How To Buy Penny Stocks
Are you willing to gamble a little bit of disposable income opportunity to earn big profits? If so, penny stocks can be an option for you to consider. While you should always use caution and do not invest money you can not afford to lose, penny stocks offer you the opportunity to participate in world trade at a reasonable amount.
What is a penny stock? It's just a stock that sells for less than five dollars per share. These shares are not traded on major exchanges (AMEX, NASDAQ and NYSE), and over the Pink Sheets (so called because of the original color of paper used). This is often referred to as OTCBB, or the OTC bulletin board. This is simply an electronic system that tells about the changes. Keep in mind that it is regulated by NASD, but not considered a stock exchange NASDAQ.
Buying penny stocks is a high-risk investments, which means that you can lose big. But it also means that you can earn very high returns in the short term. Risk and potential rewards that keep people trading these stocks. Sometimes the return may be several hundred percent per day. Risks of these supplies are limited liquidity, lack of financial accountability and potential fraud.
When buying penny stocks, the lack of buyers may make it difficult to sell shares. Lack of accountability and the volatility of these stocks to make it easier for brokers to manipulate as well. This is why fraud is so rampant these transactions. There are no regulations or listing of these shares.
Not all the news bleak, however. Penny stocks are popular because of huge returns, some investors find it. To get started in penny stocks, you first find a broker that offers this type of service. Your shares of stock will be taken from your investment account through the brokerage. You set the amount you want to invest, and decide how much investment will go into high risk stocks.
Having a broker is essential for sound advice, just do your research to find the one best for you. Make sure that someone is competent, that he wants to see you earn good profits. The best advice when investing money, just making sure you can afford to invest their money to distribute to different types of shares. If you love to play and want a high return, absolutely invest in penny stocks. You can see the highest returns on these stocks, but the risk of higher losses. Make sure you keep your money in safer markets while you are playing penny stocks.
4 comments:
This is very important to pick penny stocks on right time. Thanks for sharing its importance.
Saar Pilosof
Penny Stock Dream is not your usual penny stock picking website. We are a team of analysts and investors in the field of selecting penny stock picks. We have gotten used to seperating the ordinary from the extraordinary when it comes to the stock market, especially when it comes to researching and reviewing penny stocks trading on the OTC Market and Pink-Sheets exchanges.
Penny Stock Dream is not your usual penny stock picking website. We are a team of analysts and investors in the field of selecting penny stock picks. We have gotten used to seperating the ordinary from the extraordinary when it comes to the stock market, especially when it comes to researching and reviewing penny stocks trading on the OTC Market and Pink-Sheets exchanges.
Penny Stock Dream is not your usual penny stock picking website. We are a team of analysts and investors in the field of selecting penny stock picks. We have gotten used to seperating the ordinary from the extraordinary when it comes to the stock market, especially when it comes to researching and reviewing penny stocks trading on the OTC Market and Pink-Sheets exchanges.
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