by Alley Bancroft

In the stock market people are scrambling to get every advantage that they can. Markets are down 40% from the highs just a year ago. Can America be facing financial turmoil, a long recession or one of the best buying seasons in history?

During this time of uncertainty we have seen markets of extreme volatility. This is the perfect way to watch your portfolio shrink to fast to bear; also it is a time to watch your portfolio explode with huge gains. Personally I have witnessed gains of 200- 300% in just a few days!

History has told us many things during times of recession, but there is one trend that I like to keep a keen eye on. After each major downturn in the market there is a always a rebound, and this rebound first shows up in the penny stocks. Penny stocks forecast a turnaround before …

by James Brumley

Finding great penny stocks isnt rocket science, especially with the number of websites that explain how to spot and trade them. If you want to handpick your stocks, use all of your available resources.

While these websites serve as great resources, its not quite as easy as looking for fundamentally sound companies and technical analysis to trigger buys and sells. Top penny stock traders know how to spot the best-of-the-best and improve performance dramatically.

Here are four higher-level concepts to help you screen out the mediocre or low-odds penny stock trades you might have otherwise taken.

Insider Buying or Ownership ” Is management putting their own money where their mouth is?

Not that this is guaranteed to prevent a stock from collapsing, but management of a company can be highly motivated when theyre also significant investors of their company. If instead theyre selling some or all of their stock (without …

by John Monroe

Penny stock and small cap stock investors may want to get off the sidelines and into the game about right now, if the market has indeed made the bottom many experts think it has. Why? Because the early part of bull markets tend to favor these smaller companies, and by extension tend to reward forward-thinking stock speculators.

But has the market actually hit bottom? Yes, we think it has. We’re not naive to the lingering challenges the economy is facing. But, when the market’s average P/E gets close to single-digit levels, it’s historically been at or near a major bottom.

The argument against a market bottom already being made are rising unemployment, an economic retraction, and plenty of net losses from major corporations. All are valid arguments, but none of those symptoms have been permanent in the past. Successful investors simply recognize different stages of the market’s cycle, …

by John Monroe

Traders have given them many names, like bulletin board stocks, micro caps, penny stocks, and others. The attraction to them, however, is all built around the same premise ” that the market is on the verge of deciding a particular company is the next big thing. There are a few lessons to keep in mind about trading small cap stocks though.

While volumes of books have been written on the matter, five core principles may be more than enough to really establish a framework for success in the penny stock market.

First, the very best small cap traders tend to at least do one important task very well ” they can differentiate a short-term trade and a long-term investment. Mechanically both trades may start and end the same way. Mixing and matching the underlying philosophies, however, often leads to frustration.

Secondly, micro cap trading requires becoming comfortable with …

by R. Branson

If you are looking for a way to diversify your portfolio and increase your short term profits, penny stocks can make an excellent choice. These low value shares of stock can easily double and triple their value in mere minutes and can do so many times throughout the day. Although, it is important to remember that these pennies can also be a risky investment for the fact the can drop in value just as quickly.

Why are they called pennies?

In all simplicity, a penny stock is a share of company stock whose value is extremely low and usually falls well under the $5 per share mark. In only a matter of minutes, these shares can easily double or triple in value.

Why should I trade penny stocks?

Because of their low value, slight influxes in their value can allow for greater profits. A penny stock that is worth a …

Editor’s Note: This is the first of a two-part series on “below-the-radar-screen” stocks. Next up: Penny stocks. By Steve Waters Contributing Writer Most investors have heard the term “pink sheets” as a reference to stocks. But how many know what they are. Pink sheets are companies that are traded over-the-counter and that aren’t part of any major stock exchange. But that doesn’t mean they are any less valuable than traditional stocks, exchange-traded funds (ETFs) or mutual funds. In fact, expanding your portfolio with pink sheet companies can be extremely lucrative, but you have to make the right moves to rake in the big profits. Let me explain… Pink Sheet Basics Pink sheets began as listings on an electronic database provided by Pink Sheets LLC, and are so called because the quotes were originally printed on pink sheets of paper. Companies that are involved in this kind of over-the-counter trading fall ...