Check out the Market Trend Signal for yourself and do your own homework. LEARN MORE

Thank you,

Jesse Webb

For the most part the common ideas about the stock market is nothing but myth. Its false ideas that’s been started by people who don’t really know anything about it anyway. Then there is also the myths amongst traders themselves and there are a lot of novice traders who are gripped by fear – which prevents them from reaching the level of success they could. Lets quickly look at 3 of these myths and bust them wide open.

1. You need a lot of money to invest in stocks
Not true. In theory you can invest in the stock market with $10 but its not really practical or wise to do that. Its more more realistic to have at least $1000 to start with. You can give that to a broker to buy stocks for you or you can open your own online trading account and buy and sell shares yourself. You will need a minimum of $1000 to open a trading account and then you can invest as much or as little as you want.

2. The stock market is risky.
Not true. Although there is a lot of risks, its not really all that different form any other type of investment. All investments carry some level of risk and the risk-reward principle is in play at all times. To say that its the stock market itself that is risky is just plain wrong. Instead, its people’s investment decisions that are risky. The market is just the market. What you do in the market is up to you entirely.

3. You need “big hits” to make a lot of money.
Not true – although most novice traders seem to live by this idea. Think of it this way: would you take a 20% return on $100,000 or would you take a 200% return on $1000? Making money on the stock market is all about consistent profits and not about going after that one trade that will make you rich. It rarely happens.

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Sometimes trading in penny stocks can be expensive. The first thing that people should know before getting involved in the trading of such stocks is that it is a risky business, because the companies in which people are investing are undergoing hard times financially. Many of these companies are even close to being declared bankrupt. Though these stocks are inexpensive, their values can change suddenly, usually downwards. This is not the case all the time; sometimes they may also rise. So, you may be wondering why people still invest in this risky business.

Many people who invest in these stocks think that they have the capability to bring about large and quick returns. These stocks can sometimes be very unpredictable. The investor can afford to buy many of these stocks at once because they are cheap. If anyone is seriously interested in trading these stocks, then they must look for help from the companies that can provide correct and expert guidance for investors. Making the best penny stocks list can make small cap stock investments more beneficial. Thus, newcomers can save time and money by avoiding making mistakes that may prove costly later on, and this also ensures that people gain something from their investments.

10 Tips for Trading Penny Stocks:

If you are keen to know the secrets of trading penny stocks, you should pay attention to these tips.

1. You need to check out the best stocks by searching for the one that fulfils your criteria. You should start by investigating stocks that look to have good potential.
2. The stocks should have liquidity. To research this, people can look at the financial reports, key data, charts, and news articles of the company.
3. Never let your heart rule your head when picking a company for investment; instead use analysis, investigation and detailed research.
4. Look for investment opportunities where the price increases, the company grows and earns money, and find information on the specific company.
5. List the penny stocks that fulfil the criteria.
6. Pay more attention towards stocks that are being heavily promoted by stock brokers.
7. This can prove to be a beneficial tool for people in determining which stocks to purchase in future.
8. Continue to investigate and add to the list. Keep close watch on the news and newspapers to find more stocks.
9. People can make money on penny stocks if they take time to check the stocks carefully.
10. People must not lower their standards and buy penny stocks without checking them thoroughly.

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Market Trend Signal™ provides current market conditions; suggested trading for the current market conditions as well as two model portfolios to follow.  Even more important than the newsletter is the web-based software.  The Market Trend Signal software has a robust stock screener that finds specific stock trade set ups based on parameters each user chooses, or predefined parameters set by the development team.  The system has similarities to IBD and Vector Vest, which are also effective systems, but I find Market Trend Signal™ to be easier and faster to use.  There is not as much fundamental data as you might find with IBD, because the system is developed around price and I explain very clearly my book Trend Following Stocks rational for why price includes all fundamental data, and why price encompasses any and all fundamental information both known and anticipated.  The Market Trend Signal software is really focused on stocks and ETF’s although I can get FX quotes and signals as well.  I do not give futures data or signals.

The Market Trend Signal stock investing system allows you to back test stocks you’re interested in following, as well as, create watch lists of stocks to trade in the future. The back test feature displays a stocks statistical personality or trading “characteristics” within the Market Trend Signal stock trading system.  This allows investors to trade only stocks that fit their level of risk and anticipated volatility.  For example, just recently a recommendation to buy MIPS around $5 was given; it’s now over $14. TZOO at $15 it’s now over $36. Those are only a few we’ve traded. I developed an amazingly cool stock charting program within Market Trend Signal™ that shows specific Buy, Sell, and Hold signals that are color coded on the chart.  This is for over 8000 stocks as well as ETF’s.  Market Trend Signal is an End-of-Day system so you won’t have to be glued to a computer all day.  Simply get new signals each day and enter your trade order with your specific broker that night or morning. This stock trading system is not really for fast paced day-traders (although many use it to find trending stocks),  it’s designed for swing and position trading (3 days to 6-8 weeks).  This tends to give most stocks enough time to have a strong trending move.  The monthly charge for the service is $49.95 per month.  The system is easy, the picks are very high probability trades and customer support is friendly and helpful.  Learn more at  www.markettrendsignal.com

Trend Following Stocks will teach you methods that enable you to always be on the right side of each trade. Trend Following Stocks teaches a systematic investing method vs. a Discretionary one. Discretionary approaches imply that you are the edge. You somehow have a sixth sense about trades and have a lighting fast method to squash the market. You know exactly what you’re looking for and you decide when the stock is about to catapult to monstrous gains. You have cat-like reflexes as your eyes bulge bloodshot at three monitors and your caffeinated, twitching, trigger finger gets super punchy at any tick on your level-two day-trading account! You are the guru. How s that been working for you? How many times has your guru senses changed during a losing streak? How many times have you swung for the fences because you believed that this is the one? Well, there is a better, less stressful way to gain your edge. People generally lose money in the market for one reason only. They’re always on the wrong side of the trend. This happens because they accept as gospel age old investment advice such as buy and hold. Millions of investors, possibly you included, have fallen prey to this antiquated, broken system which has caused untold heartache and the loss of millions of hard-earned dollars.

Trend Following Stocks uses non-emotional, systematic method that allows you to find the statistical characteristics of stocks, allowing traders to establish higher probability trades. The core idea behind Trend Following Stocks is to tap into stocks unlimited upside potential and trade them as if they are their own market. Most modern portfolio theorists prefer that you diversify your investment capital into a combination of separate, distinct markets such as stocks, bonds, cash, metals, and currencies because doing so will mitigate your investment risk. You’re essentially throwing money at a little of everything in the hope that something works. If one market is not doing well, supposedly some of the other markets or asset classes will remain steady enough to balance out potential losses to your portfolio. Alter your thinking a bit. The concept that you will understand is that there is no need to trade separate markets to mitigate your risk. The idea that you must diversify into separate entities, markets, or asset classes in order to be considered a serious, sophisticated trader simply isn’t true. Trend Following Stocks teaches you to find highly qualified stocks, giving you the ability to trade certain stocks, over and over for diversification just as you would with traditional markets. Being diversified entirely among stocks is still considered being diversified. Take the opportunity to add a new idea to your trading and investing arsenal.

Trend following trading systems are the popular stock trading systems, which work on the stock market trend mechanism. They use technical indicators like “range breakouts” or “moving averages” to determine the direction of the stock market and to generate the trading signals. These automated trend following systems usually enter into the stock market after the trend has properly established itself. And for this reason, they miss the initial turning point, but this does not decrease their returns, as there are many “fake” turning points where the casual trader might get caught.

If there is a trend reversal, trend following trading systems either exit or wait until the turn has established itself as a trend in the opposite direction. In case of exit, they re-enter when the trend re-establishes itself. Trend following trading strategies take advantage of long-term moves.

Trend following stock trading systems have enjoyed success and growth over years and it is mainly due to those stock traders who have had the most success with these trend following trading strategies. Many famous traders like Richard Dennis, Paul Rabar, and Jerry Parker say that following a market trend is their winning trading strategy. Its reactive and systematic nature helps them to get maximum benefit from the market trend.

Base your trading decisions on a long-term trend following system and enjoy the profits from the ups and downs of the stock market!

Market Trend Signal™ trend following stocks trading system

XEL Currently has a BUY Signal

Market Trend Signal™ trend following stocks trading system

Without a doubt options can be much “safer” than trading stocks, and often times “safer” than even your mutual funds….and ten times more profitable. I’m constantly preaching trading options like a business, not a slot machine. With defined objectives and rules that are followed religiously, there isn’t a better way to create long-lasting financial independence.  Learn More Here

In just a moment I’ll tell why my system is different than other systems you may have tried in the past, and how you can use it to potentially get rich in a very short period of time. If you are new to option trading, please consider the following reasons why you should get involved now!

7 Reasons Why You Should Consider Option Trading!

You can make more money – faster – in a bad economy

1. Good economies are still a cash-cow
2. There is no overhead
3. No employees
4. No boss breathing down your neck
5. You can do it from anywhere in the world…all you need is a laptop
6. You can get started on a shoestring

Complex or Simple?

Option trading isn’t a fad or gimmicky business that will be here today and gone tomorrow. It is a proven investing technique that has been used for more than 70 years by the “super-wealthy” to exploit market swings for 100% to 500% gains in a matter of weeks. I’m talking about institutional investors, hedge fund managers, and private equity have all used options to make a fortune.

Despite a wide-spread belief that options are complicated, they are actually very simple. Sure there are those who believe in “efficient markets” and employ sophisticated “option pricing models” that are theoretically “fool-proof”.

But it was reliance on these “fail-safe” models that caused the collapse of Long Term Capital Management in 98′ and once again damn near brought down the “house” as the sophists behind these pricing models divided up sub-prime mortgage paper and “miraculously” turned it into AAA paper.

The only thing we’ve learned through all of this, is that the “efficient market theory” isn’t efficient at all, and eventually blows up in your face. Markets are NOT efficient. How can they be when they are made up of a bunch of tightly-wound human “creatures” whose emotions of greed and fear often hit ten on the Richter scale? When you understand that the market constantly gyrates back and forth between these two emotional extremes, using options to grow wealthy becomes a very simple and predictable process. It may come as a shock, but greed & fear are patterned and repeat over and over in every stock…..in every market…..and in every time frame, from a one-minute chart to a multi-year chart. I’ll tell you all about it in just a moment. But first a word from the worlds richest man.

Warren Buffet Says It All!

Option traders can’t be value investors, or any kind of investor for that matter. Outside of the next month, maybe two, we don’t care at all what happens to a stock. However, the greatest value investor of all time, Warren Buffet, summed it up best when he said “be fearful when others are greedy and greedy when others are fearful”! This is the “rock” upon which I’ve built my system. When a market or stock has been stretched too far to the downside (fear) we buy calls which increase in value when the market rebounds. When it has been stretched too far to the upside (greed) we buy puts and hit the mother-load when the market catches a dose of reality and begins to fall. What’s crazy, when you know what to look for, these opportunities are endless. Every single day there are stocks ready to move 10% to 30% that could result in a 100% to 500% gain trading options. Where else can you find that kind of opportunity?  In just a moment I’ll share with you the very method I use to identify extremes of greed and fear with dumb-founding accuracy – making option trading very simple, profitable, and something that anyone can do.

Average Everyday People Are Using Options To Make a Fortune!

I’ve personally taught my system to thousands of ordinary people just like you. Some have never graduated from college, others hold Ph.D’s. Some are doctors and lawyers, others are mechanics and nurses. What they all have in common is this incredible money-making secret – a secret that has landed each one of them on the path to total financial independence. Like the single dad from Chicago who made $11,500 in profit on his very first option trade and then went on to make $44,000 over the next two months! Now he spends more time raising his son. Or the retired engineer from Florida who cleared $130,000 his first year trading options working only a few hours each day. How about the Michigan couple who sold their home, bought a motor-home and traveled the country trading options and making as much as $11,000 per month. Then there was the Canadian who averaged $7605 in net profits each month for his first six months. We caught up with him about a year later and he was making as much as $4,000 – $5,000 per week trading options.  Learn More Here

So regardless of your age, gender, background, or education, option trading could hold the key to an abundant and prosperous future for you and your family. It truly is the last bastion of financial independence, especially for the little guy.

Option Trading  101

If you are new to option trading here are the basics. An option gives you the right but not the obligation to purchase shares in a specific company at a specific price before a specific date.

Maybe you’re familiar with a lease option on a home where you put up a small “premium” for the right, but not the obligation to buy the home at some point in the future. If the home appreciates you can exercise your option to purchase the home and realize a profit. If the home drops in value you can walk away losing only the “premium” you paid. Boy, I’ll bet a lot of real estate investors are wishing they’d used options during the real estate boom rather than buying the real estate itself.

Who would have thought that an option on a home would prove to be safer than investing in real estate. The same is true of stock options, they give you the right, but not the obligation to buy the stock. Therefore, you only have to put up a fraction of what the stock would cost, making it much safer than investing in stocks.  Learn More Here

You may know already that a share of stock is essentially a portion of a company. The stock holders are the owners of a company. In theory, the owners (stock holders) make money when the company makes money, and lose money when the company loses money. Once there was age of internet stocks where companies lost lots of money but the shareholders still made lots of money (and then lost money themselves), but let’s just say that the main trick is to buy only stocks that go up.

Next we will walk through a stock purchase and sale to illustrate how you, an investor in stocks, can make money–or lose money–by buying and selling stocks.

One fine day you decide to buy shares of some stock, let’s pick on AT&T. Maybe you think that company will soon return to being the all-powerful, highly profitable “Ma Bell” that it once was. Or you just think their ads are cool. So now what?

Although there are many ways to buy shares of stock, you decide to take the old-fashioned route of using an old-fashioned stock broker who has an office in your town and (imagine!) takes your phone calls. You open an account with your friendly broker and deposit some good old-fashioned cash. Let’s say you deposit $1,000.

You ask your broker about the current market price quoted for AT&T shares. Your broker is a good broker, and like any good broker he knows that AT&T’s ticker symbol is the single letter ‘T’. He punches T into his quote request system and asks for the current market price (supplied from the New York Stock Exchange, where T is primarily traded), and out pops a price of 20.25 (stocks were once quoted as fractions like 1/4 but are now done with decimals). Looks like your $1,000 will buy almost 50 shares, but because this is your very first stock trade, you decide to buy just 10 shares.

You ask your broker to buy 10 shares for you at the current market price. In the lingo of your broker, you give a market order for 10 shares of T. Your broker is a nice guy and only charges a commission on a single stock trade of $30 (not too bad for someone who takes your phone calls). Your broker enters the order, and his computer then figures the price you will ultimately pay for those 10 shares, which is 10 (the number of shares) times 20.25 (the current price for the shares on the open market) for a total of 202.50, plus 30 (the broker’s commission, don’t forget he has to eat too), for a grand total of $232.50.

Then magic happens: your broker instantly finds someone willing to sell you 10 shares at the current market price of 20.25 and buys them for you from that someone. Your broker takes money from your account and sends it off to that someone who sold you the shares. Your broker also takes his $30 commission from your account. In the end, your hard-earned money is gone, and your account has 10 shares of AT&T. A (very small) fraction of the company, as represented by those 10 shares, is now in your hands!

Now it’s time for a few details, which you can safely skip if you choose. The person who sold you the shares was a specialist (“spec”) on the NYSE; for more information, look into the NYSE’s auction trading system. Roughly, a specialist is a type of middleman and a member (like your broker) of the financial services industry. After you give the order, the shares do not appear instantly; they appear in your account three business days after you gave the order (called “T+3″). In other words, trades settle in three business days.

Please pardon a fair amount of oversimplification here, but the trade and settlement procedures involved with making sure those 10 shares come to your account can happen in many, many different ways. You’re paying that commission so things are easy for you, and indeed they are: for a relatively modest fee, your broker got you the shares.

It may be important to point out here that AT&T, that big company from Bedminster, New Jersey, did not participate in this stock trade. Sure, their shares changed hands, but that’s all. Shares of publicly traded companies that are bought on the open market never come from the company. Further, the money that you pay for shares bought on the open market does not go to the company. Sure, the company sold shares to the public at one point (an event called a public offering), but your trade was done on the open market.

After the trade settles, then what? Your broker keeps some of the $30 commission personally, and some goes to the company he works for (most trades are done online now and are much cheaper, $7-$10). The shares are in your brokerage account. This is called holding shares “in street name.” If you really want to hold the stock certificates, your broker will be happy to arrange this, but he will probably charge you about another $30. Since you feel you’ve paid your broker enough already (and you’re right), you decide to leave the shares in your account (“in street name”).

The next day, AT&T shares close at a price of 21, which is a rise of $0.75. Great, you think, I just made $7.50. And in some sense you’re right. The value of your holdings has increased by that amount. This is a paper gain or unrealized gain; i.e., on paper, you’re $7.50 wealthier. That money is not in your pocket, though, and you do not need to tell the IRS. The IRS only cares about actual (realized) gains, and you don’t have any, not yet.

The following day, AT&T shares close at a price of 22, which is another rise over the price you paid and a rise over the previous day. Fantastic, you think, boy can I pick them, today I made another $10! At this point, you have a paper gain of 10 times 1.75 which is 17.50. Not too bad for two days.

That evening you decide that maybe AT&T really isn’t such a great wireless phone company after all and it’s time to sell. You make a call the next morning, and although your broker is a bit surprised to hear from you again so soon, he’s obliging (after all, it’s your money). Again your broker asks for a quote of the current market price for ‘T.’ The current market price for AT&T on the NYSE is 22.50 (wow, another rise). Your broker accepts your order to sell T at the market. Again his computer figures the money you will receive from the sale: 10 (the number of shares) times 22.50 (the current market price) for a total of 225, less his commission of 30, for a grand total of 195.

Magic happens again: instantly your broker finds someone willing to buy the 10 shares of AT&T from you at the current price, and sells your shares to that someone. That someone sends you $225. Your broker deducts his commission of $30 from the proceeds of the sale, so eventually the shares of AT&T disappear from your account and a credit of $195 appears. Note again that the company did not participate in this trade, although shares (and fractional ownership of the company represented by those 10 shares) changed hands.

As explained above, that someone was a person at the NYSE called a specialist (“spec”), a member of the financial services industry. The trade will be settled in exactly 3 business days (upon settlement, the shares are gone and you have the cash). Again I apologize for the oversimplification here.

So you calculate the result. You think, wow, the stock went up every day.. and I paid $232.50.. but I only received $195.. and pretty quickly you come to the inescapable conclusion that you lost $37.50, even though you had a paper gain every day. This is the problem with commissions: they reduce your returns. You paid over 15% of your capital in commissions, so although the share price rose about that much in just a couple of days, you lost money because the commissions exceeded the gains.

Eventually you do your taxes. You have a short-term capital loss of $37.50 from this pair of trades. Depending on your tax situation, you may be able to deduct your loss from your gross income.

Now you should understand the basic mechanics of buying and selling shares of stock, and you see the importance of commissions.

Just for comparison, let’s run the numbers if you had bought 50 shares instead of just 10 (maybe you found another few dollars). The purchase price of (50 * 20.25) + 30 is 1042.50. The sales price of (50 * 22.50) – 30 is 1095. The difference is $52.50 in your favor. What this says is that commissions can really hurt the small investor, and is a good reason for really small investors to consider investing via no-load mutual funds or direct investment plans (DRIPs).