Investment Strategy: Why Investing In The Uranium Industry Can Make You Money

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Uranium is the new investment strategy that directs toward the future. As the fossil fuels are declining, the world requires more dependable energy resources. With the shortage of oil and natural gas, the cost of uranium has been rising and at astonishing rates. There is shortage of uranium predicted over next 10 years.

The most vital form of uranium is uranium-235 and it possesses some very important features. Uranium-235 can go through an induced-fission. In induced fission, a free neutron is used to bombard the element, making it to straight away undermine and split. In this reaction a large amount of heat is released and this heat can be reaped in form of power. This procedure is called nuclear fission. More than 500 nuclear fission generators are there in the world in main countries such as the US, China and Germany. As more and more countries are mounting their power grids and adding nuclear power to their power creating weapon stores, the demand for uranium is rising.

So it’s the right time to change your investment strategy and invest in uranium. As you consider the diversification of your portfolio by adding various precious metal and natural resource mining stocks you must direct your investment strategy towards investing in uranium mining companies.
Due to the towering uranium prices, many companies are looking to cash or capitalize the latest trend. You must check up with ISL uranium companies. One fifth of the world’s nuclear reactors are fueled by uranium mined using this technique.

With many new players, the rising uranium companies of Canada and Australia are putting in loads of money needed to bring a uranium property into production. A predicted uranium supply crunch has added a lot to this race.

Before finalizing your uranium investment strategy you must check up with the companies, whose properties were already drilled during the uranium market of 1975-1980. Then many newly entrants in uranium companies get hold of those drilling databases and their properties, which were deserted by their old owners. Moreover, some companies among these have been vigorously moving their projects ahead to production, using a healthy and atmosphere-friendly mining method than an open pit or underground mine. This method is called In Situ Leach uranium mining, the ISL method and the procedure is more like a water treatment plan. It requires oxidized or carbonated water to be pumped into an ore body, as a result uranium is flushed into a processing plant.

However, there are drawbacks when your investment strategy points towards the companies that proceed to set up ISL operations. Initially all the investors based their investment strategy on pounds in the ground strategy. This refers to pounds of uranium oxide or the short form U3O8, does a company possess in the ground.

The company acquired a strong position in the capital market if the pounds a company claims are high. However, while deciding your investment strategy you must separate the real prospects from the pounds in ground marketing. Moreover if you really wish to analyze your investment strategy, you must check up main questions that must be kept in mind before investing thus to minimize the risk. How porous are the ore bodies that are to be mined? What is the dept of ore body? Your average grade and over what area
does your roll facade extend?

With these investment strategies, you can move ahead with investing in uranium in 2007, which might turn into a gold mine for you.

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Investing in Socially Conscious Stocks

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You may want to be socially conscious and do the right thing, both in your own community and in the larger global community. Perhaps you are concerned about environmental issues or about opportunities for fair trade and human rights, or maybe you are passionate about protecting wildlife or promoting healthy diet and exercise for young people. Whatever your area of interest and moral or ethical position, you may want to act in a way that is in accordance with your personal beliefs and convictions. But at the same time, you may be interested in making money in the stock market. Many see this as an irreconcilable conflict, but it doesn’t have to be, thanks to many stock funds that have been created to specifically cater to the needs of people who want to play the market without compromising their own personal values.

Mutual funds are a great way to delve into the socially conscious side of Wall Street. These are not single stocks, but groups of stocks that are managed by trained professionals. When you buy a share in a mutual fund, you are essentially contributing funds to a mutual fund, and then the fund’s manager will use that money to buy stocks that he or she thinks will do well and meet the goals of the mutual fund’s investors. Because these funds value diversity of assets, they are somewhat protected from the risk of only owning shares of an isolated company. And these days there are many mutual fund companies that specialize in socially conscious investing. When you buy into their funds, they promise to use your money only for investment in companies that promote the things you believe in, so you get two benefits. First, you get the peace of mind of knowing that your stock market investments are for good causes. Secondly, you get to promote your causes and support the companies that share your values, by putting your hard-earned money behind your commitment to those values. When get to own shares in companies that are trying to succeed by doing the kinds of things you want to see done in the world, so you have a chance to reap both financial rewards and personal satisfaction.

You can also buy stocks in individual companies, by doing some background research to find out which ones meet your standards. For example, if you want to help protect the environment from companies that pollute, you could buy stock in companies that make “green” products like alternative fuels that don’t contaminate the atmosphere. Or you can buy stock in companies that clean up oil spills, plant trees, or manufacture biodegradable consumer products.

The idea is that you can have your cake and eat it too. It is possible to make money in the stock market and at the same time remain committed to socially conscious values, by putting your money into the right stocks. To learn more, talk to a knowledgeable stockbroker and ask for a list of companies that fit your criteria.

Stock Investing – Chrysler Up For Sale – What Is Daimlerchrysler Thinking?

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DaimlerChrysler has basically thrown in the towel by hiring J.P. Morgan Chase to find a way for the luxury German auto maker to divest itself of the Chrysler automobile company here in America. We went back and took a look at our stock research on the original German purchase of Chrysler and wondered how we got from there to here. Chrysler was a stock pick of ours as far back as 1981 when Lee Iacocca brilliantly prevented bankruptcy, and turned the company around.

When it comes to stock investing, you have to look behind the fluff, and figure out what’s real. Our stock research shows that Chrysler is in the same boat as General Motors and Ford. All three companies in their internal budgets which is how they guide their companies through the next 12 months and beyond, have built into their plans continued degradation of their domestic automobile market share. This very simply means that they plan to continue to lose market share to the Japanese in each of the next three years.

This is no different than a boxer stepping into the ring and thinking about which of the next several rounds I will get knocked out in. It’s throwing in the towel, and you don’t want to get involved with stock investing with companies that have that attitude. Chrysler along with its two American counterparts General Motors and Ford must implement a couple of very simple ideas to make a comeback. They are:

1) Manufacture a reliable, quality product

2) Sell it at sensible, competitive price without playing games with the customer

3) Service their cars in an appropriate manner that retains and builds customer loyalty

Let’s look at these ideas

It is unfortunate that our home based car manufacturers manufacture “crap”, but that’s just what it is, pardon the expression, and always has been. We never realized it as consumers until the Japanese came along and implemented zero defect manufacturing. This means Toyota, Nissan, and Honda will not allow a car to leave Japan unless it is perfect coming out of the factory.

We on the other hand have made a decision to allow less than perfect cars to leave the assembly line. Detroit’s decision is that the consumer after taking delivery will make a list of problems, and then have the dealer fix the issues at the dealer level. This is unacceptable to the American consumer, and Detroit should immediately take steps to fix it.

Detroit won’t however. They are locked into a different mindset. In Detroit’s way of thinking, it would be prohibitively expensive to implement zero defect manufacturing in this country. Although this might be true for factories currently in production, this would no be true for new factories coming on stream. Since GM and others could have implemented this policy years ago, and chose not to, Detroit’s big three is at least a decade further behind the eight-ball.

When you take delivery of a Japanese car, it is perfect. Everything fits, everything works, and very seldom is there an issue. I do remember buying a new Acura MDX and having the starter fail the first week out of the showroom. No only did Acura tow the MDX in and replace the starter
at no charge, but I found out later that the faulty starter was air expressed to Japan to determine why it failed. Acura wanted to learn from the experience. Could you ever imagine in your wildest fantasies, an American car dealer sending the part back to Detroit for rip down and investigation. It’s not even vaguely possible.

Sensitive Competitive Pricing – No Games

Sure, not in my lifetime, maybe in yours. When you walk into an American dealer, they still try to snow you. In our investment work when we get involved in stock investing, we do hands on stock research. If it’s Detroit’s manufacturers, we walk into dealers all the time to see what’s going on. We are looking for tidbits of information, what we call the scuttlebutt method of stock investing.

We were in a Chrysler dealer recently, and looked at a model that seemed interesting on the showroom floor. The car had a base price of $22,000; the bottom list price after accessories was $39,000. You got to be kidding? I have done advanced postgraduate courses in mathematics. I would never be able to compare one dealer’s pricing with another when you are itemizing numbers in that manner.

When you walk into a Japanese dealer, there are no games. The car comes from Japan loaded, the price is the price although negotiable, and the lease price is the lease price. You can sometimes negotiate more miles on a lease, as I did recently, but basically you can very easily work dealer against dealer for the best price possible.

The America car dealers disallow this negotiation method by having 30 plus items individually priced on the vendor’s window sticker. How are you going to compare prices using that methodology? The answer is you are not, and they know it. God forbid you are a woman going in to buy a car; they really take advantage in that instance.

Service and Customer Loyalty

I live in Westport, CT., you can’t buy a house under a million dollar, in fact a million dollars is a tear down. We have a Chrysler jeep dealer adjacent to Westport which is the closest dealer if you want to buy any kind of Chrysler. Upon inspecting it, I found the shop employees who handle the customers to have grease on their clothes. These are not the guys who fix the cars. They are the service advisors.

Eighty years of building cars and they can’t get their act together, and Detroit wants to know why they continue to lose market share. In the last two or three years, Japan has begun implementation of a free oil change policy. Everybody thinks they are being kind to their customers. The truth is the cars never break down, people were leasing their cars, and consequently never changing the oil. Cars were coming back with 30,000 and 40,000 miles on them without oil changes.

The reason is that Japanese cars really do not require maintenance for 30 or 40K. American cars on the other hand begin to fall apart after 30 or 40,000 miles. It is said that the engine on the Honda is so strong that it will outlast the body of the car. If you look at American car dealer service centers, they are always busy doing repairs. This is not the case at Japanese car dealers.

DaimlerChrylser will find a buyer for its Chrysler line. General Motors is even talking about buying it, which is like the lame leading the blind. GM is trying to save and realign itself, and wants to take on what German super management teams have FAILED at, which is taking Chrysler to the next level. Our answer is SURE.

Goodbye and Good Luck

Richard Stoyeck

Investing With Confidence

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Most people’s beliefs about investing are very tenuous. There are, of course, people who are very passionate about investing. They don’t view investing as some esoteric subject, but rather as a field intimately connected to the human behavior they observe in their everyday lives.

For everyone else, however, beliefs about investing come in the form of passive knowledge. The tendency is simply to accumulate an inventory of conventional dictums. Investing beliefs are formed much the way a student prepares for a test. If the subject of investing were as simple as a third grade spelling bee, this wouldn’t be a problem.

But, investing is a far more complex subject. That isn’t to say it is necessarily a difficult subject. For some, it is relatively easy. But, it is never simple. An investor can not analyze relationships with the certitude and precision a physicist can. The investor is concerned with human phenomena, which are necessarily complex phenomena.

The complexity of the subject is what makes it appear so difficult. While you can develop a set of guiding principles, it is impossible to devise rules that will lead you to the best course of action in each and every case.

If you try to build an intellectual edifice based on principles such as high returns on equity, strong consumer franchises, low price-to-earnings ratios, low enterprise value-to-EBIT ratios, high free cash flow margins, and rock solid balance sheets – you will fail.

The entire structure will collapse, leaving the architect disillusioned. Why? Because the items listed above are desirable attributes – nothing more and nothing less. They are not true principles. Even as rules of thumb, they are badly flawed. Ultimately, investment decisions are not made about general classes; they are made about special cases.

Every investment decision requires good judgment and sound reasoning. You need to start with the correct principles. But, principles alone are not enough. You aren’t being asked what the law is, you’re being told to apply the law to the case before you.

This is where a lot of people start to feel overwhelmed. Having learned that investing is not simply a matter of running down a checklist, they don’t know where to begin.

The answer is to start with what you know best. Begin with your most strongly held beliefs. Subject them to honest scrutiny. Then, and only then, apply them to the case at hand.

Do you believe the concept of intrinsic value is a valid one? Do you believe it is a useful model? If so, then begin there. What does the concept of intrinsic value really mean? What conclusions follow from this belief?

In the case of intrinsic value, the most difficult conclusion you’ll have to grapple with is the idea that you can pay too much for a great business. For some, this is a relatively simple conflict to resolve. For whatever reason, they prefer cheap merchandise to quality merchandise.

For others, the conflict between intrinsic value and investing in great businesses is painfully difficult to resolve. But, if you are ever going to have confidence in your judgments, you have to be willing to submit your investment beliefs to honest scrutiny. You have to be your own prosecutor. You
have to present the evidence against your thesis.

If you aren’t willing to do that, you’ll end up questioning the investment beliefs you do hold every time you underperform the market. Many proven investment techniques have lagged the market over short periods of time. Occasionally, the performance gap has been very wide. Regardless of whether you adopt a primarily qualitative or primarily quantitative approach to investing, this short-term underperformance is unavoidable.

It’s avoidable in the sense that a good investor can get lucky and not suffer a down year for a decade or so. Likewise, it’s possible to outperform an index year after year – if you’re lucky. But, it isn’t possible to adopt a strategy that guarantees such outperformance.

The best you can do is adopt a strategy that offers the right odds. A series of investment operations undertaken in accordance with such a strategy will not guarantee favorable outcomes in every case, but it should provide satisfactory results over the long-term.

There’s more than one way to skin a cat. I don’t want to encourage dogmatism. But, I do want to make sure you do not confuse that which is conventional with that which is reasonable. There is a lot of conventional, moderate sounding advice given to investors that does not hold up to careful scrutiny.

The most obvious example is diversification. Making a series of bets on separate high-probability events is an excellent idea. Diversifying across several different asset classes and hundreds of securities is something entirely different. Even if there are hundreds or thousands of excellent investment opportunities, it does not follow that an investor ought to make every reasonable bet. After all, some will appear to be more reasonable than others. There is no sense in taking on several difficult tasks in the hopes of achieving a result that can be produced by taking on a few very easy tasks.

You don’t have to agree with me on all these issues – most people don’t. But, it is vital that you question the unstated assumptions upon which an investment operation is based. You might come to the same conclusion as those who engage in wide diversification. But, you need to come to that conclusion on your own.

Many investors have not even bothered to consider the underlying premise of diversification. They aren’t really sure why diversification is a desirable strategy. They don’t know how it minimizes risk or at what point the benefit from adding an additional position becomes immaterial. Diversification may be a prudent strategy. But, you can only decide that for yourself after you’ve considered the benefits in terms of risk reduction and the detriments in terms of selectivity reduction.

If I were forced to spend my life betting on horse races, I’m quite certain I would bet on very few races. Whenever I did bet on a race, I’d bet on several different horses.

Why? Because I know more about people than I do about horses. The likelihood that a few horses in a few races get too much favorable attention seems much greater than the likelihood that I could ever make reasonably specific judgments as to which horse is most likely to win a given race. Of course, I would do best if I didn’t bet on any horse races at all.

So, the question is whether stocks are anything like horses. I don’t think they are. When it comes to businesses, I’m a lot more comfortable with the idea of picking the few winners from the many losers – especially when the odds get out of whack. The one tactic that would remain the same is inaction. Acting less and thinking more is sound advice wherever money or commitment is concerned.

A successful investor has to have confidence in his judgments. I don’t know how you can gain that confidence
without subjecting your beliefs to honest scrutiny. An unexamined philosophy will never exorcise your deepest doubts – and for as long as these doubts remain, you will be unable to find the confidence you seek.

$300 + 10 Minutes a Day = $30,000?!?

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We all know the saying, “work smarter, not harder”, but could it actually be possible to work THAT much smarter? Working only minutes a day and replacing, Exceeding your current Income? Don’t worry, Its perfectly legal and people are doing it right this very second around the world!

Its FOREX Trading, and what you don’t know, could be costing thousands of dollars.

Forex stands for Foreign Currency Exchange Market, commonly referred to as FOREX, FX, and 4X. You may be familiar with the stock market, but there are a few reasons Currency Trading can blow Stock Trading right out of the water!

There are 3 Major reasons why Currency Trading can out preform the stock market any day!

There Is a Very low Investment of only $300 dollars needed to start. This is a lower investment when compared to the investment you would make with stocks, futures, or day trading. Of course you can start with something more than $300, but just start where you are, whatever that is and it will grow.

Forex is the most liquid market in the world so it offers a leverage of up to 100:1. The Stock Market offers 1:1 and and Futures 15:1. This gives your money awesome room to grow and gain even more leverage!

The Forex Market Open 24 hours a day and has a trading volume of almost 2 Trillion dollars a day. This makes the market trend well and technical analysis works pretty well too. You can focus your attention and analysis on one or two pairs of currency instead of the 40,000+ stocks in the Stock Market.

The Forex market is open 24 hours, can be accessed anywhere in the world with an internet connection, and can be the ultimate tool for building wealth. Make money working 10 minutes a day, or a few hours a day. Work day or night, and make money while the market is up or down. The Forex is flexible and can fit around anyones schedule!

Not sure you want to risk that $300? Gain the experience you need by playing around with a free demo account, then when you feel ready open your first account and start building your wealth! What do you have to lose ?

Best Wishes

Maranda Mann

Investing in Australian Aboriginal Art

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One of the hottest areas of the contemporary art scene in Australia today is Australian Aboriginal art, which is becoming an increasingly attractive option for many investors. The Aboriginal art market has attracted increasing international attention in recent years, and has experienced exceptional growth which appears set to maintain pace in the medium term. Aboriginal art considerably outsells non-indigenous Australian art at auction and has gained significant international standing. It is critical that investors are well informed before entering the Aboriginal art market, however, not only to ensure that investments are made in quality work by quality artists, but also to guarantee the provenance and authenticity of the work.

Australian Aboriginal art has generally proved to be a solid investment over time. Work by important Aboriginal artists has increased in value markedly over the past 30 years, with individual works fetching prices as high $350,000 at international auction. Prudent investors who have developed good relationships with specialist galleries can derive great pleasure from collecting the art of the world’s oldest living indigenous culture, and can also be assured that the artists in question have been treated fairly and ethically, and that their investment is secure.

One of the first considerations when investing in Aboriginal art is a Certificate of Authenticity. Certificates are normally issued by the community where the artist lives and paints, or by the gallery from which the artwork is purchased. Certificates vary in the details they provide, however most include information including the artist’s name, community and language group, the title, story and size of the work, and the name and code of the relevant community art centre or gallery. A photo of the artist with the work is also often included with the certificate.

Many of the factors involved in determining the value of an Aboriginal art work are similar to those involved in any other art work. A particular piece should in the first instance be attractive to the investor on the basis of its immediate aesthetic value, but its current and future financial value depend on a variety of factors requiring careful research. These factors include the renown of the artist and the period of the artist’s career in which the work was created. Other factors particular to the Australian Aboriginal art market include the artist’s age and seniority as a tribal elder, and their role or position in the historical development of Aboriginal art.

Prior to purchasing a painting, investors should research the artist in as much depth as possible. Determine whether the artist is represented in significant collections or galleries in Australia and internationally. Also determine how prolific the artist is, and whether there is strong demand for the artist in the secondary market – in other words, at auction. View as much work by the artist as possible to determine whether the work under consideration is from a well regarded period or series. Works painted during particular periods can be significantly more valuable than those from other periods. Finally, make sure you have an accurate understanding of the current market value of the artist’s work.

If all these factors seem daunting, don’t hesitate to ask for professional advice. The Australian Aboriginal art market is far more open than it once was, with increased competition facilitating a marked improvement
in service. Reputable gallery owners, dealers and auction houses possess the necessary expertise and are generally happy to assist new investors. One final point to consider when investing in any art are add-on expenses including transaction costs, commissions, insurance and restoration charges. These costs can be high, so be sure to factor them into the purchase price where applicable.

Investing in Penny Stocks – How To Make Huge Profit From Small Beginnings

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Investing in penny stocks is all about defining the rules and playing by them as all of the big time investors have before you.

Big time stock traders and investors have played by the rules and started out small, or even very small, swearing by a defined set of rules that basically state they will not continue any cycle of failing that loses them money, over and over.

Losing money instead of learning these rules is something that is unacceptable and potentially crippling to a new investor – even though your brain is trying to tell you that "Heck, it doesn’t matter, they’re only Penny Stocks after all!" (Damn you brain!!)

However, follow a few simple rules and you should be ahead of the penny stock investing game.

Number One and MOST important – Never, ever, under any circumstance borrow money to invest; this is possibly the biggest rule to stay out of investment trouble.

Yes, I know! You think you have the upper hand with some “inside” information that could help you build a huge portfolio in no time!

So have thousands of others before you – and they were all WRONG!

Please, don’t jump on a story with the only answer being borrowing money. If you start to lose money on the stock market, then the debt repayment will come directly out of your pocket. If this happens, trust me – you are now in big trouble.

Even if you begin to make money then you will be spending it to repay the loan instead of saving or reinvesting the funds. This money will stand by and haunt you as you continue to try to make a living off of the stocks you are trading.

Always save up to be able to invest as a rule of thumb, debt will be chased until you finally catch up by being farther behind than you were to begin with.

DON’T DO IT!

Investing in profitable companies is a big rule to keep in mind when investing in penny stocks. I know that reads and sounds awfully silly and a waste of breath but believe me – sometimes people simply invest in a company without determining if the company is profitable or not.

Either they like the name itself – or the product / service the company offers – or even they know a cousin of the manager of the typing pool and reckon it’s keeping it in the family!

Don’t be the sucker that buys a stock and then tunes in to the television or logs on to the internet to see that its quarterly earnings are down and its revenue per share is dropping like a four-ton boulder of the Empire State building – very hard and very fast!).

Find information on how to find a profitable company, it is readily available on the internet, and then determine which company to invest in. Guides for how to evaluate companies, their accounts declarations and markets are readily available.

Also, do all of your homework, research and analysis before you buy a stock that is not garnering any type of attention.

One of the most important things for investors to look at is volume, anything less than one million shares per day is not worth touching. It is a pointless task to purchase a stock that is trading 9,000 shares a day because it will be nearly impossible to sell once you are ready to do so.

Stocks need attention to have liquidity, which basically means that for it to sell it must have value. Don’t be stuck with a rising stock that you will be unable to sell later. Don’t just thinkof all the lovely profit you’ll generate – think about the mechanics of actually being able to realise that profit.
After all – so what if you’ve made $1.20 per share in three months – if you can’t actually sell them!

Oh – and in case you forget! DON’T BORROW MONEY FOR INVESTING!!

Tis the Season…

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Christmas and (insert your favorite holiday here) come but once a year; earnings season on the other hand, comes four times a year. And while earnings season may be devoid of streamers, balloons and cake…the outcome can be just as festive for penny stock investors.

While blue chip giants are bemoaning the start of earnings season this week, those interested in penny stocks or small-cap stocks have reason to cheer…or at the very least, be extremely optimistic.

After nearly six years of strong performance, small-cap stocks headed into 2005 with many industry analysts saying the honeymoon was over. Small-cap prices were too rich they said…the Johnny-come-lately lemmings were too many…and the bargains too few.

Not surprisingly, penny stocks sailed through 2005, beating their larger counterparts by an equally large margin. For the 12 months ended May 1, 2006, the Russell 2000 index of small-cap stocks returned 31.5%, compared with 14.1% for the Standard & Poor’s 500 index of large-company stocks.

The longer view is even more impressive. Since March 2000 (the official start of this rally) the Russell 2000 index has posted an average annual return of 7.3%, vs. -0.6% for the S&P 500.

Clearly the penny stock soothsayers are i) not worth listening to ii) not invited on my honeymoon.

Now, just because penny stocks have been performing well does not mean that earnings season is a foregone conclusion. In addition, you cannot compare the results of your favorite penny stock pick with those of the blue chip juggernauts.

For example, earlier this week one of the market’s bellwether stocks missed its revenue forecast for the quarter. Analysts pounced noting that the company’s share price "tumbled" 4% on the news. Another company’s missed forecast sent its stock "plummeting" 4.7%.

Penny stocks don’t tumble or plummet 4%. In the world of penny stocks, a daily drop or gain of 5% – 8% is commonplace. Now, should the penny stock on your radar screen climb 10%, 20%, or 50% on strong earnings…that could be described as significant.

Granted, the earnings results from large-cap stocks are a litmus test to how well our economy is doing…and is expected to do. Fortunately, penny stocks don’t follow the same rules as their leviathan counterparts. Penny stocks can defy logic and perform well in bad times…or perform poorly when times are good.

The point is, you can’t read your penny stock company’s fiscal results through the same glasses as you would a triple digit goliath. Penny stocks march to their own tune and experience daily climbs and drops that would churn the stomach of most Wall Street analysts.

Which is fine…most Wall Street fat cats are happy with a 7% return on their safe, boring investment. Penny stock investors are not.

Your Stop Loss Is Critical When Day Trading Futures

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Stop loss orders are great insurance policies that cost you nothing and can save you a fortune. They are used to sell or buy at a specified price and greatly reduce the risk you take when you buy or sell a futures contract. Stop loss orders will automatically execute when the price specified is hit, and can take the emotion out of a buy or sell decision by setting a cap on the amount you are willing to lose in a trade that has gone against you. Stop loss orders don’t guarantee against losses but they drastically reduce risk by limiting potential losses.

With my system the only stop I use is what I call an emergency stop. My stop loss is automatically made when I make my initial trade at two points. It is only for emergencies, like news I wasn’t expecting, or anything that will make the market gyrate drastically and I never enter a trade without it. However I never expect to use this stop loss to exit my trade. I simply will not let the market move against my trade entry more than a tick or two. If I find that I exited the trade too soon I just reenter the trade but if the trade continues to move against me I have saved the loss of one or two points per. contract. Usually I will only have to exit and reenter a trade one time if I have entered a trade to early. This means I only lose a small commission per contract instead of fifty dollars per point- per contract, when trading the e-mini, and taking what many consider
a normal loss.

Trading the futures markets is a challenging but profitable opportunity for educated and experienced traders. However it is not easy, without a great trading system, and even traders with years of experience still incur losses. Finding a good trading system and trading in small increments with an emergency stop loss in place will allow those relatively new to futures trading to be successful. Once you have learned the skills you need to trade with consistent profits it will not be a problem but until that time it is absolutely critical that you do not take unnecessary losses. If you are new to trading futures you should never trade until you have a mentor with a trading system that gives you consistent profits.

A great way to protect profits if you have not established an exit strategy is the trailing stop. The trailing stop loss is an order that is entered once you enter your trade. Your stop price moves at a specified distance behind the market price. Trailing stops are raised when a price rises, in a long trade, but will remain stationary when it falls. Trailing will only occur when the market price moves in favor of the trade to which the order is attached. The trailing stop order is similar to the stop loss order, but you use it to protect a profit, as opposed to protect against losses. Trailing stops are designed to lock in profit levels and they literally trail along your increasing profit and adjust your stop loss levels accordingly. Often traders will find tailing stops confusing because they change them while in an open position. This is not a wise practice, and should be avoided. It is an indication that you are not sure of your trade and if one is not sure of a trade it would be wise to exit immediately. Trailing stops are ideal because they allow for further profit potential to enter due to momentum, while limiting risk. Trailing stops are an important component to a trader’s risk management unless they have an exit strategy in their system that might serve them better.

The market order is the simplest and quickest way to
get your order filled to enter a trade or to use as a stop loss. A market order is a trade executed at the current market price and they are often used to exit trades to ensure that the order has the best possible chance of execution. A market order to exit is simply an order used to exit the trade immediately. Be aware that in a fast-changing market sometimes there is a disparity between the price when the market order is given and the actual price when it is filled.

Stop loss orders are used to exit trades, and are always used to limit the amount of loss, but some day traders use them as their only exit, while other traders use them as a backup exit only. If one uses them as their exit they will risk more than is necessary and might want to find a better system to trade. Stop loss orders allow you to define your risks before you open a position and in my opinion that risk should be minimal. Stop loss orders are one of the easiest ways to increase your chances of survival when trading commodities and futures and they are a powerful risk-management tool.