What are penny stocks?
There are two types of penny stocks, the stocks that are currently trading under $2 and are listed on NYSE, NASDAQ or AMEX. The other type of penny stocks are called the Over The Counter penny stocks which is the type that we are going to discuss in this post. These penny stocks are also known as the OTCBB stocks or Over The Counter Market Bulletin Board.
Why trading in penny stocks?
Penny stocks are extremely profitable when you trade correctly. A penny stock is able to double, triple or even quadruple in one single day, that means your $1,000 investment can turn into $5,000 overnight. This will never happen when you buy a blue chip stock like Microsoft or Walmart. Their stock price pretty much stay the same all year long. Tim Skyes, the Penny Stock Millionaire who made millions or dollars trading penny stocks. You should watch his video on how the “pump-and-dump” scams work if you do decide to trade penny stocks.
What are the risk in trading penny stocks?
The risk of course is that you may lose all your money when you buy the wrong penny stock. The chance for a penny stock company to go bankrupt is much higher than it is for a blue chip stock. Therefore, you should only trade with the money that you are afford to lose. You should never trade with any money that you need for emergency usage.
Penny Stock Research
Extensive research is necessary to trade successfully with penny stocks. You should learn as much as you can about the penny stock that you want to buy. You should study the penny stock company’s financial statements, their competitors as well as their products. Do you think the product is something that you wanted to buy?
Penny Stock Course
If you are new to trading, I recommend you take a course in penny stocks. Learn from the expert is the easiest and the most efficient way to learn how to trade profitable with penny stocks. Click here to check out Tim Skyes’ Penny Stock Millionaire program and see if it is right for you.
Penny Stock Alerts
It is always nice to get alerts from penny stock experts so that you know what kind of penny stocks that they are buying and why they are buying it. Most of the time, they will explain to you why they want to buy a certain penny stock. Click here to get 2 FREE penny stock alerts from James Connelly.
