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One of the most underrated and affordable investment vehicles has to be trading penny stocks. I think what most traders love about penny stocks (including myself) is how much bang you get for your buck. There have been instances when penny stocks have gone up as much 10 times (1000%) in their value.

Nowadays, traders can place their orders via the internet, and agents normally put them unswervingly in touch with the electronic trading system. Consequently, online trading has become more and more popular, fueled by the new automatic trading tools such as trading bots which have become available.

Cheap/penny stocks are the sole focus in the stock market by many day traders? Why? Because it takes much less trading influence to send a lower priced stock soaring in value in the short term, enabling you to double or triple your investments at a lightning quick pace. The key is obviously differentiating between the bad and good cheap stocks to trade accordingly. One system of finding good cheap stocks has worked better for me than any other and is beginning to become embraced by more and more traders each and every day for realizing their financial independence.

In many respects, buying and selling stocks have the same degree of difficulty. Either way, you are exposing the investment portfolio to substantial losses and profits. So when buying and selling stocks, it is very important to carefully consider your decision before taking action.

There are many ways to answer the question “What stocks should I buy?” You can pick from a list of equities, industries or companies. This is a valid way to ensure that you are picking the best possible investments in shares of stocks.

Small cap stock picks are defined in many ways. First, it is defined according to the price per share. Under SEC rules, a share of stock is considered a penny stock when it is trading for $5 or less per share.

There are two classes of traders – those who look for the best shares to purchase and those who look for the best shares to sell. You can consider the former as regular traders while the latter are the short sellers. But before you can even consider short selling, you must learn how to sell short stocks.

Many traders and investors still buy and sell stocks with the broker as the middleman. However, if your concern is how to purchase stocks without a broker, then you will find the answers below. Of course, this presupposes that you have the necessary knowledge, experience and information about the stock market.

Investing software has become a hot commodity amongst traders looking to realize their financial independence in the stock market. This is technology which sniffs out the origins of trends in individual stocks so that you can invest accordingly, all of the work is done for you so you don’t have to have to have any previous experience in the stock market to see real gains come out of it.

There are thousands of stocks which are listed in the stock exchange but are hardly ever traded. Such stocks are also valued much below their face values and are usually treated like garbage stocks. Seasoned stock traders always steer clear of these ‘Penny Stocks’ as they are called.