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Penny Stock Trades

There are three major areas to consider when making penny stock trades. Penny stocks are considered to be a risky way to invest but are one of the quickest ways to make money investing in stock if you know what you are doing. Donít be fooled however when trading penny stocks. Even though youíre investing pennies, a lot of money can be lost by those inexperienced investors looking to get rich quick. A lot of time and research must go into selecting the best penny stocks to invest in. In todayís article we will discuss three major areas to consider when selecting penny stocks to invest in.

The first thing to do when placing stock trades in penny stocks is a lot of research. Most do this by analyzing stock trends based on the stock price history. This will tell you what the stock is likely to do based on past movements. It can be difficult for investors at first who may not know where to start. Through analyzing stock trends you are able to pick the best time to buy stock. Additionally you want to look at the trade volume. You should select stock that has a high volume of trades. Stocks that have a lower trade volume donít provide as much data and therefore are not as predictable. This provides a way for you to build your list of penny stocks with the lowest risk possible.

In addition to doing significant research, investors should focus on finding a stock picking software to assist in selecting penny stocks. These software programs can do a significant amount of research for you and can analyze stock charts a lot faster than the typical investor. They can be expensive but are definitely helpful when selecting penny stocks and placing your stock trades. The key is to finding a software program that you have confidence in. Again, research is the key, and you must research different stock picking software until you find one that works for you.

Lastly, when penny stock investing, you should sign up to receive a newsletter. A newsletter will provide a lot of information regarding various stocks that you can then begin to research on your own. They provide great information that is researched by professional stock analysts and software programs. Keep in mind however, that you must do your own research and place stock trades based on your own analysis.

When penny stock trading, you must closely monitor your stocks in the event that you need to sell quickly. Once you have built a list of your hot penny stocks to monitor, continue to research and do your own analysis. Remember when you buy penny stocks you can make a great profit, but it takes a lot of time and dedication. Invest in yourself first so that you understand the ins and outs of the stock market and the different trading strategies available to ensure your success.

Market Direction: Why are good profits still being made with candlestick signals in these market conditions? Candlestick signals help identify what these market conditions are. Not only do they pinpoint which stock prices have the best potential moves, they also provide a better evaluation of what the market conditions are doing. This combination creates the proper trading strategy. Stock price moves of 20% to 40% in a matter of a few days is very prevalent in these market conditions. Obviously with the investor sentiment being bombarded with negative news about the economy, prices have been pushed down to multi-year lows. This includes the good quality companies as well as the companies that deserve to be bad multi-year lows. The evaluation of the market shows that there has to be profit taking on a very quick basis. Today's strategy is to find the potential high profit  movers, get in and get out relatively quickly.


The advantage we have with candlestick signals is the immediate illustration of when buyers are coming back into oversold stock conditions. When this occurs, the rush to get back into those positions create very fast and dramatic price moves. We are often told by the professionals on Wall Street that a 10% return in the annual portfolio returns is extremely good. Obviously this very low threshold makes these investment professionals look better when mediocre returns are achieved. Candlestick signals and patterns illustrate the potential strong snapback price moves.

As illustrated in our recent recommendation on BGC, General Cable Corp., once the Morning Star signal appeared after an extensive downtrend, the buyers rushed right back in and produced a 100% gain in four days. What are the market conditions? With all the fear in the economy, the babies are being thrown out with the bathwater. Huge profits can be made taking advantage of the reversal signals.


These profits can be produced in spite of the fact that Dow is trading relatively flat over the past two months. Although there have been small trends during that time, those trends have been interrupted with huge price moves in the opposite direction. This has made trading fairly difficult. However, candlestick signals reveal what investor sentiment is actually doing is spite of what the general market trend is doing. Simple visual analysis reveals where relative strength is participating in stock prices. Obviously a stock that is moving up when the markets are moving down dramatically has something going on that is not concerned with market trend. These visual analytical techniques help identify where the big profits can be made.

Private training session - A two-day private trading session is scheduled for January 3 and 4, 2009. If you are truly interested in learning all the nuances of candlestick signals from start to finish, do not miss this training session. Each session consists of approximately 2-5 people. This is the perfect size group for getting specialized attention. You will learn how to use candlestick signals and patterns effectively. This is not information that you can use for the next year, this is information that will improve your investment techniques dramatically for the rest of your life.

Learn how to understand and use the information built into each major candlestick signal. Learn how to greatly improve your profits when applying those signals to high profit patterns. You will be exposed to money management techniques that dramatically reduces emotional decisions. Steve Bigalow will also teach you how the candlestick signals and patterns can completely reduce the emotional Fupaws that most investors put into their investment psyche. You will learn how to analyze the proper entry strategies, stoploss strategies, and when to take profits without fear and greed influencing your decisions. Wouldn't you like to be able to control your investment future? The amount of information you will receive during a private trading session will greatly improve your investment abilities. You will not be disappointed in the insights you gain from this 400-year-old trading method. Don't miss this opportunity! Take advantage of the information that can provide you the opportunity to make big profits even when the economy may be in a recession.

Sign up today, spaces are limited. You will gain a whole new perspective on how professional investors think. This practical, on hands training will give you a clear advantage for identifying price trends in any market or any market conditions. Click here for more information on the Candlestick Forum Private training session.

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Good investing,

The Candlestick Forum Team

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