future losses, learn from your mistakes, improve daily and continue learning and you will make money for sure in the markets, but it all begins with a system.

Swing trading Up And Down To Your Success

I am going to tell you a little secret about swing trading and most of all its quite profitable, but first i have to ask you this question about trading. Do you want to be a successfull trader? i hear you say of course! but i want to challenge you to the following, the next time you mention the following to someone you know or in passing, say the following ” the stock markets crashing today”

Have a look at their face, you will hear people loosing there shirts like we have seen this year and last year 08/09 yet i laugh when i hear this, not because they lost money or because im sick in the head but because it just doesnt have to be this way at all.

When i mention to people that when the market goes down i can make money, i often get told yes “just buy more stocks when its down” Hmmm but how do we know its not going to keep going down? The truth is we dont and i like this answer for several reason though at the same time it annoys me and heres why.

How Ordinary People Make Money In Bull And Bear Markets

, Whether They Go Up or Down They Make Money

You see, markets always go up and down “ofcourse” but hear me out before you think i am trying to insult your intelligence! The thing is most people are so busy working hard for money each day, they cant be bothered to learn how to make money, so they give there hard earned money to fund managers who can only make money when the markets going up, so what do you think the manager tells his clients when the market goes south?

You guessed it “buy more units/shares as, this is the best time to buy” i wonder why they tell this to so many people, maybe to keep their funds alive?

Well it doesnt have to be that way, with swing trading we follow a stock using technical analysis, knowing that on average every four weeks the stock will move in one of three directions, up, down or side ways, now its nice to make money on the upside and everyone know buy low sell high, but what about when the stock goes south?

Well then we simply short the stock, which means we borrow the shares from our broker at $40 they then give it to us and lets say that the stock goes down to $10, we then go buy the stock and give it back to them (please not this all happens through you broker, you do not need to go out there an actually do this yourself, thank goodness!!)

So you give it back to them! you bought it for $10 but shorted it at $40 (40-10=30) you just made $30, sound simple? well it is! there is a whole section of the market that just do this and its getting more and more popular.

The Beauty About Swing Trading Is There Are Always Going To Be Seasons And Cyclicals When It Comes To Investing

This stratergy can be enhaced by combining options with the stock, all you do is when you short the stock, sell calls and buy puts as well as keep shorting the stock, this is what creates synthetic positins, but more about this later.

Anyway, you no longer need to worry about what a stocks going to do with shorting  besides when it consolodates (moves sideways) if you combine shorting with options you can have the odds much higher when it comes to making money.

Shorting takes practice and a good knowledge of technical knowledge but with a bit of practice, you can find it a lot more rewarding then just buying and hopeing the stock goes up.

Why Not All Trading software Is created Equel

Thank goodness for the internet but thank goodness for microsoft! There is so much trading software out there these days that its so hard to choose which software package, but choosing and buying the package is only the beginning you will need to know the following when it comes to buying trading software.

What you need to know before buying trading software

first of all you want to buy software from a reputable trading software manufacturer, you will need it most of all to be user friendly, easy to browse and not too proccessor intensive when using it on a compute as some programs can slow the computer down to rediculous levels.

Click Here For The Best Stock/Option Trading Software Online

Also never buy or pay monthy for a service without been given a free trial, if they dont offer a trial but the right ups are good, beware! Its probably just good marketing and not worth making the investment into the software. Another thing you will need to know is what kind of training do they offer for this piece of trading software?

Also dont go out there to look for the perfect system before defining your trading system, as this could help you make any software service more powerfull, once you have defined how you will combine it with your own plan

You should spend quite a bit of time getting to use the software before placing any kind of trade for a few reasons which i will mention.

First of you do not wanting to be placing a buy order instead of a sell order, you will loose money jumping on a piece of software before test driving it. Read the following article on the biggest mistakes traders make when they first start trading online.

Its like getting into a car, that you have never driven before and travelling on the high way at 200 mph not knowing where the brakes are! and if you think im being dramatic, many traders have committed suicide from loosing money, its not something you should take lightly.

A good idea would be to watch and follow the training while looking or going through whats known as the dashboard (main panel of the software) And it is even a better idea before even learning how to use this piece of software to paper trade or spend two-four hours just clicking through and browing where everything is on the screen, this way when it comes to watching any online tutorial you will save the frustration and be more familiar with where everything is.

Follow these Steps when choosing the right trading software

It will also help you remember what you have just learnt. Another important factor is how good is the tech support and customer support, will they keep in contact with you when you have an issue, how long will it take for them to come back to you regarding any of you questions.

Also ask them for any known bugs or glitches in the system, if they say there are none, they are lying and run, every piece of software on the planet has bugs including microsoft.

So then you will want to know what technical indicators do they include in their system, do they have propriatery indicators and if so do they explain them thoroughly? Can they prove them, have they backtested them? do they work?

If you wanted to add to this, you could also add a robot trading system to your software package inorder to make more money

These are all things you should consider as well as do they allow live real time streaming quotes into the system, or will you have to go out onto the internet to look for the info, do they incorporate fundemental analysis, such as the company info, how many assetts they have, previous quartely sales etc

Do This And You Will Find Success Trading Stocks Online, Its Just A Matter Of Time

The last thing is try a few packages, but dont become obsessed with trying to find the perfect package, some packages will miss one or two things that another package has, the thing is you will want a trading package that will allow you to start trading in a relitevly short time, the real thing is this software wont make you money on a good system and descipline will