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Five simple ideas to keep your trades in the black. Apply these ideas to each and every trade and you will be on your way to becoming a professional trader that consistently makes money.

This month we’ll begin a series of articles on Private Placements: Selling Your Stock without Filing a Registration Statement with the SEC. If you are contemplating a GoPublicDirect transaction as opposed to a reverse merger with a public shell, this is important for two reasons: One: It gets you the necessary number of shareholders to obtain a Ticker Symbol. Two: It gives you the opportunity to raise funds prior to filing a registration statement on Form S-1 with the SEC.

Before going in depth about penny stock trading, it is vital to have knowledge about what a penny stock really is. Penny stocks, in simpler terms are low-priced stocks. According to the name, some may think that penny stocks cost just a single penny. However, this is hardly ever the case. Generally, a penny stock is any stock that is sold for $5 or less.

After months of going nowhere fast, the stock market is looking like it wants to go higher. The S&P is now within striking range of summer 2011 highs after hitting a low of 1074 back in October.

If you are a professional trader or in any way related with OTC markets or Pink Sheets then you must have heard about the penny stocks and high returns that they promise. The low price of micro cap stocks is a very important factor for high returns associated with them.

There is no approved definition of penny stocks. This term consist of two words: penny and stocks. The word stock means the original capital invested in the business by the founder whereas the word penny means the smallest denomination in a currency system.

The literal meaning of the word ‘penny stock’ is any trade for pennies or those that trade for under $5. Previously, this kind of trading had a bad name because it was generally an investment made at bargain prices for undervalued, undiscovered or most of all, over-looked things.

People in today’s world are very eager to make cash. They expect easy and quick money. For this, many people make investments, and the most risky investment is to invest in the stock market. A stock market investment faces drastic changes.

Keeping a lump sum of money in a bank account is not a good wealth-building method. If you decide not to purchase any more properties, another investment option is shares. When you buy the shares of a company, you are becoming part owner of that enterprise.

Those who were caught by surprise by Friday’s sudden rally on the bourses would be glad to hear that the sharp pick-up was backed by lots of hard cash being unlocked by foreign institutional investors. Once again the cheer leader was Infosys which found a new fan in a Japanese FII which is reported to have bought nearly 4.50 lakh shares of the company’s stock in the past week.