Buying OTC Stocks – Where The Energy Profits Can Be Hiding

The stock market is the place where you should be if you want to gain more money by investing. As a matter of fact, there are many stocks to choose from in the world of the stock market. And one of these is the OTC stocks.

stock-certOver-the-counter stock, or simply known as the OTC stock, is actually a traded security but not in the AMEX, NYSE or TXS formal exchange. It is a stock which is being traded through a particular dealer network. It may also mean the security concerning debts like the traded derivatives. OTC stock is appropriate if a certain small company cannot meet the requirements on the exchange listings. Thus, it is being traded only by the brokers who straightly negotiate with each other through phone calls or computer networks. You can find many small new energy stocks via OTC which could offer spectacular returns, but also plenty risk.

The ways on how to buy OTC stocks are very much different from buying other companies’ stocks. It is because OTC stock is not listed which means that there is really no central market exchange. And this is the reason why sometimes, OTC stock is also called as the unlisted stock. The market makers are the ones who are responsible for taking all OTC stock orders. They facilitate trading by carrying security inventories with them.

If you want to buy OTC stocks, you must first open a brokerage account. There are two means of investment procedure, namely the full-service broker and the discount broker. Your broker will then be the one to work with the appropriate market maker to assure you of a successful transaction process.

After you have placed your market order with a particular broker, a security personal market maker should be dealt by your chosen broker. It is now the job of the market maker to quote the broker regarding the bid and ask price of the security that is to be sold. The ask price or offer price is the actual price in which a certain seller will accept for a security. Also, the ask quote will specify the amount of the security to be sold. On the other hand, the bid is the dealer and trader’s offer or even your offer to purchase a particular security. It will specify the quantity that will be purchased as well as your preferred price for the security. You can monitor both the bid and ask quote via the accessible Over-The-Counter Bulletin Board or simply the OTCBB.

The broker will then agree to the quoted price given which is considered to be a market order. Afterwards, the said broker will transfer to the account of the market maker all the funds needed with credited securities. If you want to sell a particular OTC security, you are free to do so by just placing the stop orders or limit orders for the securities of the OTC. This is somehow important in limiting the prices.

Indeed, though investing in an OTC stock seems to be dicey, still it is the simplest way on how to invest money in the world of stock market. Thus, many are attracted to invest in such form of investment.

Why A Publication Can Help With Stock Picks

“Every gambler knows that the secret to survival is knowing what to throw away and knowing what to keep. Because every hand’s a winner and every hand’s a loser…” Boy, is any song more true this year. Two traders could have traded the exact same stocks all year and the results would have been vastly different depending on their timing. If there was ever a year which highlighted the need for understanding basic fundamental and technical analysis, this was it. Basic fundamental analysis compels you to only trade quality, no matter how good the charts look. Remember, the dot coms looked technically sound for much of the year, but many of their prices are now under $10. Just last year, these same stocks moved that much in an hour.

The fundamental problem for these companies is that they had no earnings. Earnings drive the stock price over the long run. Their eventual doom was sealed because their business model did not work. Yes, a lot of people made plenty of money on these stocks, but like the game of hot potato, the person who holds the potato at the end of the game loses. How could you avoid this situation? Only trade stocks that have solid earnings and are in sectors which will grow over the next several years.

When you buy these solid companies, you protect yourself because if you do pick a bad entry point and quickly go underwater, there is a decent chance that the quality will come back. The easiest place to check out a company’s earnings compared to other companies in its sector is the Investor’s Business Daily. This paper also ranks and charts industry sectors.

Market Outlook for Oil, Gold and Base Metals

Crude oil futures fell slightly during the week, as traders weighed stronger U.S. economic data against the modest decline in oil inventories. Oil prices were buoyed slightly by orders for durable goods, which rose 4.2% in June, the Commerce Department said Thursday.

The increase came in higher than economists’ forecasts of a 1.7% rise in June. Traders also looked to data from the U.K. that showed that all sectors of the economy expanded in the second quarter for the first time in nearly three years. Oil prices are under pressure as traders took into account the seasonal decline in gasoline demand that typically begins by early August in the U.S., the world’s largest consumer of oil.

Although domestic oil inventories fell by 2.8 million barrels for the week ended July 19, according to data from EIA, prices failed to rally off the data after the agency reported even sharper declines in the prior weeks. Meanwhile traders continued to keep an eye on developments in the Middle East.


Copper prices are traded on a negative note in the last week and declined around 0.7 percent on the back of slow economic growth in china and expectation decline in demand for the metal from the country. On the LME Inventories declined around 0.4 percent to 638325 tonnes and on the SHFE inventories fell 0.6 percent to 167429 tonnes respectively.

Booking for product mend to last at least three years rose 4.2 percent, three times the median forecast of economists surveyed by Bloomberg, government data showed today. The dollar drooped against a basket of 10 currencies, boosting the appeal of copper as an alternative assert. Earlier, the metal dropped as much as 0.9 percent amid concerns that demand will ebb in China, the top buyer.


This week, the Gold price has seen tremendous change of increase about 1.2 percent on account to upheld global market. Further ease in concerns from fed regarding cut in its bount buying program supported on upside in prices. Additionally, weakness in the US dollar index (dx)acted as a positive factor. The metal benefits as the dollar fell against the euro after a German Ifo survey showing business morale improved there. Data also showed new U.S. claims for jobless benefits edged higher last week, but remained within a range that suggests the labour market’s recovery is on track.