Trading against SMART Money

Open your Trading account in mintues with Zerodha

When you are looking to trade a microcap-penny stock the most vital key to your success will be discipline. It is so easy to be un-disciplined when trading these types of stocks because the thrill of the fast buck is a great distraction.

Almost everyone who is in the stock market has a few long term investments. Maybe they bought a few ETFs that they believe will go up in the long term. But along with your investments it is a good idea to place some short term trades.

Today we’re gonna show you how you can make profitable stock picks to bulk up your bank account. We’re looking specifically at penny stocks – an exciting way to make money when you know what you’re doing.

Considering the economic weather, the stock market might be the last place that people would like to put their money right now. Due to sky high prices, bailouts of major institutions, more and more people are turning to learning the basis of beginner stock trading online for a better concept of the realization of what is taking place.

Penny stocks are the share offerings of companies that are new, or too small to have a stock exchange listing on the large stock exchanges. These stocks can be of interest to investors due to the small initial investment required, and the possibility of good returns.

The market has fallen over 40% since it’s hay day back in early 2008. 401k plans has evaporated, there is talk of another Great Depression by most of the big media outlets, and the unemployment rate is rising at the fastest pace we have seen in two generations. This is not to mention that the US foreclosure rate is higher than we have ever seen, the state of Florida has 7.

Today we’re looking at penny stocks and what you can do to make money trading in them. It’s an exciting way to make some great money once you know what you’re doing.

Most people think that buying stocks is far more risky than putting their money in the bank. If you have your dream job and you have worked hard for it in order to gain appreciation from your clients or your employers. It is hard for you to save money because of inflation, peers’ pressure and strong temptation to spend money on things. You have tried to minimize your spending but you are still trapped in the rat race.

Picking stocks like Warren Buffett should be a major desire of any trading investor who wants to become a guru in trading stocks and making billions from the stock market. In fact investment is a calculated risk.

A lot of stock market investors use fundamental analysis to find potential companies to invest in and then use technical analysis to help them with their entry and exit points. However to maximize your potential returns, there are two key technical indicators that I think every investor should be aware of.