Several banks have warned customers that the single currency could fall much more rapidly than expected so far. French bank BNP Paribas believes the euro will reach parity with the dollar at the beginning of next year.

The opinion of this bank is extreme, but it is not alone in thinking so. Barclays Capital and Standard Chartered – both well respected in the field of foreign exchange – have also cut its outlook for the euro. Both expect the euro back down to $ 1.20 over the next month compared to the previous forecast of $ 1.35 and  become  one  of  the best penny stocks  for  dummies to own.

A key factor in this change of perspective is the fear that central banks have been pushing the euro over the past few years, could now be concerned about the fundamentals of the euro and decision-making processes in the region before the crisis Greece’s debt.

But if the euro falls, it is not necessary that central banks sell their dollars the collected, which represent one third of its total reserves. Nor do they have to stop buying the single currency, namely the euro.However a financial collapse never really creates any good penny stocks. It creates too much uncertainty to present a solid buying opportunity.

Gathered in this city at midnight Friday, the leaders of the European Union sealed the rescue of Greece, 110,000 million (U.S. $ 145,000 million), allowing the money to be delivered in the coming days and quickly turning their attention to spread of countries like Portugal and the European banking system. The  euro  may become the next

The leaders agreed to create a “stabilization mechanism” that would be created before the markets open on Monday. It gave few details about the mechanism, although French President Nicolas Sarkozy said the bloc’s response to the crisis “will include all the institutions of Europe”, adding that the euro is facing “its most serious crisis since its creation,   this  is  important news  for  those who trade penny stocks  for  dummies.”

One possibility for part of the stabilization mechanism is a direct loan from the European Commission’s, executive arm of the European Union, which would be guaranteed by European countries. A similar structure was used in earlier bailouts of countries that are not in the euro zone, such as Hungary.

The eurozone leaders also agreed to another round of long-term measures, including a commitment to accelerate cost-cutting over the bloc and to create more effective sanctions for those who violate its debt and deficit limits, such as Greece and others have done for years.

If the penny stocks price is low compared to historical data of prices and the substantial value of the company is still the same, the penny stock may be undervalued. If you are interested in a particular penny stock and the majority of analysts and advisers assign a value to the stock that is higher than the current price, now is the time to buy.

As you become more familiar with the stock picking process you will be able to pick stocks on your own, but for now you will have to rely on the analyst,s stock picks. You simply do not have the skill or resources at this point to sift thru the myriad of pink sheet and penny stocks in order to come up with winners. Finding the best penny stocks for dummies is a painstaking process, and the beginner would be well advised to use all of the free resources, namely newsletters ,, at his or her disposal in order to be successful.

Having survived the month of March of 2009, investors have seen the market have a rally of 60% generating a dilemma in their decisions. What will make the best investment for 2010?. Should we buy the stock and mutual funds that performed best last year, expecting them to behave the same way, or sell everything for the inevitable correction?

Many financial experts expect a market correction this year. What I recommend is to build a balanced portfolio with good exposure to stocks with great potential and with stable dividend policies.  Anyway, take extreme care not to fall into the temptation to watch the winners of last year,as the default best investments for 2010. Too many people use this reasoning as a cop out to not do their proper research and due diligence.

Already in a new year, many analysts and investors agree on two things. First, we are not so so far from another recession and the second is that there will be another 60% recovery of the financial market.

After all we are still in the grips of a global recession. So is it wise to make any sort of investment moves at all. The reality of it all is that the global economy remains on very unstable footing. This will lead to increased and prolonged market volatility across all sectors off trading. Only the most nimble and dedicated penny stock traders can Survive in this environment. The coming year will not be for the faint of heart, or investors with low monetary funds. It will take sometime to adjust to the new pace off the market. Those who have always favored the long term approach may find themselves stranded, by a market that is more concerned with the short term events then long-term outlooks.

More than ever investors really need to assess their tolerance for risk in 2010. The market promises to be a bumpy ride that will redefine the rules of successful stock market trading. Those with lower appetites for risk should seek the safety of mutual funds. While those who still desire quick returns can still continue to engage in penny stocks speculation.