Despite the misleading hype you may find on the Internet, trading penny stocks online may be more risky than trading normal stocks. This is not a get-rich-quick scenario and if you treat it as such you could very well suffer the consequences.
Penny stocks are traded via something called an Over-the-Counter Bulletin Board — often simplified as the OTCBB — or perhaps via Pink Sheets. The low value of these stocks indicates either brand new corporations or corporatations which are in a struggle to survive. New companies sold on these boards haven’t yet proven themselves ready to be traded on the NYSE or NASDAQ. Older companies traded as penny stocks may have been penalized and removed from those major exchanges.
When you first begin your journey towards penny stock fortunes, I suggest you look for stocks within an industry you understand from previous unrelated experience. Consider your hobbies and interests and even previous responsibilities. Then create a list of companies associated within these areas of your knowledge. Then start collecting data and monitoring their chart performance without any intention of selling or buying penny stocks.
You want to watch for patterns in their chart behavior. You’ll notice companies in the same industry will exhibit some behavior similarities. Continue reading
Most people become interested in buying penny stocks online because of the potentially high pay off that can come with these stocks. But these stocks also have a great down side. Because of the nature of penny stocks many people try to game or manipulate the system to their own advantage, but to the detriment of the other stock holders and sometimes the company of the stock they are gaming.
Before you get too excited about the idea of buying penny stocks, you need to understand what a penny stock is as well as the potential risk involved in trading this particular type of stock.
These tips should help you be aware of some of the risks and pitfalls involved in this market, and help you buy more successfully. Continue reading
As many of you who followed my blog probably noticed, I never fully fleshed out this new site when I moved here from my blogger blog. Did I just slack off? Well, maybe a little.
But the real reason for this was that I’ve undergone some intensive study of the penny stock industry in recent months that has led me to create some fundamental changes in the way I approach trading penny stocks and the way I feel about the industry. Continue reading
Regular readers will have noted some of the changes on Day Trading Penny Stocks. Additionally, you’ll notice several posts are no longer here.
I am in the process of updating and improving the content of this site. Don’t worry: all the content will return soon along with some new and updated content. Continue reading