With all the well documented penalties that are dished out by google to sites that pay for links just wanted to clarify a few things and make sure that I don’t fall into that bracket.
Link exchanges with relevant sites
Article submissions with links through out content
Directory submissions to trusted high ranked sites
Are the above any way frowned upon by google and do I risk loosing rankings using these methods?
You shouldn’t encounter too many problems using those methods, but remember that following the Google Panda update, duplicate content across multiple sites is frowned on. Rather than getting a whole article reposted on other sites, you might be better off with just a teaser or feature, giving a link to the full article on your own site.
Depending on how you are syndicating your content to other sites and your relationship with them, you may be able to get the other site to use the rel canonical tag pointing back to your site to give your original article the credit. This will help the article on your site to rank the highest. Most often though this option is not available to you, but you can at least ask.
Google has gone on record over and over again that link plans with the intention of manipulating the search results of Google in terms of service and take action against web sites algorithmically and this manual. Google also said that webmasters do not check every link. This may be the reason for what sometimes delay or can not say this for the complete elimination of a Web site from the index, although the site has many links bad.
This just looks like some traditional SEO to me. Nothing wrong with this approach that will give your website a penalty. The Article Directories received less link juice power after Panda update but that doesn’t penalize your website, just means you will need to do more link building.
From the mentioned three of the techniques if you are to submit an article with too many links may result into deletion or against the rule of the article website. So make sure to have maximum of 3 links for each article or in accordance with the rule of the article website.