Penny Stock Investing

Investor is a person who puts money into stocks, bonds or other funds. Investor has many names like a trader, a buyer, or a seller. These common names don’t reflect the difference between investors. Investors vary according to the purpose of market entry.

Day Traders: This kind of investors has many names such as short term investors, speculators, and risky investors. Those investors do not hold positions overnight; they sell most if not all of their holdings before the end of the day. They are the most active stock traders who buy and sell the same stock within the same trading day. They accept huge amount of risk in return for taking huge gains on.

How those investors pick value stocks? They must look for investing in A 1 MINUTE CHART and if they are cautious enough, they may invest in a 5 minutes chart. Those investors have a special nature; they do all their works in one day with hurry decisions so they must be more careful while making decisions.

If you are a day trader, you must be an expert of your hot stock watch list. Day trading online becomes advantage in this century, do you know why? Because most of online investors make $5000 on a single trade according to their wise decisions so investors may lose a great deal of money because of a series of unwise decisions.

Swing Traders: Those traders are considered as a short term style. Here is the best definition of swing traders: A style of trading that attempts to capture gains in a stock within 2 to 4 days. As a beginner, you can skip the first step –Day Traders – and become a swing trader. Swing trading usually has an average profit target percentage that is higher than in day trading.

How those investors pick best stocks? They must begin investing with short term opportunities on A 1 DAY CHART and then think about a weekly chart. They may ask for help and get experience from old investors and asking them about the best charts that they use.

If you are lucky, you may meet an investor gives you his experience and a good strategy which include some useful information about the entry point, exit point, risk control, looses limit, and chart lists.

Long Term Traders: We sometimes call that style “Trend Traders”. Long term investing is considered to be a less risky strategy because the overall position in the market is expected to rise.

How those investors pick winning stocks? They must trade stocks on A WEEKLY CHART, after a while they may trade on a monthly chart. Time goes, and those investors must focus on the future and sell the losers and let the winners ride.

That style requires much patient and a deep understanding of the global marketplace. Many traders consider it less exciting. If you do, then it’s better to not working on that style because you must feel comfortable with the style you choose.

> Some general tips for all kinds of investors:-

First off, stock trading is not a job; it must be a hobby of yours. This can make a big difference in your results. Then, test several strategies till you find one suitable for you. That way makes you focus on specific steps to do in order to make money.

Never invest with money you can’t afford to lose. Plus, put a trading plan during watching the stock market all day. That means you must focus on what you are holding, not on the money you invest with. And the most importantly, don’t miss any opportunity you may encounter.

There are some signals we must notice, buying and selling signals. Those signals are our guide to know when to BUY, when to SELL, and when to WAIT. If we have enough skills, this matter will be very clear to us. Those signals are accompanied by some of our researches. Therefore, never trade without understanding the importance of time and information.