I get numerous emails everyday asking which online stock broker is best for penny stocks.  There are many but the following are ones I recommend for their price and ease of use.

Ameritrade

Scottrade

Etrade

Think or Swim

Zecco

Ameritrade is by far the easiest and allows trading in most stocks.  Their online trading system is also easy for novice traders but can integrate into more complicated systems.

If you’re thinking about going long term think again.  The economy is still very unstable and I predict it will take 1-2 years before things get back on track.

Right now short term profits is the way to go.  If you make a profit don’t be shy to take it.  The market doesn’t go straight up so any run that last 3-5 days could retrace.

I would also advise against holding stocks into earnings.  Holding a stock through earnings is a huge risk and not worth it.

Sectors worth watching: Oil, and Financials

After hours trading is not for everyone and I don’t recommend it unless you’re a savvy investor or you desperately need to get into or out of a stock.

The reason is that most market makers will widen the spread after the market closes. This means you’re going to get a higher ask price if you want to buy and a lower bid price if you want to sell. Market makers do this to milk the desperate investor.

There are cases where trading after hours could benefit or save you from further losses. If significant news comes out after the close and then buying or selling after hours may be required. For most cases waiting for the next day to put your order is the best choice.

The thin volume of most stocks after the market closes will not give you an advantage.

Over The Counter Stocks and NYSE stocks don’t trade after hours either.

The penny stock market is still the place for investors looking for big gains. There has been some huge gainers the last few weeks such as CTIC and NEOM.

Here are 3 to keep an eye on:

GNTA - Volume Alert

http://www.chartmoney.com/stockquotes.php/?ticker=gnta
Genta Incorporated operates as a biopharmaceutical company with a diversified
product portfolio that is focused on delivering products for the treatment of
patients with cancer.

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BGPTQ - Momentum

http://www.chartmoney.com/stockquotes.php/?ticker=bgptq
BearingPoint, Inc. provides management and technology consulting services
primarily in North America and internationally.

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UNEFF - Momentum

http://www.chartmoney.com/stockquotes.php/?ticker=uneff
Unbridled Energy is an independent natural gas evaluation and production company
specializing in shale gas and tight gas sands (“TGS”) opportunities in two main
basins within North America; the eastern US Appalachian Basin.

Many people love to Watch Jim Cramer but I have warned in previous postings just watch the talking heads on TV as entertainment and nothing else. The following videos are pretty funny.

Here is Jim on the Jon Stewart show to defend himself.

If you can weather the short term volatility in the markets, BofA looks very attractive here:

The reason for why Bank of America has dropped so low is because of how uncertain everything is and all the negativity. I believe has huge upside potential here.

1. There is the rumor that President Obama wants to nationalize the banks. Americans don’t want this. Obama has actually laughed at the idea when he said on an ABC interview, “Sweden had like five banks. We’ve got thousands of banks…managing and overseeing anything of that scale…wouldn’t make sense.

And we also have different traditions in this country.” President Obama understands that the stock market can determine his success this year. I don’t think he wants to kill off the current shareholders and take Bank of America off the market.

2) Bank of America is committed to repaying taxpayers. They paid back $402 million in a TARP dividend payment to the U.S. government. The CEO has also mentioned that they will not be borrowing any more funds. Read the rest of this entry »

If you’re a fan of Wall Street the movie, I think you will like the promo.