I’m sure you have heard of the Pre Promotion Stocks newsletter by now so i’ll give a quick overview of their unique value proposition and then we’ll talk about whether this trading strategy is a legitimate service or just another online hoax.

The concept of Pre Promotion Stocks is really, really simple. They send an email that tells you about penny stocks that are very likely candidates for near future stock promotions. For the penny stocks that do get promoted, Richard Appel’s subscribers have the opportunity to buy before the paid newsletters start pumping the stock. 

In other words, his subscribers buy the stock in the “Pre Promotion” phase (before the stock promotion starts) and then sell it during the “Pump” (when paid newsletters start their campaign).

It’s a very sound trading strategy… but does it work?

On the http://www.PrePromotionStocks.com website Richard Appel documents 5 trades that gained an average of 114.6% per trade:

ETEV gained 24% over one weekend in late 2009; ARTS bought on January 4th, 2010 for a 157% gain; GRPR bought on April 15, 2010 for a 57% gain; ZLUS bought on May 7, 2010 for a 31% gain; and BLGW bought on January 27th, 2010 for a 170% gain.

(Like I said earlier, these 5 trades were documented in a video on Richard Appel’s site).

But i’m a skeptic, and I wanted to go beyond these 5 trades so I invested $124 into a lifetime subscription of Pre Promotion Stocks (didn’t have anything to risk, they have an iron-clad, no questions asked 100% money back guarantee).

During the past 7 weeks from July 10th – August 30th Richard Appel alerted the following “Pre Promotion Gems” (his highest level of confidence):

SILA was alerted on July 12th at $0.77 and hit a high of $1.21 for a potential 57% gain; CRPZ was alerted on July 22nd at $0.28 and hit a low of $0.15 for a potential loss of 47%; HELI was alerted on August 16th at $0.062 and hit a high of $0.113 for a potential 82% gain; KHGT was alerted on August 23rd at $0.20 and hit a high of $0.40 for a potential 100% gain (then it collapsed back down to $0.20 for a break-even trade); MYNG was alerted on August 27th at $0.19 and it’s unchanged since then.

Out of these 5 “Pre Promotion Gems” I received over the course of 7 weeks, 3 were big winners, 1 was a big loser and 1 was unchanged.

Hypothetically, if I started this 7 week stretch with $5,000 and re-invested all proceeds it would have turned into $15,144.22 (keep in mind this does not account for trading commissions).

And to give Richard Appel a bit more credit, all 5 “Pre Promotion Gems” went on to be promoted by numerous stock newsletters. Apparently he does know how to find upcoming stock promotions after all.

So there’s my take on Richard Appel’s “Pre Promotion Stocks”. It’s not a flawless trading strategy but it’s far superior to James Connelly’s Penny Stock Prophet. I did make a hypothetical profit and I always felt like his intentions were in the right place (he doesn’t get compensated for picks, he doesn’t use hype and he tries to explain all his rationale in great detail).

Hope this helps anyone out there thinking about investing in Richard Appel’s www.PrePromotionStocks.com trading system.

- About the Author: Jenn Rayne was employed with the Boeing Company as an electrical engineer before getting laid off in 2009. Since then she has done consulting work as a freelance writer and has taken a keen interest in learning the finer details of stock trading using technical analysis. Article Source

Loss of Confidence Surrounding the US Fundamentals by Darrell Jobman

EUR/USD Risk appetite faltered in Asian trading on Wednesday and the Euro retreated back towards the 1.31 area against the dollar as confidence in the global economy deteriorated. The US trade deficit for June was sharply worse than expected with a 21-month high of US$49.9bn from a revised US$42…. Day Trader:..>>>   More »

Most day traders are concerned about liquidity in contracts they trade. It is important to be able to enter and exit a trade at the exact point of your choosing, and thinly traded contracts and thinly traded markets can be treacherous in this respect. It’s reassuring to see the heavy volume always present during a normal trading session on the ES contract, and it gives traders confidence to know that their entries and exits will be promptly filled.

On the other hand, the YM contract doesn’t seem nearly as heavily traded as the ES and can appear to be thin at some price points. I trade both contracts, and prefer to trade the YM. Further, I am often asked which contract a novice trader should begin with and my answer is always the same, the YM.

Why the YM?

I usually have fairly scientific reasons in my trading technique, but I have to admit my preference for the YM is not objective nor is it scientific. There is no shortage of anecdotal stories that claim the ES contract is heavily influenced by black box trading. While that seems a plausible theory, I have found little or no evidence to support the theory. There are traders that also claim the ES contract is manipulated by some of the larger brokerage houses, but I have found little or no evidence to support this theory either. I can say that the ES contract periodically makes some inexplicable moves which I don’t always understand, but that is hardly grounds for developing any sort of conspiracy theory as it relates to trading.

I have had numerous novice traders solicit me for advice and the first thing I generally ask them is what contract they are trading. If it is the ES contract, I promptly recommend they switch to the YM contract and the results are nearly always the same. They began to trade better, and they began to profit. Many would claim this as evidence of the diabolical nature of the ES contract, but in my mind I believe the YM is simply an easier contract to trade.

There are several reasons for this belief, and I think the most important one is that less experienced traders tend to congregate on the YM contract. Conversely, I think the more experienced traders tend to gravitate towards the ES contract. The obvious result of this gravitation is less experienced traders trading the YM contract. For that reason alone, the YM would be an obvious choice for traders new to the trading business.

Further, and this is just my personal opinion, the YM contract tends to react in lockstep to the cash market. Unlike the ES contract, which can deviate at times from the cash market, the YM market does not often display this behavior. Is it because newer traders are trading the YM? I don’t know, perhaps.

The one thing I can say for sure is that newer traders tend to perform better on the YM contract as opposed to the ES contract. I realize my explanations above probably raise more questions than they answer. Though my observations would confirm that there is some reason the YM is not as difficult to trade as the ES. I wish I could point out the precise reason this phenomena of occurs, but I cannot. But I do like the results novice traders have on the YM, and I suppose that should be good enough.

- About the Author: I am a long time retail and institutional trader who now only trades part time, usually in the morning. I enjoy writing informational articles about my style of trading so others may benefit. Would it be convenient to receive valuable trading tips every night in your email? You can sign up for our free video series by Clicking here These videos contain advanced trading strategies and will enhance your trading knowledge immeasurably. Best of all, they are free! So get your free videos and start trading like the pros. Article Source

I’m sure you’ve heard of Penny Stock Prophet already but just in case this is how this article is structured: I’ll give you a quick overview of the newsletter and then we’ll talk results… sound like a sweet deal?

Mmkay so the concept of Penny Stock Prophet is really, really simple. You get an email that quickly talks about recent picks and the results of those picks. Then right below those few paragraphs you’ll get today’s pick along with the appropriate buy and sell points and some info about the stock…

Buy point = the price point at which you should buy the stock. For example if it says buy at $0.65 and under… you would do exactly that. The lower the price you buy at, the better (I’m sure you didn’t me to tell you that, hah).

Sell point = the price point at which you should sell the stock. For example if it says sell at $2.00 and up… you would do exactly that… but that “and up” part might trick people. Here’s how you decide what to do in that situation…

Download Penny Stock Prophet Right Now

If you value security more than risk you would sell as soon as it hits $2.00.

If, on the other hand, you’re more driven by risk you would wait beyond that $2.00 and hope it keeps going up… and then sell when you’re satisfied.

Both strategies have their pros and cons so it REALLY depends on the trader and their values. If you value security you’ll hit that mark, sell and you’ll make a gain… but you could potentially be missing out on some profit. If you value risk you could make a lot more profit but you’re also open to the stock quickly falling and you not making a dime (or even losing money)…

So before you get Penny Stock Prophet I would make sure you understand what you value most: security or risk. That way you’ll have no confidence or emotion problems when you’re making the trades!

Alright, let’s talk results. Had you started trading with James (the author/creator) 6 months ago with a small capital of $1,000 and made all of the trades sent… you would now have over $197,356 in your bank account. Now I know that seems like an impossibly high number so let’s break the process down…

Every trade didn’t make money, there were some losers. I just thought it was important to bring that into the conversation because look, no one’s perfect. You take the loss and you quickly move on… if you get hung up on losses you’re going to lose a lot more money. So how did that $1,000 still manage to turn into over $197,356? Two words: compounded growth.

Say you have that $1,000 right now and you followed the alerts you turned it into $1,500. Most casual investors will take that $500 they made and go spend it. THAT’S THE WORST THING YOU COULD DO! The smart thing to do – and the way you’ll achieve those big numbers – is to reinvest the ENTIRE $1,500… because you can buy more stock, and therefore profit even more on the next trade.

So let’s say you still have the $1,500, you reinvest it all and it turns into $2,000… now what do you do? You guessed it! Reinvest that $2,000 because suddenly what used to feel like a $500 gain can turn into $1,000+… you keep doing that and your capital starts getting bigger… and the bigger the capital, the more profit you can make per trade. It’s like this unbelievable snowball effect.

That’s how you achieve big numbers by starting with a small bit of capital… but unfortunately most people don’t do that. Instead they make $1,000 profit and go spend it on a 42″ LCD HDTV or something that’s not going to make them money. Don’t fall into the trap!

It should also be noted that Penny Stock Prophet comes with an 8 week (60 day) money back guarantee, so you can literally try it out for 59 days… and if you don’t make at least the newsletter fee back you can easily get a refund. If you do start making money… well… keep buildin’ that wealth baby!

You don’t even have to risk any money during those 8 weeks… just look at the stocks James picks with something like Google Finance or Yahoo Finance and you’ll see the result. So with that logic, it’s literally risk free…

Download Penny Stock Prophet Right Now

Article Source:http://www.articlesbase.com/day-trading-articles/my-penny-stock-prophet-review-1739548.html

You may have heard a bit about day trading in recent months or even years, but do you really know what it’s all about?  Due to the allure of quick turn-around on investment, learning how to be a day trader is something that millions of people are jumping into.  But does that mean this is right for you?  Let’s take a look at day trading to see.

At the most basic level, a person considered to be a day trader typically uses a brokerage firm to leverage market momentum.  In day trading, actual trades have a short lifespan, with traders ending each day with no positions at all.  This is where the term “day trading’ comes from.

Recently, online trading has made it a bit easier to learn how to be a day trader, how to read stock reports, and basically how to become your own broker.  It is estimated that there are over seven million people in the United States alone who engage in online trading.  Of this estimate, day traders number around 10,000 people.  Why such a small number compared to the overall population of online traders?  Well, day trading is much more risky and time consuming than tradition stock market buying and selling.

To invest here and there in the stock market, you simply buy shares of any particular company that you so desire and then hold onto them until they are worth selling.  Engaging in the stock market in such a way eliminates the need to learn how to read stock charts and often even hiring a professional broker.  With just the basic know-how, you can easily find stocks worth investing in and also determine how long to hold on to them.

Day trading, on the other hand, requires a bit more knowledge – and a lot more confidence.  Practice makes perfect, it has been said.  This is especially true when talking about how to be a day trader.  This is not Monolopy, it is real money; money that you have worked hard to earn.  Investing into risky stocks is something you want to do with confidence.   And with the volatile nature of day trading, should you decide to jump in; you need to be prepared to win big, but also to lose big.  If you’re not set up financially to possibly lose all you have invested, then maybe sticking to traditional trading may be a better choice to begin with.

There are a few things to take into consideration if you feel you are ready to figure out how to be a day trader.  While you don’t have to be technically savvy to work at day trading, it does help to be adequately connected.  This means that you need a high-speed internet connection wherever you plan to do your online trading.  Day trading is a task that requires constant attention throughout the day.  A matter of mere seconds can affect your stocks for the day; and hence, your money.   Be sure your internet connection is good and works at the fastest speed possible.  This goes for your actual computer as well.

To be a successful day trader, you will want to know how to read stock charts.  You will also need to be up to speed with the language of trading.   To make sure you are well versed in trading; subscribe to RSS feeds from sites containing the most up to date stock market information.  CNN is one good place to start.  Reading the daily stock report as well as stories in the financial section of your favorite newspaper is also a way to brush up (or learn) on your investment lingo.

Learning how to be a day trader is not extremely difficult; it is just something that requires time and commitment.  Investing in yourself to learn what it takes could pay huge in the long run.

Shane is a financial advisor, stock broker, and professional consultant. He enjoys reporting on the latest stock market happenings and offering advice to both fledgling investors and experienced day traders. Visit his site to learn more aboutDay Trader and How to Buy Stocks

Article Source:http://www.articlesbase.com/day-trading-articles/is-day-trading-for-you-1730249.html