What Can Your Penny Stock Broker Do For You?

By Malcolm Torren

Penny stocks are very fragile investments. They are less liquid. The stocks are prone to fraudulent activities both online and offline. Stock prices are difficult to price accurately thus lure in scheming opportunists. Also, there is lack of information in companies that sell their penny shares. With all these potential risks mentioned, you need a best friend in the business. The penny stock broker can help you with your investments.

In between the stock seller and the stock buyer is the brokerage firm. If a company sells the stocks, someone has to buy it. The penny stock broker will facilitate and the transaction is completed. But in practice, this is not as easy as it is described here. It's much more complex and requires special stock market intelligence. This is like an advanced buy-and-sell procedure where investors win and lose everyday.

- What can these brokerage firms do for you? Movies about big corporations usually have scenes of a major stock exchange. It would seem like everything in the trading floor is messed up. On the contrary, it is very well in order. If a small cap company sells shares at a low start and someone buys them, the brokerage is behind the dealings. The penny stock broker is like the gatekeeper of your stocks. They guard your investment safely from market manipulations.

- What are these brokers' leverages? The greatest advantage of working with a penny stock broker is that they are the most exposed entities in the business. They understand the loops inside and out. They can give you sound advice on what stocks to buy, when to buy them, and how. Of course they would also advice you what stocks to sell, when, and how to sell them. Whether you win of you lose, they will always be your ally.

- If you lose, will they lose, too? No. A penny stock broker is not the investor. They are the middle men and technically speaking, they don't have any interest that contradicts yours. Therefore they don't have anything to lose or profit. What they are providing is service. They do you a favor of facilitating your investments hoping that you will profit and they will get a commission.

- Can they earn from your loss? If your stocks fell and you didn't make any money, they get the commission elsewhere. The penny stock broker survives and sustains their service by handling many clients. So they're basically a service oriented firm with a list of clientele. You are one of them.

- Is it fair for them to earn while you lose? Honestly, yes it is. But most of these brokerage firms advice you to spread your investments to as many share to many companies as long as you can still afford it. So that way, if you lose from one investment, you might gain from the other. That's another way to make a good bargain. And you may have another broker to assist you with your other investments.

However, here's a tip for you. Many ambiguous claims of cheap stocks pretend that he or she is a legit penny stock broker. Shares are lowered to the most affordable rate because of the fact that penny stocks are priced inaccurately. If this happens, check on their track record if there's any document available. Report any activities of this kind to the SEC. - 23204

About the Author:

Watch out for penny stock pick scams. Find an online penny stock broker today.

Investments In Australian Stock Market

By Michael Kaufmann

Investors interested in the Australian stock market should be inspired by the minimal delays in the stock trading, since the all-electronic system has been implemented. The added bonus of direct transactions with investors are due to the fact that there is none of those market markers for ordinary shares or loss of stop orders in SEATS, which is the all-electronic trading system.

Gone is the call system, in which exchange employees called "chalkies" would write on chalkboards to indicate bids and asks. Now traders can place their orders via the internet, and brokers normally put them directly in touch with the electronic trading system. Accordingly, online trading has become increasingly popular, fuelled by the new automated trading tools that have become available, such as trading bots.

As a result, new kinds of investors have taken an interest in investing in the Australian stock market. To help these new investors learn how to buy and sell stocks, the Australian Securities Exchange provides a mock trading game called Sharemarket, which gives players $50,000 in play money to invest. While the game is particularly popular with students, it is open to anyone who would like to participate, and is an ideal way for future traders to learn how the stock exchange functions.

The Australian Securities Exchange (ASX) has a long history related to the stock market. Since gaining ground in the late 1800s, as it first started out as a separated-based exchange, it has quickly evolved into the main giant stock exchanger it is today. What at first was the beginning exchanges totaling to six, for each capital, the ASX soon turned into a single exchange in the early 1900s, which was ultimately called the Australian Association Stock Exchanges. The ASX may have the power to regulate other stock companies but is not allowed to do any regulating of within its own company, which is, by the way, publically owned. The ASX has limited trading options with regard to its share owners, being that a shareholder may not become more than 15% invested in the companys shares.

The primary regulator of the trading of small company stocks is the Australian Securities and Investments Commission (ASIC); this is the market the ASX trades in. In addition, the Ministry of Treasury has the right to impose conditions on the operating license of the ASX.

There are numerous companies that openly discuss and give advice on how to follow the Australian stock market and its stock indices, the S&P, or what is also known as, the Standard and Poor list. The S&P joins the ASX in maintaining the stock index lists. The trading investor company, Intelligent Investor, employs a staff of investing experts that are ready to provide expert advice to their members. The advice is delivered on a one on one basis and in English. They offer a free trail membership with a 100% money-back guarantee. - 23204

About the Author:

Michael Kaufmann is a famous journalist and traveler from Norway. He writes for several important newspapers about topics such as Stock Exchange in Australia, Invest Share Market, commodity, currency speculations and much other which attract attention of many readers.

Making Serious Money With Penny Stock Trading

By Shane Winson

It is possible to make a lot of money trading penny stocks. Penny stocks are low priced and usually less than $1 per share. These are highly volatile in nature and may drop or gain hundreds of percentage points.

These can make you a lot of money due to the high volatility. Penny stocks can be more profitable than the other large cap stocks. Many people do this full time from their home. A lot of people make money from this as a hobby.

There are systems available that claim to do the research on your part and help you in analyzing the winning trends. You should check out the reviews and study how the systems work before buying them.

You can use software that analyses the trading patterns every day. The can make recommendation based on the information it gathers. It can make decisions based on certain trading patterns that are often profitable.

To begin trading, you need a stock broker that trades penny stocks. You can sign up with a full service broker. If you sign up with a reputed broker, you will get good tools to enable yourself to make better decisions and learn more.

You can get information about good companies from various sources. You can find out the opinion of different experts on their blogs. You can also subscribe to various newsletters.

You have to be cautious about following the advice offered by various newsletters. They may not be correct every time even if they have proved profitable previously. You should study all indicators and patterns buying making a decision.

Penny stock trading can make you a lot of money if you know the facts. You can not make thousands of dollars simply by following what others say. You should know what you are doing and have sufficient knowledge about how it works. You can earn a lot of money trading penny stocks from home. - 23204

About the Author:

Investment in Stocks can pay big profits if done the right way. Penny Stocks can generate the highest profits in the shortest interval of time.

Currency Profile Of British Pound (Part II)

By Ahmad Hassam

The Chancellor of the Exchequer still determines the inflation target for the economy. The monetary policy is dictated by the inflation target set by the Treasury Chancellor despite the independence of the Bank of England (BOE). BOE has the power to change interest rates to levels that it believes will allow it to meet this target.

The Monetary Policy Committee (MPC) meetings are closely followed by the professional forex traders all over the world as GBP is a highly popular currency among the traders. MPC meetings are held on a monthly basis and are closely followed by changes in the monetary policy including changes in the interest rates.

MPC issues statements after each meeting. A Quarterly Inflation Report detailing the MPCs forecasts for the next two years of growth and inflation and its justification for its policy movements is also published.

Another publication, the Quarterly Bulletin also provides information for the past monetary policy movements and analysis of international economic scene and its impact on the British economy. All of these reports are highly informative for professional forex traders.

The main policy tools used by MPC and BOE are the Bank Repo Rate and the Open Market Operations. Bank repo rate is the key rate used in the monetary policy to achieve the Treasurys target inflation rate.

Bank repo rate is the short term interest rate that eventually sets in motions changes in the other short term and long term interest rates in the market. However, there is always a time lag between the policy announcement and the anticipated change in the market interest rates. It maybe a few months to a year! Changes to the bank repo rate affect the commercial banks interest rates for its savers and borrowers. Bank repo rate is set by the BOE for its own operations in the market such as the short term lending activities.

An increase in the Bank Repo Rate means BOE wants to curb the inflation. A decrease would be to stimulate growth and expansion. Changes in the bank repo rate changes the commercial interest rates. In turn these commercial interest rates will affect spending and output in the economy and eventually the costs and prices.

Open market operations means buying or selling of government securities in the open market. Open market operations are done by the BOE to achieve its targeted bank rep rate. While assuring adequate liquidity in the market and continued stability in the banking system, the goal of the open market operations is to implement the changes in the bank repo rate.

Both the bank repo rate and the open market operations are used by the BOE to achieve its broad monetary policy objective. The three main objective of the BOE are to maintain the stability of the financial system, maintain the integrity and value of GBP and seeking to ensure the effectiveness of the UK financial services.

The United Kingdom is a pivotal nation because it bridges the economical, geographical, and ideological divide between the United States and Europe. The monetary policy objectives are met primarily through the open market operations. In order to ensure liquidity in the economy, BOE daily conducts open market operations to buy or sell short term fixed income government instruments. BOE can conduct additional overnight operations as well if this is not sufficient to meet the liquidity needs.

The GBP can be affected more directly by oil prices than other currencies as the United Kingdom is an oil producer. The relationship between oil and the pound is fading, however, because production in the United Kingdoms North Sea oil fields is steadily decreasing. - 23204

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Try 1500 Pips a day Forex Signals. Discover a revolutionary Forex Robot Trading System!

Euro Currency (Part III)

By Ahmad Hassam

ECB publishes monthly bulletin detailing analysis of economic conditions. This bulletin can give important signals to changes in the monetary policy. Forex market participants widely watch the comments by the members of the Governing Council of ECB. These comments frequently tend to move the Euro.

Euro has become the second major global currency. All major euro crosses are highly liquid and heavily traded. Now EUR/USD cross is the most liquid currency. The movements of EUR/USD currency pair are used as the primary gauge to judge the health of both European and the United States health. Since it is the US Dollar fundamentals that have dictated the movements in the EUR/USD pair from 2003-2008, Euro is also known as the anti-dollar.

EUR/JPY and EUR/CHF are very liquid pairs too and are used to judge the health of the Japanese and Swiss economies. EUR/USD and EUR/GBP are great trading currencies as they have tight spreads, make orderly moves and rarely gap.

Euro was launched in 1999. It is still a new currency. Euro has unique risks. There are number of risks unique to the Euro. The most important is the exposure to the economic, political and social development of 15 member countries.

If a member country drops Euro and reverts back to its original national currency because it believes that ECB actions are not in its best interests, it could affect the stability of the entire region although more countries are expected to join EMU.

We can say Euro is a currency without a country. ECB has the power to determine monetary policy for its 15 member countries. With that comes the political pressure of 15 governments. This political pressure frequently tests the actions of ECB.

The present global financial crisis is unlike any in the past. It is deep and may continue for some more years. It started from the sub-prime markets in the US and then spread to the rest of the world. Many big banks became the victims of this financial crisis. However, the rapid response of ECB to the present global financial crisis in the shape of deep liquidity injections has transformed its reputation. The spread between 10 year US Treasuries and 10 year bunds can indicate Euro sentiment.

Another important interest rate is the Euro Interbank Offer Rate (Euribor). This is the rate offered from one large bank to another on interbank term deposits. Traders tend to compare the Euribor futures rate with the Eurodollars futures rate.

Lower spreads between these two interest rates make the European assets less attractive. Higher spreads between the two rates makes the European fixed income assets more attractive. Merger and Acquisition activities between US and European multinationals have important implications for EUR/USD pair. Large deals have often significant short term impact on EUR/USD if in cash.

The largest countries in EMU are Germany, France and Italy. Study of the economic data of these three large countries is also important in determining the market bias for Euro. Important indicators for Euro are Harmonized Index of Consumer prices (HICP), M3, German Unemployment, Preliminary GDP that includes France, Germany and Netherlands, German Industrial Production, Individual country budget deficit. - 23204

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Try Strignano's Forex Signals free. Discover a revolutionary Forex Robot Trading System!