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.

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.

If you are to succeed in trading, you need to find out which trading strategy best suits you. This means taking into account your needs and resources, your expectations for return, and your risk tolerance. Even things like your age must be considered when you are choosing a trading strategy.

Becoming a day trader – The term “day trader” refers to the fact that stock traders who use this approach to buying and selling stocks within a single day, not holding a stocks overnight. They make money by exploiting short-term fluctuations in the stock market, and avoid the risk of being exposed to changes in the market overnight.

You can reduce the risks involved with day trading by sticking to fast, small profits instead of waiting for a stock to hit its peak. As with all other forms of trade, there are always drawbacks. Day trading is hard work, we must remain vigilant throughout the trading day of the population. Moreover, since brokers charge a commission for each trade has its benefits outweigh the costs of frequent trading. Read the rest of this entry »

We all know what cash is, the stuff we have in our wallets and pockets.

But there is a different way to look at cash in the market.

This is when you invest in things like money market funds, treasury bills, and overnight government repurchase agreements.

Usually found in 401(k) plans there are stable value funds that can be a shorter term investment.

Here are three reasons to make a cash investment position a part of your plan:

One reason is flexibility.

You are able to benefit from opportunities if you have a percentage of your portfolio in cash. Read the rest of this entry »

When you do short term investing, you could either make a great profit or be very disappointed.

It’s crucial to know the market very well before you do any short term investing and to also know about the behavior of the stock you plan to invest in.

Shot term investing is usually about 1 or 2 trading days.

There are some stocks out there that are best for short term investing and others that require a lot of patience and time to see any gains.

In short term investments there are five investing patterns that can be used. But first, remember that you must have self discipline when investing. Do not buy any short term stocks if you can’t practice discipline. Many web sites online can explain the following patterns thoroughly. Read the rest of this entry »

Here are 2 simple rules to trading to keep your safe. 

Do not begin to explore the markets or even invest if you cannot follow a rule.
 
Using the following rules could help you in the market:
 
1. Invest your capital wisely.
 
Do not expect to get rich quick by investing all your money into one stock.
 
Enough knowledge and a small amount of capital can make you a lot of money in ten to twenty years.
 
Be conservative with your investments and don’t gamble like a wild man. There are so many opportunities in the market. You have to speculate and explore which opportunities are worth taking and to not plunge in completely.

If all your money is invested into one opportunity, what happens if that opportunity does not work out? You miss the next opportunity just around the corner. Read the rest of this entry »

Each investor of the stock-market is in front of an enemy. A perverse enemy that will drive away millions of investors in the stock-market and has the capacity to even defeat the strategy of an experienced investor.

Who is this enemy? Emotions. The emotions are the impelling force behind every cycle of the stock-market.

If emotions were not present in the stock-market, the investors would harvest the rewards only based on the state of the economy and professional retailers would not benefit substantially from the emotional errors of others.

An example situation: You have prepared, read books, traded in the papers, and now you are making your dream come to life by investing in the market where you can make great money!

You approach losses in a mature manner like part of the learning curve. You have experienced a great deal of them but your wins are still are in the lead, thanks to the loyalty you have kept with your chosen strategy.

Arriving home from work after sitting in traffic, you find changes at home. You know that you must follow your strategy, but your stress has taken over. Read the rest of this entry »