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Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Securities Industry News

Posted by Gwendolyn James on

The correspondent clearing world keeps getting smaller as firms continue to merge, but E-Trade still sees opportunity in the space–even as its plan to begin clearing for other broker-dealers starting in late 2003 has been postponed for a year.

Michael Curcio, executive vice president of retail brokerage at E-Trade, said that the firm has begun clearing trades for some institutional customers and is busy soliciting other kinds of business.

“Additionally, we are currently in discussions with a variety of firms, including financial advisory firms, hedge funds, money managers and fully disclosed broker-dealers, in preparation for a full launch of correspondent clearing slated for the end of this year,” he said.

The delay stems primarily from E-Trade’s conversion to the ADP SIS securities processing platform from Beta Systems’, a shift that has taken longer than expected. That migration was also expected to be completed by late last year, and now is scheduled to be finalized in the fourth quarter.

An E-Trade spokeswoman described the conversion to ADP as one of the largest technology projects the firm has ever pursued, and noted that E-Trade’s IT staff has been working on a number of other projects at the same time.

In addition to the firm’s continuing expansion into other financial arenas like mortgage and retail banking, and a broadening of its brokerage services beyond its active trading roots, it has recently unveiled initiatives such as providing its mutual fund investors with 50-percent rebates on 12b-1 fees.

It also recently announced a two-second guarantee on executions for trades of up to 500 shares, an offer that is particularly attractive to E-Trade’s more traditional active trading customer base. The move tops five-second guarantees made by competitors Ameritrade and Fidelity Investments late last year.

Ameritrade also got its start in the active trading arena-a history that came home to roost when the Securities and Exchange Commission recently fined it $25 million for the margin peccadilloes of Datek Online, a broker-dealer catering to day traders that it acquired.

Curcio said the two-second guarantee would be available to correspondents, and they would decide whether to market it, in turn, to their customers. The spokeswoman said the same holds true for the 12b-1 rebates.

Curcio noted that the two-second guarantee was the result of E-Trade continuing to develop its front-end offering.

“We’ve continued to improve our proprietary order routing technologies, which allow us to deliver the two-second guarantee,” he said, adding that orders are routed to a variety of market centers, including its own.

The firm chose the 500-share limit because that “represents the typical order flow for self-directed investors.” E-Trade is providing the guarantee to all of its customers, which receive trade confirmations detailing the execution speed of their orders within 24 hours. If E-Trade fails to execute a trade within two seconds, the firm will wave commissions on future trades.

Curcio declined to name existing institutional customers or other clearing prospects, and he emphasized that the firm plans to offer a full-range of correspondent services.

“Given the superiority of our platform, we feel we will have a competitive advantage across the board compared to other players in this space,” he said.

E-Trade’s decision to switch to ADP coincided with the firm’s plans to consolidate its more than 10 back offices worldwide into one primary facility in the United States and two others, in London and Hong Kong.

ADP’s scope also extends beyond securities to other financial arenas, allowing E-Trade’s banking unit, for example, to handle the cash management business arising from its brokerage unit.

E-Trade had used Beta since 1996 for functions like books and records, order routing and order vetting. E-Trade will continue to handle most of the back-office functions that touch customers, like customer information and front-line vetting, through its own clearing operations.

Copyright 2004 Thomson Media Inc. All Rights Reserved.

My Blog

Benefits of Penny Stock Trading

Posted by Gwendolyn James on

If you are starting your business as a stock trader, investing in penny stock is a good option. Penny stocks are available at relatively lower price, which is good for beginners. Even after having risk of illegal companies offering such stocks, the chances of earning good returns are more significant. But investors should know the right time of buying and selling the stock.

Following are some benefits of trading penny stocks.

  1. Lesser price value per share

Penny stocks are sold for low price as dollar 5 per share. This is very lucrative option for new investors as they purchase more shares with small capital investment. This gives chance of exploring the stock market to new investors with few dollar investments. Like if price of penny stock drops, there is no worry as there is no considerable loss incurred.

Benefits of Penny Stock Trading
  1. Less risk of losing large amount of money

As penny stocks are usually available at very low price even then it is not advisable for investors to put his all money into penny stock trading. Investor should not invest more than he or she can afford to lose. In this manner investor doesn’t have to bear significant losses if prices drop.

  1. Purchase more shares at lower prices.

If you are really confident about certain share of stocks, you can purchase more shares as price per share is low. In this manner, investors can buy more than one type of penny stock shares to diversify the risk. This will give you more options of stock trading, which increases the chances of profitability. Investors surely get some gain from any one source of investment. This can be possible only if you as investor spend some time on research and to study the stock market. One should know the fact of particular company and its offered stock shares.

My Blog

Penny Stock Trading System

Posted by Gwendolyn James on

Penny stocks are the shares that are offered to public by tiny or new organization that can’t meet the requirements of major stock exchanges. Many traders are deal in such shares as they want to start with little investment. Always keep in mind there is high risk involved because their value can lower down to zero anytime.

To pick correct penny stock, you need to have unbiased information of company’s business structure. As you do like while investing in other stocks, you need to understand type of business particular company are involved with and their future business plans.

It’s uncommon that the companies dealing in penny stuck shares have complicated businesses, more likely they are simple business that is easy to understand and research. Companies usually offer such shares for startup capital for their business. There are also some honest companies who have huge potential

Penny Stock Trading System

Penny stocks are considered as one of the high risk investment options as per SEC. The financial reporting rules for penny stocks are not as stricter as they are for other shares that are listed on national stock exchanges. Pink sheet one of the types of penny stocks has no regulation at all for financial reporting.

Due to less or no reporting requirements, trading penny stocks alerts becomes tricky, and chances of fraud increased. Fraudulent activities prevailing in the penny stock market can easily influence the share price. This activity is known as Pump and Dump. After all these facts penny stocks certainly have potential of making huge profits. You can invest in shares of small companies that have potential to make money in future. Always remember that choosing right pick can give you good returns. If you suffer loss on some of penny stocks, other successful move in penny stocks can compensate all your losses.

My Blog

Practical Guide to Trade Penny Stocks

Posted by Gwendolyn James on

Trading penny stocks and making money through it can be difficult. The person who is thinking of entering in this trade need to be aware of the fact that there is high risk involved in penny stock trading. There is no doubt penny stocks is most high risk and high reward trading on the stock market. Some people have been earned huge profits through trading such stocks.

Many people think that penny stocks value less than a dollar but normally these stocks are less than five dollars per share. You can do penny stock trading through a broker or through an online stock exchange.

Small cap stock trading can make you lot of money, but for this you need to do complete research like reading market trends and companies financial position etc. Sometimes stocks show up, rise and few days later disappear. In case of small cap shares risk is always there that stock can disappear anytime. This is why one needs to determine right time of buying and selling such stocks. Learning right techniques of trading penny stocks can help you to make money.

Practical Guide to Trade Penny Stocks

Penny stock trading depends on your own plan of investments. Stock trading is process of combining your experience, training and investment capacity. It’s essential that if you consider penny stock day trading, you should get some expert knowledge through reliable source. Before investing your hard earned money into penny stocks make sure to learn stock trading tactics.

But it is always very tricky to choose best penny stocks; it takes time, knowledge, practice and experience. Also luck also plays important role for getting success in penny stock trading. The people who are new to penny stock market should understand the stock market first, gain knowledge and learn the most useful ways to trade penny stocks.