BIG BANG for Your Pennies!
Technology stocks are in universally high demand to solve major problems short term and long term.
For this reason, such stocks are volatile/cyclic by nature in that they are subject to fads or 'hoard mentality trading' by investors for a period of months to several years.
Other sectors of stocks like green (renewable energy), gas, oil, minerals, and precious metals are also highly desired and can become high demand in economic downturns. One to several whole sectors of stocks will plunge in value for months or even years, while other sectors of tech stocks will explode over the same periods of time due to hoard investing of such stocks.
Since technology is in such universally high demand to solve critical problems facing societies over the long term, technology stocks hold the key to the highest potential profits in the foreseeable future for the Extraordinary Investor.
Technology stocks, in general, have been plummeting since late 2007 and began slowly recovering in 2009 to this day.
They did not plummet because technology is all the sudden not needed anymore. The reason for this is the depression of the economies of the world, which started with the US market.
How does this down turn in the economy affect technology stocks?
• For one, investment capital dried up - vital for continued development of new technologies and to continue operating as a business.
• Traders began avoiding stocks, but mostly penny stocks. Traders instead either stayed out of the stock market, or invested in those stocks that remain secure, or as a hedge against a recession, such as precious metals.
• New fad sectors of stocks were formed in the economic downturn taking money away from technology stocks. Hoard investors took their money out of other high demand stocks to invest in stocks that act as security blankets of a potential economic collapse.
Energy stocks and precious metals are two sectors of desirable stocks that are now fads created by the economic depression. These two sectors are attracting traders and investors by the hoards. Those stocks and commodities are presently way over-valued except for the preceived value placed by these emotional investors.
Fads or Hoard Investing is created by clustered or universally perceived high demand. Right now we see that hoard investing being acted out in energy and precious metals stocks.
In the future though, as the economy improves, investment money will again return to Technology Stocks.
The entire world is holding its breath waiting for solutions to world crisis situations that involve depletion of natural resources, weapons, diseases, environmental problems, transportation, computing, communication to name a few. This demand has not changed, but has actually increased greatly. Is it any wonder that investors crowd to invest in stocks with such high potential to meet such great human demand.
For the time being, the economic downturn has created a vacuum as money is taken out of tech stock and put into energy and precious metals.
The trend for technology is way up, even though temporarily down.
Technology is now, and will escalate into, a major player, as a means to help solve the problems facing civilizations and the world. This premise is true unless society chooses instead to revert back to living like the Native Americans or American settlers did in times past, which is unlikely to happen even though this idea has a certain appeal.
History shows that it is always more difficult to create a desire to go backwards, to undo the advances made to life's pleasures and benefits, as a person or society. Only an impending disaster may alter such demand... Wealth once gained is addicting with a desire for more.
Considering the importance placed on technology to solve world problems, how will the Extraordinary Investor in penny stocks use this knowledge to create successful investments now and in the future? What follows on this page will answer this question.
In this present economic depression, most investors are distracted by the fad stocks - energy and precious metals. Even so, at least some exceptional technology stocks will always explode in value as news comes out about them. This economic downturn, then, is an excellent opportunity for the extraordinary investor to research and invest in tech opportunies that solve major human needs while other investors are distracted by fad stocks.
Taking advantage of others is easiest when they are distracted. Once the news it out, and investors take notice of an exceptional tech company, the extraordinary investor will already have done his homework and will be invested, or be ready to invest, in those highly desireable technology stocks.
When the economy recovers and technology stocks are again in favor, the extraordinary investor will already be well studied in the most promising technologies and companies that are working on them. This investor will once again have the advantage - purchasing shares of sleeper tech stocks at all time lows and selling once the hoard of investors pours their money into it for you to take.
Let us now turn out attention to the Financial Markets as investment opportunities in technology stocks. . .
Are penny stocks traded on the NASDAQ any less quality than on the NYSE?
The answer is no... Many high quality companies are traded on both exchanges, BUT the type of penny stocks traded differs.
Nasdaq vs NYSE vs AMEX vs OTC vs ??? - What will the Extraordinary Investor Choose MOST for successful high profit investing?
The extraordinary investor will favor the Nasdaq over the NYSE by far.
Simply because more exploration and developmental technology stocks are concentrated there. Those are the kinds of penny stocks that commonly experience explosive trends.
In addition, technology stocks represent those companies that are the wave of future demand simply because technology is making such huge strides in every area of society at a faster pace than ever to meet crisis needs. Renewable energy, pollution, motor vehicles, internet, computing, new safer, stronger materials, and so much more are tech related wonders that have been produced, and must continue to be developed if societies as we know them are to survive or continue to move forward, to meet public demand, and to adapt and thrive.
Far more so than the NYSE or AMEX, the Nasdaq is highly tech related.
Major technology stocks are traded on the
NASDAQ. In computing and internet alone we have Microsoft, Intel, Sun Microsystems, Apple. As well, many small technology stocks are traded there. So, you are definitely going to find many more potential explosive trending penny stocks between 50 cents and $3 on the Nasdaq then on the NYSE or AMEX.
Technology Stocks: My personal reasons for trading on the Nasdaq over the NYSE
NOTE: Consider what I write here about my experience with investing in biotech as an example for successful investing for you...
I personally enjoy studying good penny stock companies that are positioned to make a positive difference in people's lives now and in the future. I especially love studying developmental biotech companies and the products they are developing. I am getting first hand information on new technology that may one day treat or cure diseases that have been devastating people, plants and animals for thousands of years. I look back on history and easily contemplate the already enormous benefits to plant, animal and human life through biotechnology.
Through my biotech research, I continually learn about new biotech advances that will enhance life that are presently only fantasized about. For instance great advances are being made in treatments and vaccines against many forms of cancer, brain diseases like Alzheimer’s, diabetes, HIV, herpes, high blood pressure, etc.
For thousands of years these diseases of mankind have claimed so many lives with great suffering and death. I love searching bio technology stocks for these important reasons.
Biotechnology developments saves so many lives. In humans, diseases that once plagued mankind with untold suffering, disfigurement and death are now highly controllable because of biotech developments such as vaccines, antibiotics and other medical interventions.
Vaccines alone have saved countless lives over the past centuries and decades against deadly or debilitating diseases like rabies, typhoid, polio, diphtheria, smallpox, measles, mumps, and rubella, plague, hepatitis, pertussis (whooping cough), tetanus, rotavirus, influenza, meningitis, pneumoniahe amongst others. Such diseases once caused untold suffering and death for thousands of years, even wiping out entire populations.
Bio technology stocks are that sector of stocks that are credited with most of these major angelic developments for the benefit of mankind despite the fact that biotechnology is not perfect.
The disappointments of biotechnology are far outweighed by the overall benefits provided to billions of people and to civilizations as a whole. The benefits of the mistakes made are are that societies have learned from those mistakes, which translates into more thorough studies and continued advances in safety and benefit from biotechnology than ever before.
Just like vaccines, antibiotics (topical, oral and intravenous) have been developed to treat so many bacterial diseases that have long devastated mankind such as sexually transmitted diseases, and many forms of bacterial infections of the skin and organs of the body.
In the future though, I believe antibiotic use will decline as vaccine technology increases to treat almost every disease known to mankind with less side affect than antibiotics. Less side affects because vaccines train the body to heal itself - this is the more natural approach that leads to safer lasting results.
Just within the past 10 years bio technology stocks, private companies and universities, with financial aid and support from public, political, government and private sources, have developed many types of new vaccines that affect the immune system in ways unimaginable until recently.
For instance, highly successful vaccines have already been developed for HPV, Anthrax, H1N1 influenza, Yellow Fever, herpes Zoster, and human papillomavirus (HPV). Vaccines against cancers are just around the corner. Radiation therapy already is considered as a barbaric procedure in comparison to these new vaccines.
Within the next 10 years, I sincerely expect vaccines to be produced that will at least render such viruses as herpes and HIV harmless, cure at least several types of cancer, and will eventually even be used as nano-carriers of what is needed to genetically alter human genes for greater health, immunity and longevity.
My enthusiasm is an example of your Enthusiasm - the result is very successful trading that is fun.
Well I have written quite a bit here on biotechnology stocks so, I guess you can tell that these are the kinds of technology stocks that interest me and are so exciting for me to research and study.
Take this as a lesson: Try to develop a deep interest in a sector of stock you desire to invest in, so that you will desire to study and research such stocks. This is the kind of specialization that creates millionaires.
My chosen field of study makes investing fun and rewarding for me over the long term. Your specialty of interest could obviously be different than mine. Everyone is unique. And that is okay, because many highly profitable stocks developing and producing high demand products and services exist that need investment support, not just biotech stocks.
Since I specialize in bio technology stocks that develop products to keep or make people healthy, then I will screen the financial markets for developmental type technology stocks that are biotech related.
I personally study, watch and trade most penny stocks listed on the NASDAQ and also the OTC BB because I am particularly searching for outstanding biotech stocks that are under $3.00 per share - developmental or exploration.
Nasdaq vs NYSE vs Etc - My Advice to You.
Whatever sector of stocks you choose to specialize in - whether NYSE, Nasdaq, Amex or OTC BB, or a foreign traded stock, you are better off researching and trading in a stock and sector of stocks that you are able to find solid in depth information.
The sector of stocks, or stock, you are interested in should not already be a hot fad at the time. Rather, become familiar with, study and trade within a sector of stocks, or a stock, that:
• has plunged in value within the past few years or more,
• has not yet caught major investor attention,
• is not being heavily promoted or demoted by marketeers
• has a history of at least 3 years
• information for in depth research is readily available
• is starting to recover.
• has garnered interest and relationships with government, public, private, political entities.
• has the potential to obtain financing on good terms when needed.
• has a fair to favorable financial statement
• has products/services in development that studies show have great promise for meeting great demand by society.
• has knowledgeable and creative management
• are able to use their money wisely/frugally to achieve maximum effect/results.
You are looking for a sleeper stock in a sleeper/recovering sector of stocks to invest in with huge potential demand. This investment strategy will help insure that you will invest for the highest low risk potential returns - the biggest bang for your pennies!
Watch for cyclic Trends! Technology and exploration stocks commonly explode in value over a period of years and then plunge in value for several years. These cycles are common, so search and find the cyclic patterns in techonology stocks and then take advantage of the cycles for profit potential.
The NASDAQ contains what I feel to be the most valued penny stock companies that are shining lights in the biotech, mining, green sectors, energy, clean environment advances, military and internet then on any other types of the USA stock exchanges.
Similarly, OTC BB contains those gems that are most prone to explosively trend 30% or much more on exciting news. More on the OTC BB later.
In contrast to OTC BB stocks and similar to the NYSE, good technology stocks on the NASDAQ are:
• generally easy to trade,
• usually have sufficient volume/liquidity of shares traded,
• are more likely to be genuine stocks with a future
• are less prone to stock scams by brokers and professional marketers
• are more likely to obtain financing than OTC companies
• rewards the extraordinary investor well for his/her research and investment.
So, by researching technology stocks on the Nasdaq you get comparable safety as found on the NYSE, but greater profit potential as found on the OTC BB.
You have now completed this lesson on Technology Stocks - Bright Future for Explosive Profits.
The next topic on the technology stocks main topic is the Toronto Stock Exchange (TSX). To learn why I include this foreign exchange, you will have to read it. . .
In a nutshell, TSX stocks contain mostly exploration and technology stocks in the energy and mining sectors that have great potential for very successful penny stock trades if you do your homework - especially those companies that are on the verge of finding new mining opportunities through exploration!
In addition though, as the economy improves, you will see a vast amount of money exiting out of mining stocks in particular and flowing into the fine technology stocks found on the TSX.
When you are ready then, please continue by clicking on: Canadian Stocks for Safe High Yield Profits