Rules of Investing in Penny Stocks

One of the most important things in buying penny stocks is rules. All of the big time stock traders that had to start out small swear by the fact that they had to follow their own set of rules or they would fail and lose money time and time again.

For the most part, most of can't afford to lose any money learning rules for ourselves. We just don't have the resources. After a couple of years of learning about investing and reading book after book I've finally come up with a simple list of rules to follow for successful investing.

The biggest rule to keep you out of trouble is never borrow money to invest. It's all so easy to think about making stock trades and building up a great portfolio but here's why borrowing money is never the answer.

For information on how to find a profitable company and get great penny stock picks see our published works at www.pennystockpile.com.

For one, if you're losing money on the stock market, you'll have to start making the payments for the loan out of your income. For most of us, that's just not something that can be done. If you start making money, all of the profits will go into paying the loan back instead of into your wallet. It's going to take a long time to pay the money back and start taking profits for your self. This doesn't sound to bad, but remember, it's dangerous. If you lose money at any time while you're still borrowing, you'll be paying for it out of your income and it will be unexpected. Always save up money to invest.

The next big rule for penny stocks is always invest in a profitable company. Most of you are thinking, why would I not invest in a profitable company? Most people don't take the time to find out if the company is making money or not. The worst thing in the world is seeing a stock that has a great chart and news to only find that its quarterly earnings are down 15% and its revenue per share is - 0.03, yes that's negative 3 cents per share.

The next rule to follow 100% is never buy a stock that doesn't have attention. Volume is one of the first things that most successful investors look at. If the stock is not trading more than 1 million shares per day don't touch it. There's just no point. If you have a stock that's trading 10,000 shares a day and you want to buy 10,000 shares of this, you're going to have an impossible time trying to sell the stock once it goes up.

Stocks need attention in order to have liquidity. This means that it must be something that is easy to sell once it has value. Don't get sucked into stocks that are going up and up if you won't be able to sell them later.

Stick to these few main rules and you should do very well.

A Guide to Online Investing

Online investing can be a wonderful way to access the stock market without visiting an investment broker... you can cut out the involvement of the middle man and make all of the pertinent decisions yourself.

Unfortunately, many people are unsure exactly how safe online investing is, and even more aren't exactly sure how to go about setting up an investment account online so that they can take part in the online investment revolution.

If you fall into one of these two groups, you're in luck; for your convenience you'll find basic information about both the safety and security of online trading companies as well as how to set up an online trading account so that you can begin investing in stocks, bonds, and the like from the comfort and convenience of your own home.

Basics of Investment

Before going any further into the specifics of online trading, here is some basic information about investment to assist you. Investing and trading the stock market, whether it's online or offline is merely the buying and selling of stocks, bonds, indexes, futures, and a variety of other commodities.

Stocks are the most commonly traded, as they are public shares or pieces of the ownership of companies.

Bonds and indexes are also commonly traded... bonds being funds that are set up by governments and companies that can have portions of the fund purchased, and indexes being general groupings of stocks by the stock's industry that can be purchased.

Safety of Online Investing

Since online traders deal with a large amount of money and the financial information of a variety of customers, online trading companies spare no expense when dealing with the safety and security of their customers' personal and transaction information.

Cutting edge encryption and security technology combines to make online investment as safe as possible, and the companies that operate the online investment sites are always on the lookout for ways to make the online trading experience even safer.

Many online trading sites even undergo daily testing to make sure that the site is safe... should a weakness be discovered, they immediately set to work on correcting it.

Setting Up an Online Trading Account

Once you've decided to set up an online trading account so that you can invest over the internet, one of the biggest problems that you might encounter is deciding on which company to choose. Some companies require a minimum initial deposit into a money market account, and others are limited as to the types of trades that they offer.

Take a little while to investigate various options and see whether minimum investments, large per-trade fees, or other factors make them less than ideal for your needs.

After you've decided which company is best for your needs, the setup of your online trading account usually doesn't take much more than the filling out of an online form.

When the account has been set up, you then need to fund your account (most likely from a chequeing account or savings account) before you can begin to trade stocks online. You should also take a little time to explore the options that the company that you chose offers on their website... you may have options for automatic investment, reinvestment of dividends, and even the tracking of stocks or bonds with instructions to buy or sell once the price reaches a certain level.

Take your time in exploring the site and getting used to all of the features and options that are available to you... after all, the more you know about the site then the better you'll be able to make use of it.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website

Investing on a Budget

Have you ever found yourself wanting to make investments for the future, but ended up telling yourself that you simply couldn't afford to make those investments?

If you think that just because you're on a limited income you can't afford to make investments in your future, you might want to consider working money for investments into a household budget.

Though you might think at first that there's no room for the additional expenses of investing in your budget, you'll find that through a bit of creative saving and a little bit of prioritizing that you can make a few choice investments on regular intervals.

Building your budget

One of the ways that you can find the money to make investments on a limited income is to create a budget and allow for some minor investments either with each salary payment or at the end of each month. This money can either be placed into a savings account for the specific purpose of saving money until there is enough to invest, or can be invested directly into partial shares of stocks and bonds via certain investment brokers especially some of those that do business online.

The amount of money budgeted for investment doesn't have to be a large part of your monthly income, nor does it have to come at the expense of some of your other bills and commitments; simply use a portion of the money that you would have left over as spending money, and only a portion of that.

Getting creative with savings

If you feel strange budgeting investment money into your monthly expenses, there are other methods that you can use to build your investment fund. One possible way to save the money that you need to invest is to have a container in which you place your loose change at the end of the evening, just like a child's bank.

At the end of each month, take the change from the container and use it as money for your investments. While this might not seem like a lot of money, you'll find that over the course of a month you build up a decent amount of change.

Should you want to have a slightly larger yield over the course of the month, you could repeat this same process but use smaller-denomination bills instead of loose change. Even if you only put aside 1 bill each day, that's still 30 or 31 by the end of most months.

Making small investments over time

A misconception that many people have about investment is that large investments must be made all at once. Many investment service providers, especially those who operate online, allow for relatively small investments to be made... even if the investment only buys a few hundredths of a share.

Over time these small investments build up into a larger total investment, and with any luck the value of the investment will continue to grow even as you purchase more partial shares.

Reinvesting

Once you've begun to purchase some stocks and bonds, you might find that some of them are paying dividends... in other words, you're getting back a little bit of money as the stocks or bonds continue to grow.

While these dividends might not be worth much early on because of the low number of shares that you own, you can set your investment account up so that it automatically reinvests the dividends into the stock that created them.

Though it's not a large purchase, it's still that much more that you have invested... and over time the small purchases add up.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website

Real Estate Investing Mogul Shares Insider Knowledge

There's no doubt about it--the Orange County housing market today is a tough place to live. In fact, everyday we read headlines about people either a) seeking creative financing to purchase their Orange County dream home, or b) figuring out where to move outside Orange County to live--and still find a job.

But what if you could have a job you love that lets you live anywhere you want and not worry about how to afford it? What if that job had unlimited income potential, promised both personal and professional growth, let you spend time with friends everyday, and benefits others while it benefits you? Orange County businessman Corey Donaldson insists in can be done. In fact, he's living proof.

An entrepreneur since his college years, Corey not only knows the secret, he's eager to share it with anyone who'll listen. He's that passionate about what he's discovered. The biggest surprise element in his story is he's not a successful senior citizen or even a bonus-baby boomer. Donaldson is only in his mid-thirties.

Donaldson began investing in real estate in his early twenties. Within ten years, in 2004 he "retired" from corporate life. Today, he is president of Avalon Properties, which owns more than one hundred Orange County housing units, along with mobile home properties and storage units in several out-of-state locations.

"I've always had an entrepreneurial spirit," Donaldson said, "so I know that's helped. But what I've learned in a relatively short time convinces me that almost anyone who wants to be free from the nine-to-five grind can do it."

By relatively short, Donaldson refers to a period of about ten years. In that time, there have been a few failures--as there are with all attempts. But each failure, Donaldson says, has provided an opportunity to learn. And each fall is a little less painful than the last, with a speedier recovery.

Donaldson's winning ways do not involve getting rich quick. Rather, he emphasizes, finding a life that works for you. "When you love what you're doing, it doesn't seem like work at all. I know a lot of people are frustrated in their jobs, but finding something fun to do that makes money for you isn't as hard as it looks. If I can do it," Donaldson said, "anyone can."

Look for Real Opportunity

The particular world Donaldson has succeeded in involves real estate, which is something everyone deals with at some time in their lives. After all, everyone either owns a home, rents from someone who owns a home or apartment, works for a business that owns property or does business with people who rent or own property. Life happens in places and on places. Buildings, ground, space--we all use it. So it's a natural resource for investors and provides greater stability with less risk than other commodities.

The stock market, for example, offers great potential rewards. But the losses can be devastating, and sudden. Even with all the help available from books, radio programs and TV analysts, it's a risky business to be in. A stock that looks great today can tank tomorrow. Real estate is different. While it, too, fluctuates, the roller coaster ride is a lot slower. You can watch it and anticipate the dips, curves, highs, lows and wild moments. In time, a smart student of the real estate market learns to predict future trends.

Donaldson's adventure began when he bought his first place, a duplex in Costa Mesa, and rented out the other half. Between rent money and his day-job, he was able to move up to a triplex within a year. Timing was right and his property values rose. Before long, he had two four plexes. His plan--an important thing to have from the get-go--was working beautifully.

Today, in addition to owning multiple properties, Donaldson offers seminars to help others succeed. While there's a lot to learn, he points to four key elements that have helped spell success for him.

What You Need to Succeed

1. Make a Commitment

Recognize nothing worth having comes easily. If you want anything to work, you must be ready to make a commitment you can't turn back on. People who make it, Donaldson said, are those who don't mind living "close to the ground," willing to trade a wealthy lifestyle now for long term profits down the road. "If anything claims to be easy," said Donaldson, "like many of those late night infomercials on TV--be suspicious," and be very afraid.

That said, when you understand how real estate investment works the possibilities are almost endless, Donaldson said. Just be ready to do the work it takes. In other words, once you start to paddle out, don't turn around and head back for shore.

2. Build Your Knowledge

No matter what we might want to do these days, there's some way to learn it. Where we go wrong is in failing to read the directions! "What I see are too many people buying property all over the place without really studying what they're buying first," Donaldson said. "I recommend becoming a local market expert, because all real estate is essentially local. Know what you own."

Tools for learning can be as intense as a seminar, as informative as reading books, and as basic as studying the market. Learn how someone else did it, then take those tips and modify them to fit your own unique personality and work lifestyle.

For a couple of years now, Donaldson and his partner, Kyle Kazan, have hosted seminars on a regular basis. These forums provide a great way to share information, learn from others, and network. Clubs are another great learning forum. "I host one in my home every month," Donaldson said. "It's a great way to meet people and help them get started."

Bottom line: find others who've been where you want to go as well as those headed in the same direction, and learn all you can from them. Which brings us to tip number three.

3. Find a Mentor

No matter what we want to learn, we can learn it better and faster from someone else who already knows the secrets.

"One of my first business opportunities," Donaldson recalled, "came when a woman who lived in my home town back in Connecticut asked me to recoat her driveway for her. I'd never done anything like that before! But she asked, 'Do you know how to paint a wall?' I figured, sure! She told me that she had seen her husband do it a million times and she would teach me. The job took about 4 hours and she paid me $200 for my efforts. I was able to turn that $200 into what became the largest residential sealcoating company in the state of Connecticut. The sealant business that I started that day paid for my college education--and that of my brothers and about 5 long time friends.

Then there was the time Donaldson decided to go right to the source--he called Ernest Tew, the acknowledged "godfather" of mobile home estate investing. Sometimes finding mentors takes a little boldness. For Donaldson, this move paid off in spades.

"He invited me to spend a few days with him in Florida, so I did. What a treasure hunt I was about to embark on! As he traveled the state, I went everywhere he went, zigging where he zigged and zagging where he zagged. En route, I must have asked him at least a thousand questions.

"At the rainbow's end, I asked what he would charge me for this training. 'Nothing,' he answered. 'I had the best time of my life.'

"I couldn't believe it! Here was this great, successful man, teaching me virtually everything he knew--for the love of helping someone else succeed. Well, needless to say--I was hooked. I've been in the mobile home business ever since. And I love to teach others how to do what I do."

4. Cultivate a Support System

Have you ever been a member of a team, either in sports, at work, or just for fun? Remember what it was like, having everyone working for the same goal? Successful people do that in their professional lives. They build teams of like-minded people, networks of folks headed in the same direction. "It's great!" Donaldson said. "I get to spend all day, everyday, with my friends."

Where can you meet people like that? It's not as hard as you might think. Maybe you've even mastered the technique to some extent. Most of us have friends who enjoy the same hobbies or interests. What Donaldson advocates is just an extension of that idea--finding friends in your chosen profession. Everyday we read headlines about corporate deception, greed and corruption. Sadly, the pressures of competition often bring out the worst in people. The end result: no one wins. But when your goals involve helping others succeed, Donaldson observed, that competitive edge softens substantially. Most people really want to help others make it.

Know Yourself

Another critical piece in achieving success is to know your own core values. Take pride in who you are and what you do. Be determined not to let other people down.

"When I set out to help someone else succeed, I see it through," said Donaldson. "Of course, there are seminar junkies in every walk of life. These are people who attend everything and go nowhere. That's where you need to take that first step--make a commitment. If you can't decide or you're unwilling to take a risk--even a relatively safe risk like real estate--you're better off not wasting your time or money."

Wherever you hope to succeed, Donaldson believes these principles will help you get there. Be committed to your dream, learn all you can about it, find a mentor who's been where you want to go, and cultivate a strong support system.

"With these tools, you'll reach your destination and have a great time on the journey. And maybe, like me," Donaldson grinned, "you'll find you can live in Orange County--and have a few bucks left over."

You can learn more about investing in mobile homes by visting http://www.mobilehomeuniversity.com

The Latest Investment Stocks Online Articles

Mutual Funds

A mutual fund is perhaps one of the most popular means of long term investing and is the vehicle of choice in IRAs and 401k accounts. A mutual fund is basically a way of investing in a pool of different companies in order to minimize risk.

More articles coming soon!

Investing Stock Online Resources

Yahoo Finance

CNN Money

Family Financial Planning Courses

Internet TV