If you are like me, you see your computer and your Internet connection as a way to generate some extra income in your spare-time. There are so many opportunities available to each one of us that it makes it hard to figure out where to begin. Usually, the hard part is just picking something and getting started.
Maybe you are already trading online and having some success. That is great and is a definitely a worthwhile place to spend your time. One of the great things about online trading is that it will grow over time as you gain experience and as your portfolio grows.
One method that I use has proven to be very successful and requires maybe a half hour of time each week. This method has historically generated consistent profits on each weekly trade.
In order to pick stocks, usually individual investors analyze the prospects of a particular company. Since I trade small cap stocks or penny stocks, what I do is look at the technical indicators and try to spot a stock that is just breaking out. When I find one, I jump in. I then monitor the stock movements to confirm the breakout and hold the stock as long as I am comfortable with it. This is pretty common and there are many other technical indicators that predict an upward movement is price that you can use to select stocks.
There is another way to spot stocks that are gaining. I learned that out of every 10 small cap stocks that increase 100% or more, at least 7 of these driven by a stock promotion. This is a when a company hires an industry expert to promote the benefits of owning that company's stock.
Not many people use this important piece of information to make their investment choices. But I have found one of these stock promoters with over a decade of running stock promotions for penny stocks. And his track record is impressive, averaging over 120% over a period of years, with at least two 500% gainers each year.
Getting on his subscription list is all you need to do. He issues one pick each week. You set your strike price to buy the stock when it reaches the level he recommends. Then you pre-set your limit order to sell, so that when the stock hits the price he recommends selling, your sell is automatically processed.
I use these picks in addition to the ones I select myself and find they are a nice addition to my trading activity. I do use a stop-loss as a precaution to manage my downside, which is something I recommend doing with every trade.