Investing – Home Prices fall in majority of the biggest markets

If you have owned a home, or any piece of residential real estate including condos, and vacation homes than you are aware of the run up in prices that occurred for a five year period that ended more than a year ago. In terms of investing, owning a home for half a century has been a wonderful way to build wealth. It is one of the few investing methods where you could actually live in your investment, while it increased in value. Most investors are not aware that from World War II until last year, there was never a single year where home prices fell on a national level, until last year that is.

Homeowners have counted on a steady annual increase in the price of the house they were living in to create a wealth effect. For many, it was their only source of forced savings. It was also a participation in the American dream – owning your own home, and living in it.

Studies are now available which show that at the end of last year, a number of housing markets declined. Actually, 149 different markets experienced the decline. Hardest hit were the East and West Coast of the US, and the Northeast cities.

In you were in Florida at all last year, it was impossible not to see thousands of super cranes going about the process of building 20 to 50 story condominiums. The vast majority of these condos were bought on speculation with the buyer signing the contract never anticipating the need to close on the contract.

We have not seen a mass number of walkways yet. These are people that signed non-recourse agreements with the builder, and are in a position to walk away from the agreement without having to write a check. They will forfeit the deposit they put down however.

Florida may well be the state taking the biggest hit in real estate. Sarasota was down 18% by year-end, while Melbourne was experiencing a 17 % decline. We are talking about actual prices being down. On a national level prices were down 2.7%.

Many analysts haven't quite figured out what this means? Are motivated sellers holding onto residences longer in anticipation of getting their higher price later on? Are some sellers withdrawing their homes from the market, or perhaps not putting them on the market at all, awaiting prices firming up, perhaps later this year?

What about sales themselves?

In addition to prices being down, there are less actual sales taking place, which is leading to a larger inventory of unsold homes. Forty different states have reported a decline in the number of sales taking place. On a national level the number comes to a 10.1% decline in the actual number of homes being sold regardless of price. Three different localities have reported physical sales being down more than 30%. They include Nevada, Florida, and the District of Columbia. Virginia reported a 20% decline.

There were six states that reported an increase in the number of sales taking place – that's six out of fifty. They included Alaska, Arkansas, Illinois, Kentucky, Mississippi, and Texas. There was no impact on Utah where sales were flat.

What you really need to look at is the VACANCY rate. The vacancy rate is the number of homes on the market where nobody is living in them, and they are for sale. On a national level, this number always seems to hover around 2%. At year-end, the number went to 2.7%. This is a massive increase because 2.7% is the highest it has been to in 50 years, and that's only because they started figuring out the number 50 years ago.

You've got owners out there who are just waiting, and won't sell at a lower price than the price they want. This accounts for the increased vacancy rate. On top of that you have another issue. There does come a point where a seller may have to sell. He will take what he can get, even though it establishes a new lower base from which everything else can trade.

Once this base is established than other buyers and sellers see it. The seller reacts with alarm. The buyer reacts with glee, but trepidation also because the buyer doesn't know if prices are going lower still. This is how panic selling sets in, and no buyers. The buyers walk away, waiting for still lower prices

It's the same as the stock market, sellers once they have seen higher prices, don't want to sell at a lower price. Many prefer to wait, hoping, and it is hope that the price will come back. Only the forced seller will do the deal. It might be an estate, or divorce settlement, or a housing relocation that forces the actual sale. It doesn't matter, once that sale hits the marketplace for all to see, there is a new adjustment in the real estate market.

Where's the BIAS Now – UP or DOWN?

It is difficult to tell if the year-end numbers have wrenched out the secular excesses that have taken place in the real estate markets in the last five years while everything went crazy on the upside. There may be more to go. If you look at the stock market, most of the house builders bottomed out several months ago when they all made new multi-year lows. Since then, they have rallied nicely. If the real estate market has more to go on the downside, than these stocks will probably have to build double-bottoms before the decline is actually over.

If however, the vacancy rate picks up from here, and price declines have seen their bottom, than most of the damage is behind us. The economy overall and interest rate seem fine, so we don't expect damage coming from a decline in GDP this year. What seems to be happening is that we are looking at a wearing down of the excesses produced since the late 1990's in residential real estate in this country?

The geographical segments of the country that experienced the most increases in real estate prices are now the ones experiencing the declines. It's the same story, and the story never changes, only the areas of the country being affected changes. Our work shows that prices, and vacancy rates have a way to go yet on the downside. At the same time, we believe the housing stocks may decline, but the absolute bottoms established months ago will hold. We are already off those bottoms.

Goodbye and Good Luck

Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at Pace University, NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtB

Value Investing at StocksAtB

Spread Betting - 'Stake A Penny, Win A Pound'

Similar in some respects to the CFD, spread betting can be done on a large number of stocks, and major Stock Indexes such as the FTSE 100 Index, or Dow Jones Index, or the S&P 500 index, etc.

An ideal website to visit, to start learning about spread betting is who offer a very comprehensive quick-learning page on their site.

We start with a few opening basics about spread betting…

Firstly, do not be put off by the word 'bet' which carries for many people, a number of totally unnecessary, negative connotations and preconceptions...

Spread betting is not like traditional betting, where a 'bookmaker' gives you 'odds' and usually ends up taking 100% of your original outlay. Spread betting is, in a nutshell, the offering of a 'middleman' in a cross-trade (very similar to CFDs) between one party (you) and another party (another person like you who takes an opposite view on a stock or index price). To explain further...

For example, if you bet that the FTSE index will go up, then, unlike traditional betting, you are not betting against the dealer, but someone else (another trader just like you who could be on the other side of the planet) who has an opposite view of the market (he or she obviously thinks the FTSE is going to go down, while you judge that it will go up). For every pound won, there is a pound lost (or for every winner there is a loser, as the saying goes) - as in every other stock market transaction…

The spread-bet dealer is therefore simply an intermediary (rather like a broker) between the two parties. He is neutral (there is a tremendous amount of money to be made staying neutral in this business). This is as simple as it gets, and creates a tradable marketplace where the spread bet dealer - a middleman - employs a rather sophisticated computer system which matching the buy/sell orders throughout the trading day (even overnight in some cases).

So, how do spread bets work?

Firstly, you deal through a spread bet-dealer. There are a number of these in the city of London. These spread dealers will send you a full, detailed, easy-to-understand information package which covers just about everything you need to know (including many trading examples and illustrations, etc.) in order to start trading spread bets…

Similar in some respects to 'CFD' trading, you can use spread betting to back both rising and falling markets. It is an ideal instrument (like the CFD) for trading the indexes, which we cover, when the index-trend is down, as well as up.

For instance, with the FTSE index, you can bet anything from £1 (even 1p from some dealers!) to £250 per point (ie; £10, £20, £30, etc; up to £250)… For every point the market moves in your favor (net of the initial spread), you gain that amount, eg; £10 per point, or £20 per point.

This now closes on our discussion regarding 'stock' trading. As prescribed, you may utilize our Charting Tools screen, within the Click Volume software, in order to trade individual stocks. Simply click on "Charting-Tools" from the left hand menu, enter any stock symbol (or look it up using our Symbol Lookup button/feature), and hit "DRAW" to view the stock chart and Trend Index below.

Remember again, the Trend Index strategy works best with the large, high volume, liquid [blue-chip] stocks. Below are a list of some of the most popular blue chip stocks...

UK: Abbey National, AstraZeneca, Barclays, BP, BT, CGNU, Diageo, Glaxo Smithkline, GUS, HBOS, HSBC Holdings, Legal & General, Lloyds TSB Group, Marconi, Marks & Spencer, mmO2, Prudential, Royal Bank of Scotland, Sainsbury, Shell, Tesco, Unilever, and Vodafone Group.

USA: American International Group, Amgen, AOL Time Warner, AT&T, Bristol Myers Squibb, Cisco Systems, Citigroup, EMC Corporation, Exxon Mobil, General Electric, Intel Corporation, IBM, JDS Uniphase, Juniper Networks Inc., Merck & Co, Microsoft, Oracle Corporation, Pfizer, Qualcomm, Sun Microsystems, and Wal-Mart Stores Inc.

Note: It is up to you whether you wish to trade stocks, indexes, or both. Our recommendation is that you find the market you like, and ultimately focus on this 100%. On the next page, we return back to our own favorite market of choice - the major indexes...

More information is available at a UK financial website which specialises in offering free guides and information on stockmarket products such as financial spread betting. The site introduces you to the workings, markets, and bets offered in financial spread betting.

Benefits of Online Stock Trading

The new fad is online stock trading. Online stock trading refers to buying and/or sell securities by the stock investor himself on the Internet as compared to calling the broker and having him or her place the order. There are many benefits to online stock trading that I will discuss here.

Convenience/Quickness - Online stock trading allows you to place your orders from anywhere and at any time. The only piece of equipment needed is a computer. When an investor does online stock trading they save themselves time and money. Calling your broker takes longer and costs the investor more.

Control - With online stock trading the investor has full control of his or her investments. With online stock trading there is no having to explain to your stock broker on why and how long you plan to hold your position.

Efficiency - With online stock trading you can get account balance, positions, real time quote and other information instantly while when calling you broker would take much longer to receive this information.

Online stock trading allows all investors to take advantage of real time news and market movements. In the past when a stock investor had to call his broker it would take much longer to buy or sell and investors could not take advantage.

Article was written by David Hot Penny stocks

David member of Penny Stocks

Why Forex Training Courses Yield Better Profits

Are you interested in becoming an active trader in the world's largest financial market? If you are, you will be looking to trade the foreign exchange market, also commonly referred to as the forex. In recent years, since the late 1990's, brokerage firms have made it possible for "everyday" individuals, just like you, to make money with the exchange or the trading of foreign currencies. Although brokerage firms do provide you with needed assistance, it is advised that you know the ins and outs of the forex yourself. That is why it is advised that you take a forex training course. In fact, the successful completion of a forex training course is likely to yield better profits.

When it comes to forex training courses, there are a large number of wannabe forex traders who wonder if it is really necessary to undergo training. Yes, you could start trading the forex market right away, but, when doing so, you will be taking a large risk. Although the foreign exchange market has been profitable to many traders, there are also those who have lost their hard earned money. To help ensure that you profit from the forex market, not suffer a loss, you are advised to closely examine forex training courses to reap their benefits.

By taking a forex training course, you may not only learn how to successfully trade the forex market, but you may also learn more about it. While you might not assume that the history of the foreign exchange market is important, it is. Familiarizing yourself with the history of the foreign exchange market will not only better help you understand how the forex came about, but it will also give you a better appreciation for the market and the ability to exchange foreign currencies. After all, the ability to exchange foreign currencies is what enables you to yield a profit.

Forex training course come in a number of different formats. When examining available courses, you will see that there are forex training courses that are designed for beginners. Beginners are those who are essentially completely unfamiliar with the forex market and forex trading. If you have a small amount of experience with the forex market or knowledge of how to start trading, an intermediate forex training course may be your best option. There are also several advanced courses to help experienced traders refine their skills. Whatever level of knowledge or experience you have, you should be able to find a forex training course that can help you increase your knowledge and wealth

One of the many aspects of a forex training course that may help to yield better profits is live market lessons. Live market lessons are, perhaps, the most essential phase of an effective forex training course. Live market lessons involve studying the foreign exchange market in real-time. This real-time learning is ideal because is allows you to examine situations on the forex that may arise, should you later decide to trade it. Being able to examine the forex market in real-time is training at its best. You can read a forex training course book or watch a video a hundred times, but never walk away with the knowledge or firsthand experience that comes along with live market lessons. Participating in a forex training course that includes a live market lesson is the surest way to yield better profits.

Currently, there are hundreds, if not thousands, of forex training courses available for you to choose from. What you may not know is that many of these training courses are offered by brokerage firms; brokerage firms that are looking to acquire you as a client. While it is true that any forex training course is better than no forex training course, why not get yourself the best? When searching for a forex training course, you are advised to examine F F takes pride in being pure educators, not brokers. For you, this means better training. You will receive the highest level of forex training possible, as the goal is to educate you on the forex market, not acquire you as a client.

In short, to yield better profits, you are urged to examine forex training courses, particular the courses offered by F Why start trading the forex without the proper training and experience, especially when it is so easy to find a forex training course that can not only prepare you for trading, but help you yield better profits.

Who wouldn't want proper Forex Training with a qualified expert? We specialize in Forex Trading Education for the novice and expert. We feel that it is never too late to make your mark in the Forex market.

Why Trading The Forex Is A New Trend

The foreign exchange market, otherwise known as the forex, was first established in 1971. Despite being in existence for over 35 years, the forex just recently started to become a new and popular trend; a popular trend that many are hoping to become a part of.

Around the late 1990's, the forex market reached a critical point in its history. It was then that forex brokerage firms first opened to the general public. This opening gave everyone the opportunity to trade the forex. Before that point, the foreign exchange market was only for large financial institutions, corporations (particularly those that did business overseas) and central banks. Since the opening of forex brokerage firms to the public, a large number of individuals, from all walks of life, have started trading the forex. This alone has made trading the forex one of today's "hottest" trends.

In conjunction with brokerage firms opening to the general public, the low-cost of trading on the foreign exchange market is just another one of many reason why trading the forex market is a new trend, especially among those who never imagined themselves trading. Although brokerage firms and brokers vary, you will find that a large number of forex brokers, in the United States, do not charge transaction fees. These transaction fees are also commonly referred to as commissions. The forex also has minimal trading requirements. This not only means that you can trade as often as you would like to, but it also means that you can trade with much less money than you would in other markets. This is great for those who are interested in experimenting with the forex market without risking large amounts of capital.

Another reason why forex trading is considered a new trend is because of around-the-clock trading. The foreign exchange market has markets all around the world. For instance, markets can be found in London, the United States, and Hong Kong. Due to different time zones, the forex is open for trading twenty-four hours a day, five days a week. In the Untied States and all around the world, many individuals work a traditional nine to five job. A nine to five job makes it difficult, if not impossible, to trade the stock market. With around the clock trading, time isn't an issue with the forex. The ability to trade on your own schedule, whether it be early in the morning or late at night, is one of the many reasons why trading the forex market is being considered one of the "hottest," new trends today.

Of course, the ability to make money or yield a profit is the greatest reason as to why trading the forex is a new trend. The foreign exchange market or the forex involves the exchange of foreign currencies. With leveraging floating exchange rates, the potential to yield a profit is high. As previously mentioned, the forex market has very small trading minimums. That is why many individuals decide to test the forex market waters. To their surprise, many are able to make a small profit. That small profit often leads to more trades and the opportunity to yield even large profits. While there are risks associated with trading the forex, as with the stock market, many of the risks can be mitigated as long as you and other traders know what you are doing.

Speaking of knowing what you are doing, forex training courses are another one of the many reasons why forex trading is a new trend. Forex training courses, although they come in a number of different formats, are designed to educate hopeful traders, like you. Many training courses, such as the training courses offered by F rely on different approaches or phases, such as online forex training, onsite forex training, and live market training. Extensive training courses, similar to the ones offered by F are ideal as they allow you to examine and explore trading the forex at your own pace. With most forex training courses at least twenty-hours long, there is more than enough time to adequately familiarize yourself with forex trading. This familiarization is what gives many hopeful traders the confidence needed to trade the forex, which only further increases its popularity, making it a trend.

Since it is apparent to see that trading the forex is a new trend, are you capitalizing on that trend? If not, you are urged to examine trading the forex. After a close examination, you will not only see the many reasons as to why you should, but the many rewards of doing so.

Who wouldn't want proper Forex Training with a qualified expert? We specialize in Forex Trading Education for the novice and expert. We feel that it is never too late to make your mark in the Forex market.

An Investing Secret - Here's Why Buy And Hold Does Not Produce The Results You Think They Will

Its so easy today to invest in the stock market. Place your order, press submit and you instantly can become a shareholder. Ask any officer of a publicly traded company, and they will tell you, they love when shareholders buy and hold. This helps the stock retain its value (instead of selling their shares like everyone else, they hold, avoiding an even larger drop in share price). While you probably wouldn't consider driving downhill without brakes, why would you buy and hold onto a company that is losing you money? This is where an investment plan comes in.

Here's Why Buy And Hold Does Not Produce The Results You Think They Will

A stop loss order is basically a set of directions for the sale of your stock at a certain point-generally when they fall below a certain price. This isn't a guarantee against loss but it is a very important line of protection. You can choose the stop loss point based on a percentage drop in the price or even certain patterns. Some brokers will even set your stock-loss price higher as the value of your stock rises in order to protect the maximum possible profit on your behalf.

Folks who reason that the buy and hold method of investing works, will simply point to Warren Buffet. The world's most effective investor has the reputation of someone who lives and breathes the buy and hold strategy. Unfortunately, its not totally factual. Unlike you and I, Mr Buffet is in a position to buy a controlling interest in the companies that he is investing in. This gives him the power to help pressure and make serious decisions about who will make the decisions in the boardroom. As a stakeholder of the company, he has the ability to make companies more efficient by removing dead weight. Any decisions that the company makes that call for stakeholder approval will have to be agreed to by Mr Buffet in order for them to go through. So, unless you are able to purchase as many shares as him, you're only option is to sell if you don't like the bearing the company is moving in.

When public companies declare bankruptcy it is quite rare that stockholders will receive any kind of compensation whatsoever. Stop-loss orders are a great way to prevent this from occurring.

There are some 'loss-recovery' methods that can be taken. The best thing you can do in order to protect your investment is to put a stop-loss order on the stocks your purchase. You can even select the percentages at which you would like the order to kick in. If you are hoping to protect your investment a stop-loss order is the most likely method for doing so.

Here's a great saying that should help you remember the important of a stop-loss order: "If the smart money has sold and moved on, what type of money still owns the stock?"

Get the investors edge by learning more about municipal bond funds, investing groups, and stock market trading. Get the edge you need to become a better investor and trader.

Penny Stocks - Short Term Stock Trading

For trading on a short-term method for trading daily price movements that relies entirely on odds and percentages . It is a method as opposed to a system. Very few people can blindly follow a system, though many find it easier to be discretionary in a systematic way.

Because this short-term swing technique generates frequent trades, it is important to know the "correct plays," to lock in profits, and to seek the "true trend." Taking a loss is merely playing for better position. One trades strictly for probable future results, not for what the market might do.

To know the "correct play" is to know whether to buy or sell first, to exit or hold. Trades are based on "objective points," which are simply the previous day's high and low. Movement between these two points determines the "true trend."

When swing trading, adjust your expectations. The lower your expectations, the happier you will be and, ironically, the more money you will probably make! Entries are a piece of cake, but you must also trust yourself to get out of bad situations and trades. It is important to use tighter stops when trading swings and wider stops when trading trends.

This method teaches you to anticipate! Never react! Know what you are going to do before the market opens. Always have a plan--but be flexible! "See" your stop (support or resistance) before initiating a trade. Know how to trade out of trouble situations and get off the hook with the smallest possible loss.

Finally, never trade in narrow, dead markets. The swings are too small. Never chase a market. Rather than worry that you've missed a move, think instead.

Article Written by Dave Hot Penny stocks

Dave member of Penny Stocks, and stock message board

Stock Research - Amaranth Hedge Fund Collapse – Friendly Banker becomes – PREDATOR

You might be familiar with Amaranth LLC, the giant hedge fund that collapsed last fall, after blowing up $6 billion of investors' money. It now comes out that the circumstances under which they self-destructed are worth studying.

But first – A METAPHOR

What would happen if you had a pain in your chest, and you had tests taken at your doctor on a Monday who you have known and trusted for 30 years? He tells you that the results will tell you if you are going to live or die, no in between. You now visit the doctor on a Friday to discuss the results. The doctor says to you how would you like to bet on the results.

You offer to bet $1 million that you are going to live. The doctor says, "I will take your bet myself." Would you still make the bet? The answer is no, of course you wouldn't because the doctor already knows the result. and you don't. It's like betting against the house in Las Vegas when the house already KNOWS how the results will turn out.

This is the same situation in our opinion that Amaranth the hedge fund faced during its trading crisis. Hedge funds have to book their trades through a clearing firm, no different than many major brokerage firms clearing trades for smaller brokerage firms. The smaller firm pays a fee to the bigger firm that clears the trades for them.

In the case of Amaranth the hedge fund, JP Morgan was the clearing broker, known as a Prime Broker. In essence Amaranth made bets on the energy futures markets, and these bets went the wrong way. As a hedge fund, Amaranth uses leverage when it trades against its equity, usually borrowing about 6 to 1, and sometimes as high as 8 to 1. JP Morgan as the clearing broker was the lender of the additional margin.

Now when a trade goes against a hedge fund, the fund may be called upon by the clearing firm to put up more margin, meaning cash, or securities to protect the clearing firm. In this case the problem happened on a Friday. Amaranth wanted to get rid of billions of dollars of toxic bad trades by giving them to Goldman Sachs, who agreed to take them if Amaranth would give Goldman $2 billion in cash along with the trades. Goldman would then assume the risk of what happens to those trades. Amaranth wanted its clearing firm, JP Morgan to give Goldman the $2 billion from its capital account simultaneous with the movement of the trades.

JP Morgan would not release the funds. They barked, stating that they felt they would still be at risk if this were to happen. A clearing firm hates risk, and never wants to take risk. Amaranth very quickly had to operate in the most treacherous waters imaginable. They had to begin talking to outsiders in a desperate attempt to structure a transaction with anyone capable of taking these trades or injecting new additional capital. Remember, this is Wall Street, the sharks were circling.

Anyone who had knowledge of Amaranth's trades knew immediately how precarious the oil markets that Amaranth was involved in. They also knew how to play the market to its own advantage using Amaranth's weaknesses. The SHARKS came in and did trades that would work to their advantage. Within a matter of trading hours, this giant hedge fund was losing hundreds of millions of additional dollars. Merrill Lynch decided to take a piece of the funding deal, and this drove Goldman Sachs up a wall. Goldman upped the ante, and decided to charge Amaranth hundreds of millions more to do the deal which would partially save Amaranth.

Now here's where our story of the doctor with the patients information and the patient's bet come in handy. JP Morgan as the clearing broker was in a position to know more about the condition of Amaranth's books, and their trading positions than anyone else in the industry. Since JP Morgan also trades in the same market as Amaranth, the bank knew the market's condition better than anyone else also.

When the Morgan bank was informed that a deal was imminent between Goldman and Amaranth, the Chairman of Morgan got involved himself and called in his top energy trader over the weekend. Morgan was thinking of making their own deal for Amaranth's positions, the very positions that they cleared for Amaranth over the preceding months.

The Morgan bank was sitting in the catbird seat. They knew everything; they saw everything, no different than a black jack dealer in Las Vegas being able to tell everyone's cards. As a person who has been in this field for 30 years, and watched a few firms go down the tubes in a deal like this, I tell you, it doesn't SMELL RIGHT.

JP Morgan knew that Amaranth couldn't make a deal with anyone as long as the Morgan bank held the collateral. No deal could be structured if Morgan wouldn't release at least part of the money in the Amaranth account at Morgan. The Morgan bank was in complete control of Amaranth's destiny. What would the bank do?

JP Morgan also acts as a giant hedge fund trader for its own account in the energy markets, and in other markets. In a sense it competes against its clients if it chooses to, in these markets. The difference is when you are a major clearing firm as well as trading yourself, which is what Morgan does, you have the advantage. You have an understanding of the market place that nobody else can even dream about having. It is the trader's ultimate dream. There are times when the clearing firm can dictate the market.

The FINAL DEAL

Discussions ensued through the weekend, into Monday, and Tuesday. Amaranths finally capitulated at 5:30AM on Wednesday morning, and guess who signed the deal. J.P. Morgan in conjunction with the Citadel investment Group, another hedge fund inked the deal. Amaranth's $800 million in portfolio losses from the weekend would be eaten by Amaranth themselves. Morgan and Citadel got $1.6 billion in cash to take the trading positions in the portfolio off Amaranth's books. They got another $300 million to assume options positions, plus a $250 million kicker for commodity investments.

What's the bottom line here? It just became public information that J.P. Morgan made $725 million for its bottom line on the deal. Congratulations to a nice conservative bank, that always catered to conservatively managing the trust funds of its wealthy clientele. Do you think that GREED had anything to do with the bank's decision to cut the deal with Amaranth, as opposed to arranging a bailout? Gee, a bank wouldn't function like that, would it?

Richard Stoyeck’s background includes being a limited partner at Bear Stearns, Senior VP at Lehman Brothers, Kuhn Loeb, Arthur Andersen, and KPMG. Educated at Pace University, NYU, and Harvard University, today he runs Rockefeller Capital Partners and StocksAtB

Tips for Penny Stocks

When looking at penny stocks buy one that which is showing strength - sell that which is showing weakness, and Never, EVER under any condition, add to a losing trade, or "average" into a position. This will only cause you to lose more. When sharp losses in equity are experienced, take time off. Close all trades and stop trading for several days. The mind can play games with itself following sharp, quick losses. The urge "to get the money back" is extreme, and should not be given in to. Study long term charts. Begin a chart analysis with monthly and weekly charts spanning several years. Determine the trend and follow it, you have heard let the trend be your friend well this is it. Market trends come in many sizes long-term, intermediate-term and short-term. First, determine which one you're going to trade and use the appropriate chart. Find support and resistance levels within the time frame you are looking t trade with. The best place to buy a market is near support levels which should provide for a bounce. That support is usually a previous reaction low. The best place to sell a market is near resistance levels. Resistance is usually a previous peak, this is normally when a penny stock will turn south. Volume precedes price. It's important to ensure that heavier volume is taking place in the direction of the prevailing trend. In an uptrend, heavier volume should be seen on up days. Rising open interest confirms that new money is supporting the prevailing trend. Well I hope these quick penny stock tips help you out.

Article Written by Dave Hot Penny Stocks

Dave member of Penny Stocks, and stock message board

What is Stock Beta Calculation

Learn how to protect your money, manage risk and diversify your portfolio by strategically aligning yourself with the market during "Bull Runs" and playing on the other side when the "Bears" take control. What is Stock Beta Calculation?

Whether your are an experienced investor or just someone who is trying to put some money away for retirement, know the stock beta in relationship to the current market conditions can minimize risk and assure that you can gauge potential and profitability from investments over a longer period.

Stock beta calculation measures a stock's volatility, the degree to which its price sways and moves as related to the overall market. In other words, it can measure the risk of a particular investment and/or sector in relationship to the current market trends/conditions.

A Stock Beta Calculation of 1 indicates a strong correlation between an individual stock and the market direction. A Stock Beta Calculation of greater then 1 indicates that the price of the given security tends to move in a manner more volatile then the market. Meanwhile a Stock Beta Calculation of less then 1 means that a stock/security or sector moves in a manner less volatile then the market.

Here is a guide to follow:

Negative Stock Beta Calculation - A beta less than 0 - which would indicate an inverse relation to the market - is possible but highly unlikely. Some investors used to believe that gold and gold stocks should have negative betas because they tended to do better when the stock market declined, but this hasn't proved to be true over the long term.

Stock Beta Calculation of 0 - Basically, cash has a beta of 0. In other words, regardless of which way the market moves, the value of cash remains unchanged (given no inflation).

Stock Beta Calculation between 0 and 1 - Companies with volatilities lower than the market have a beta of less than 1 (but more than 0). As we mentioned earlier, many utilities fall in this range.

Stock Beta Calculation of 1 - A beta of 1 represents the volatility of the given index used to represent the overall market, against which other stocks and their betas are measured. The S&P 500 is such an index. If a stock has a beta of one, it will move the same amount and direction as the index. So, an index fund that mirrors the S&P 500 will have a beta close to 1.

Stock Beta Calculation greater than 1 - This denotes a volatility that is greater than the broad-based index. Again, as we mentioned above, many technology companies on the Nasdaq have a beta higher than 1.

Article Written by Dave of S Best Penny Stocks

Dave of Hot Penny Stocks, and stock message board