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If you are new to Stock Trading, then follow theses 3 simple steps to begin your journey. Learning is the first step in every industry. So first place to visit on web is Investopedia. There you will find basic to advance information on stock trading. There you will also find stock simulation for your practice. Devote some time to this simulation for serious learning.

Today the number of speculators who try their luck in option trading is visibly revealing a rise. Unlike stocks that may result in a major hit to your financial position, the maximum loss while trading options is limited to the amount you paid for the option.

Trading option is highly challenging wherein a wrong move without adequate knowledge will lead to the loss of the investment. An option is a contract providing the buyer a right to buy or sell an underlying asset on or before a certain date at the agreed price. The specific price is denoted by the term, strike price. The option gets automatically converted into a wasted asset on the expiry of the agreed time frame.

Gold has started to make it’s big move. Now this is your turn to make your move. Gold prices have reached the record level of $1,240 per troy ounce. Gold prices are again on the rise. It is being predicted that gold prices can reach as high as $8,000 per ounce. Gold mining stocks of many junior companies are still selling for pennies a pop. Don’t wait for everyone to start talking about these gold mining stocks. By then it will be too late.

The first step to determining the PE, or Price Earning ratio, is by dividing earnings by the number of shares. Then divide the price of the share by the earnings per share to obtain the PE ratio.

An important financial consideration for examining penny stocks is understanding a stock’s market capitalization. The market cap of a company is the price of a share multiplied by the total number of shares outstanding.

An old-fashioned, but beneficial tool to help penny stock investors screen for hot penny stocks, is to create a penny stock to watch list. Using financial techniques like PE ratios and market cap analysis, can help you produce a list of companies to follow. Here are some simple steps to helping you create your list: Determine 2-3 industries you want to follow and choose 3-5 stocks in that industry.

One analytical tool to help in uncovering the best penny stocks is the “float”. The float of a company is the outstanding stock minus any restricted stock.

I first became interested in Best Penny Alerts when I learned that it exclusively generated penny stock picks. It doesn’t go after the more recognizable stocks and those which go for dollars per share, but instead it sticks to its niche of analyzing low-priced market behavior.

Millions of traders worldwide are embracing online trading strategies programs to do their analytical work for them and based their investing on cold algorithmically crunched market data rather than emotions. This leaves them free to simply invest accordingly without having the time or experience to put towards it themselves.