The Penny Stock Prophet
Many stock traders would like to bear the title The Penny Stock Prophet but in reality most just do not have what it takes.
Predicting the behaviour of Stocks and of the market has been aspired to since the stock markets were established.
Penny stocks are stocks traded under $5 on smaller exchanges and are sometimes referred to as micro cap investments. Do not be fooled by the small price of the stocks as enormous gains and huge losses are possible in this volatile arena.
One of the reasons it is so difficult to predict small stocks is the lack of reliable information or even manipulated information distributed by the companies representing the shares. Many company shares traded for pennies have been previously declined or removed from a major stock exchange such as NASDAQ. Sometimes this is due to lack of consistent and reliable reporting of company activity.
Veteran investors know where to turn for information on current shares and have additional tools to cross check an analyse the performance of trades over time. Experienced traders also have the accumulated understanding of how the stock markets behave.
Information and calculations on share prices, company movements and expected gains most often do not comprise the entire equation for picking penny stocks to invest. A true Penny Stock Prophet will also have a proven algorithm to assist in his decision making.
A variety of trading tools are commercially available. You may also find free information spread judiciously across the Internet. When selecting your information source it is important to verify that the website does not have a conflict of interest with the recommended stocks. such disclosure is required by law, but may not be easily found.
One of the variables associated with stock trading is the main force driving stock share prices, also referred to as Psychological Support Level (PSL). This variable helps identify undervalued stocks.
PSL is similar to formulas currently used by mathematicians to predict and determine how human behavior affects population growth, crime and even terrorism called Psychometric Science.
Indeed it would seem The Penny Stock Prophet should master the stock trading variables discussed in this article.
Trading does not have to be a headache. There are a lot of resources out there, the trick is selecting the right one. For more information on the penny stock prophet and on penny stocks recommendations please stop by my blog.
Dustin Article Source: http://EzineArticles.com/?expert=Dustin_Hoffman Hoffman, Dustin "The Penny Stock Prophet." The Penny Stock Prophet http://ezinearticles.com/?The-Penny-Stock-Prophet&id=3862897