Knowing How Penny Stocks, Pink Sheets and Micro Caps Differ Can Be A Profitable Journey

By James Brumley

Its easy to use the term penny stock interchangeably with pink sheet. The same goes for bulletin board and micro cap. Unfortunately, investors are doing themselves a great disservice by mentally lumping all four distinct descriptions into one category. More specifically, investors may be overlooking tremendous opportunities by not acknowledging their differences.

Though its likely you know the true definition of at least a couple of these terms, its worth spending a couple of minutes planting a simple " and unique " explanation in the back of your mind for each one. Doing so may mean the difference between making a profitable investment or not at some point in the future.

Penny Stocks " As a general rule of thumb, any stock priced under $5.00 is considered a penny stock, though many traders dont consider a stock to be a penny stock unless its priced under $1.00. Either is acceptable, though one definition clearly expands the number of stocks that could qualify as penny stocks.

If you want to short or buy a penny stock on margin, make sure you know whom youre doing business with. Some brokerages will not allow shorting of any stock under $5; others dont place a limit. So, choose wisely.

Often a stocks price sinks because a temporary situation has developed. It may even have met the same requirements as higher priced stocks at some point. A stock with this type of price movement could be a great investment opportunity when it trades as a penny stock"which can be a pink sheet or bulletin board stock (see below).

One of the riskiest types of stocks to invest in is a pink sheet stock, traded on an over-the-counter quotation system. Before you completely eliminate them from your investment world, its worth doing a little homework because this stigma isnt always deserved.

Where a foreign company chooses to list their stock is not a gauge of credibility. For some technical or logistical reason, the stock cannot be listed with one of the exchanges or the bulletin board system.

On that note, however, the potential downside of pink sheet stocks appears there are essentially no reporting/disclosure requirements for companies with stocks listed as pink sheet equities. In other words, you may not be able to view any audited accounting statements for these stocks. Many pink sheet companies can and do disclose every single financial statement they produce, however. For that reason, these stocks should be considered on a case-by-case basis.

On the other hand, if a stock trades on the OTC market, or as an OTCBB stock, you can be assured that these companies have met SEC requirements.

This may come as a surprise, but the bulletin board system is not the only over-the-counter game in town. Both pink sheet and NASDAQ markets are OTC markets.

Share price doesnt play a direct role in determining if an equity is listed as a bulletin board stock or an exchange-listed stock either. However, the exchanges (or the NASDAQ) have certain market cap requirements that may not be yet met by a bulletin board company.

Dont just assume that all bulletin board stocks lack the stability of exchange-listed stocks. You might find some hidden gems that are stronger and more productive.

The reason there is plenty of micro cap stocks with share prices over $5 are because price isnt considered when making that determination. Micro caps are simply stocks with market caps of $250 million or less.

Micro Caps can also trade on any exchange, so its status isnt based on whether its listed on the New York Stock Exchange. Its minimum requirement is only $25 million.

Bottom Line

As you can see, penny stocks, pink sheets, bulletin boards and micro caps all serve different purposes and play the trading game uniquely. In this instance, semantics do matter. Becoming knowledgeable about specific definitions will go a long way in making profitable investments.

Your most educational website for information regarding penny stocks to top stock picks is www.smallcapnetwork.com. We offer timely and meaningful market commentary and trading ideas. Sign up for the free e-newsletter today. - 23204

About the Author:

James Brumley is an expert in the small stock arena covering penny stocks and small cap stocks for over 10 years now. Investing in penny stocks can be very risky and it is recommended you gain access to the limited amount of information available to investors. The Small Cap Network's free newsletter is one source sure to provide valuable insight and ideas.

Learn Forex And Be A Pro In No Time

By Bart Icles

What should you do if you want to learn forex trading? Where should you start? These are just few of the questions that will be running through your head once you decide to try forex trading.

The first thing that you should do to learn forex is to find out the different factors and elements of forex trading. You should be equipped with the base knowledge of the forex market and its quirks. You should be able to establish on your own how lucrative it can be if done the right way. If you become a successful forex trader, it can be a way of life.

When you learn forex, you will be able to find out how the forex market came into the finance scene. It started in the 1970s after fixed currency exchange rates were eradicated, replaced by the now dynamic nature of currencies. Since then, the forex market exponentially increased, making it the largest financial market in the world. Even the stock exchange is dwarfed by it.

You will also be able to find out that the forex market involves different types of entities trading in it once you learn forex. Among the diverse players in the forex market are organizations (big and small alike), government entities, private companies, international banks, brokers, firms, and the average Joe. Yes, you're right. The forex market is for everybody, and it can be a very nice thing to venture into if you use the right strategy and continue winning. Major forex market players can earn millions daily!

You will know that you can trade online or via telephone when you learn forex. This will allow you to know the advantages and disadvantages of the different means of forex trading. Once you are able to learn the advantages and disadvantages of the different means, you will be able to gauge where you will be more comfortable in. The major forex trading centers are in big cities, like London, New York, Tokyo, and Frankfurt.

When you learn forex, you will be able to understand its different technicalities along with the basic forex trading principles that you would really be needing in order to be a successful forex trader. You will be equipped with the necessary skills that will help you tell the difference of a good and bad forex trading signal.

Small players like you can trade in the forex market. You should be able to learn forex, though, before anything else so that you can acquire the necessary foundation to be forex-savvy. You can earn a nice, tidy income once you get the hang of it. - 23204

About the Author:

A forex blog is a powerful tool in your forex education. Learning with forex blogs takes dedication and a good writer and teacher. But is well worth it, once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

Develop A Forex Trading System To Ensure Success

By Bart Icles

Forex traders who are new to the forex market are most of the time not well-equipped in gauging what to expect and what the realities are when trading in the forex market. A lot end up in a financial suicide since they do not really know what to do. First, they create a forex account, trade in it, lose, then trade in it again and then lose again. Forex trading should not be treated as purely a gamble. Along with the right forex trading system, forex trading can be a money-spinning activity which you can always rely on. Developing a forex trading system that works for you makes the losing streak that you have been experiencing go away and, eventually, gone forever.

While you are developing the forex trading system that you would eventually be employing when you do forex trading, practice with a dummy account first. This way, you will not be risking your hard-earned money. You will be able to develop the system through the use of this dummy account. This way, losses are avoided and your path to forex trading success will become a gem-lined road.

Here are some characteristics of a good forex trading system:

1. The forex trading system should make you be able to trade successfully given all the odds. It should make you trade with proven techniques that presents the fewest risk of incurring losses.

2. The forex trading system should make you track the progress of your trade at all angles. It should enable you to predict the outcome given all the signals.

3. The forex trading system should help you set up the forex trading indicators to your advantage. These indicators will be used to filter the different factors of your forex trading activities.

4. The forex trading system should include cut and dried techniques that you are comfortable with. You should mix in some of your own style to make you more comfortable.

5. The forex trading system should not make you have a hard time in searching for exit and entry forex trading points. Reading the signals right is a crucial element to this.

6. The forex trading system should give you sound money management skills. This is very much needed since the forex market is a very unpredictable market to trade in. The right approach to money management will enable you to hold on to your precious resources.

People from all walks of life can make good money when forex trading. Putting in place a great forex trading system is the key to it. - 23204

About the Author:

Using a forex trading signal starts with a desire to learn and a drive to become a great trader. Learning to use forex trade signals is a powerful technique, it takes a good teacher and mentor. But once you learn how to trade using them your life will change and you have options and financial resources you never had before.

What is Foreclosure

By Doc Schmyz

Your mortgage is the most important bill we have to pay every month. Besides credit card bills, we also have to make sure we don't miss our other monthly payments. Unfortunately paying with plastic makes it difficult to track our expenses and easier to splurge on shopping sprees. When we fail to pay the mortgage; foreclosure happens and we lose our home.

Foreclosure...what exactly is it?

When you miss a number of payments; your mortgage lender has the right to foreclose on the home by selling or repossessing the property.

The usual number of payments that borrowers miss before their house goes into foreclosure is 3 months. In other cases the lender may accelerate the payment to give the borrower a chance to settle his or her debt. They will require the borrower to pay all the missed payments at once.

There are different types of foreclosure that lenders can do.

Judicial foreclosure

The lender sues the homeowner. If the owner of the house does not respond to the lawsuit the lender wins. The property is then put up for auction. A court official will be in charge of the auction. Participants will have to compete with the mortgage lenders bid. If no one out bids the mortgage lender he repossesses the house. Otherwise, the deed will go to the highest bidder.

Foreclosure by the power of sale

The deed of the house goes directly back to the mortgage lender. The house is then sold by a real estate agent. Proceeds earned from the sale will be used for paying off the amount owed by the former homeowner. If the proceeds are not enough to cover the mortgage amount the lender will issue a deficiency judgment.

The deficiency judgment is the amount left after the proceeds from the sale cover the mortgage owed by the previous homeowner. The previous homeowner is liable for it.

Strict foreclosure

The court orders the borrower to pay the mortgage in a certain period of time. If the borrower fails the property will go directly back to the mortgage lender without any obligation to sell it.

Judicial and foreclosure by power of sale are the most commonly used methods in United States. Other states use other methods. Strict foreclosure was originally used but is now only utilized by a few states such as Vermont and New Hampshire. - 23204

About the Author:

Doc Schmyz has invested all over the US. He built a free website shares Real estate investing information for all over the US. Find Real estate investing information by state

Forex Trading And You

By Bart Icles

A lot of strategies are being used in forex trading. There are strategies that work, there are some that do not. Sometimes, simple strategies work well, sometimes complicated ones do. Whatever the strategies you are employing in forex trading, you should only be aiming for one thing, that is, be able to be on the winning end and not on the losing end. It is very helpful to be able o devise your own forex trading strategy to be able to develop a winning streak during forex trading.

The most important thing to consider in developing your own forex trading strategy is to be able to keep it simple to you. This is because the more complicated a forex trading strategy is for you, the harder it is to keep up with. You would need to keep up and keep track of a lot of things that will make you lose sight of your main goal, that is, to keep on winning and making good money during forex trading.

First thing to consider in forex trading is to be able to determine what your main objective is. Your objectives may vary from time to time, of course. During one trade, your objective might be to earn twice as much. In another, your objective might be to earn a million bucks. Whichever your objective is, it is bent on one thing, that is, to win and be able to earn money. To do this, your objective should be to be able to make consistent winning trades with the same strategy.

Whatever strategy you use in forex trading, you should always have one characteristic to adhere to. And what characteristic is that? Discipline. Why? Discipline will keep your emotions in check. As in everything, when you are in control of your emotions, you will be able to make sound decisions since you are in the right mental state. You will have the ability to focus on what you are doing. It will allow you to gauge when to put the stops. It will teach you how to stick to a plan and be successful in it.

In forex trading, the most important thing is to make sure that the system or the strategy that you will be using will function well and, of course, all the ins and outs of it should be like the palm of your hand. You should make your own set of rules and criteria to be able to determine which would or would not work. Of course, you should consider the forex signals that you can freely find anywhere, may it be online, the local newspaper, or a trusted friend who is also doing forex trading. - 23204

About the Author:

When you learn to trade the forex it starts with a desire to learn and a drive to become a great trader. When learning forex trading realize it takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.