Solvency ratio

A penny stock is a stock that trades at a low price mainly between http://news.goldgrey.org/gold-news/ one and five dollars. It does not trade within the major market exchanges like the New York Stock Exchange, National Association of Securities Dealers Automated Quotation System (NASDAQ) or the American Stock Exchange.

The traditional way of earning money would be to get a job and to work based on your expertise or trained skill. Your services or the products you make are rewarded with a salary or a profit for the products sold. However, with the emergence of financial systems, more and more ways of earning money - without doing any real work - have been created. This is through investing in stocks and other markets. One such popular market is the Free Forex trading system.

First, let's take a look at how much money you can currently afford to invest in stocks. Do you have savings that you can use? If so, great! However, you don't want to cut yourself short when you tie your money up in an investment. What were your savings originally for?

There's a fairly large subset of humanity who can never be successful at stockmarket investment but not because they're not clever enough. The trouble is that when the going gets tough - and you can guarantee that at some point it will - most people can't take the heat.

Too many people try to memorize what it going on with stock trading and this leaves them frustrated. There are simply too many variables that go on for what you memorize today to end up being true tomorrow. Being prepared for such changes though is what will give you the upper hand with your trades. While you can't always predict the market with 100% certainty, you can be confident in what will occur due to key indicators and patterns.

Then off to the internet to get the wisdom of the collective. That is a dead end and their information is defective. In fact Day trading is a Trillion dollar a year business, do you think anybody on the internet is going to give you day trading advise that is correct? Almost every thing on the internet that you read about day trading, or trading stocks at all is false, and designed to help remove your money from your wallet.

Use all the information and knowledge you gained from the previous steps to set up a strategy. Refine that strategy over time, but stick to it. This might seem contradictory, but if you make smart decisions, it will work out.

If you add one more moving average to the mix, you can create a simple trading system. This average should have the shortest period of all. Say, 20 days. We will use the other two moving averages to determine the trend and the new moving average to trigger the entry in our system. Namely, when this average crosses the 50 period moving average on the way up, we would open our position in the market. We will liquidate it when, for instance, the stock price closes below the main moving average, the one with the period of 100 or 200 days depending on how strong trending a stock you want to choose. Other exit strategies can be considered as well, but it is certainly a good idea to let the profits run and so too tight a stop-loss may not be advisable. Too generous one is not good either, though.