How to Invest During a Recession by Jaime Reina

America is spiraling downward into a recession. Some say we are in the recession now, but that is a matter of opinion really. So what are we supposed to do during this economic downturn. Many of us invest for a living and need to find good opportunities for investing to continue making an income. Luckily, in every situation, there is always a method of investing that is both safe and profitable. It just so happens to be in my area of expertize, penny stocks.

Why penny stocks? You see, during this recession, you are going to see tons of really big companies do really bad. The little companies on the other hand are still under the radar and will not suffer as badly because of our economic situation. In fact, many of them will gain a ton of momentum because of it! Because of my involvement with penny stocks, I have been able to keep investing with little worry of failure. You will not see me turning in dozens of applications during this recession.

So how do I do it? There a couple little tricks I use to find penny stocks that are still safe investments. The first of which is trend investing. I simply look at a stock prices history and identify a trend. A trend is any repeating pattern in the stock price that you can use to predict the price's future. If the trend is unaffected by the recent stock market problems, it is a safe investment. It is just a little method I have developed recently and it has been working wonders!

The second thing I look at is actual trade volume. If a stock maintains it's trade volume, even through all of this mess, it will make a good investment. So you see, you can still invest during a recession. You just have to change it up a little.

It is during times like this that resourceful people who take the time to adapt to there situation make the really big bucks that can be made in investing. Sure, anyone can make a few bucks when times are good, but now is when we will see who is going to be the next big investor that everyone looks up to!

If you need more help or want more advice, you can find one of my favorite tools I use all the time to invest in penny stocks here: Doubling Stocks. I use this tool in just about every investment I make and highly recommend it. Thank you for reading and good luck investing!

for more information visit to:

http://www.squidoo.com/doublingstock

How to Invest During a Recession by Jaime Reina

Trading Rule Part 2 - Set the Difference Between Novice and Professional Trader

From the previous article, I mentioned 4 trading rules, no 1 – Always do market research, no 2 – Limit your trading size, no 3 – Give your trade a reason, no 4 – Set exit level.

Please refer to here to find out more.  

In part 2, I would like to share certain rules that I follow after I have entered the trade.

Rule 5 - Never average out a losing position

If you are having a losing position, try to minimize the loss by cutting the number of position, never add on to it so that you average out each options price. Many people think that they can salvage the trade by adding on to average out each unit price, this is self deceiving, and you might end up doubling your loss easily. Do not hold on to the losing position, you can either cut the position size or accept the failure, move on to another trade quickly.

Rule 6 - Always update yourself with the Economy Calendar

Financial market is always influenced by the economic event, for example, jobless claim, FED meeting, oil inventory, housing start, and etc. These are the regular report that will affect the overall financial market, therefore affects your decision of when to enter and exit the trade as well.

Rule 7 – Always updates yourself with the Stock News

After checking the broad economy view, now zoom into your stock news. You need to understand how the industry and the sector are performing at this moment. After that find out the latest news of the particular stock you trade, in order to understand if it is the best or worst performer in this sector. Keep yourself update with the company news, certain decision from the CEO or board of director definitely will affect the stock performance. 

Rule 8 – Always do analysis after market close

In previous article, I mentioned that we always need to do market research before market open. Now I would like to stress the importance of your stock analysis after market close. The market determine its price only when it close, this is the price that every buyer and seller agree after the war of tug. I usually like to use candlestick chart pattern to confirm if tomorrow I would enter the trade or exit the trade, because you only see the chart pattern after the market close. For example, how can you confirm that today is going to form a bullish engulfing pattern? You know it only when the stock rise up and exceed the open price of yesterday session until the end of the day. Therefore, you can have a better gauge after market close.

For part 3, please find out from TraderWork.com. Always trade with your passion! 

Trading Rule Part 2 - Set the Difference Between Novice and Professional Trader