The penny stock market is vicious, lucrative, and captivating. The draw for first-time buyers is usually their price, which typically runs well below $5 per share. This financial fluidity means that not only do penny stocks sell OTC (outside of the NASDAQ and similar arenas), but they also trade at lightning speeds. Still, savvy investors can make a pretty penny—no pun intended—if they know what is going on.
The penny stock market has certain rules. When approaching your first penny stock deal, a red flag should go up if the following conventions are not observed: before brokers, or more commonly dealers, can sell a stock, it must approve the customer (you) and get from you a written statement consenting to the transaction in question. They are then required to provide you with concrete documentation that notifies you of the risks associated with trading in penny stocks, after which they must outline the details of the trade.
This includes the market value of each share, the company will gain from the transaction, which is ready to share any broker involved, and so on. Once your account is created, the company is obliged to show the exact market value of each share in your account by sending you monthly statements. If all these measures are in order and the trade goes well, you are free to proceed with confidence.
Penny stocks are those that have great potential to earn a great return on investment with so little comment. This makes it the favorite of all time stock traders, including those who are new to the stock exchange games. It is not surprising even veteran stock traders find the time to invest in penny stocks returns. But not all penny stocks can lead to huge returns on investment, if any at all. In fact, many penny stocks on the market are placed there simply as fraudulent stocks, traders deceive gullible to believe he has done a good deal, when in fact it is buying a bouquet of value stocks.
Contrary to public opinion, to learn how to select penny stocks is not exactly a difficult thing. In fact, it is quite simple that novices easily blow it. The first thing you should probably see a penny stock site. You will find hundreds of resources for choosing penny stocks just by searching the Internet.
The problem is that most of these Web resources require membership; some require a certain amount of the contribution. Fortunately, the taxes that are required are usually minimal, and that the value you can get information, there will certainly exceed what you paid for membership. But you must always be careful when seeking advice penny stock. Just because you find all sorts of information on the Internet does not necessarily mean that all this is true. There are fake sites that are created specifically to draw attention to some penny stocks that are currently on offer, in truth and in fact, nothing.
For this reason, you should also consult a veteran in the stock market. He must know the advantages and disadvantages of penny stock trading and should be able to give advice on the experience and practical knowledge.
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Pankaj Gupta Author of whisperfromwallstreet.com consultant of Penny Stock Broker, Penny Stock Tips, Penny Stock, Penny Stocks, Buy Penny Stock, Buy Penny Stocks and Penny Stock Market.
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can’t believe it’s drawn out of nothing, could be a photography!
Example of penny stock trading:
You buy a stock selling at 1.00 per share.
Say you bought 10,000 shares at 1.00.
10,000 x 1.00 = $10,000
The following day it goes up by .50 points to 1.50.
10,000 x 1.50 = $15,000
You just made $5,000.
RESEARCH on any good search engine – even my stockbroker uses Yahoo! Finance resources, for instance – for investments by product. Look for the teases in free online stock newsletters, than research, research. You can tell the market by the appendages. PK as a suffix, for instance, means Pink Sheets and is licensed out of Libya. There are few controls, but maverick companies, or subdivisions of more respectable companies will do business there. OB as a suffix means over the counter and can include some stocks under a dollar but there is no ceiling, which is good.
whoa!!it looks like a PICTURE!
ur an amazing painter!:D
Trading penny stocks require a lot of experience and secondly you should not consider it as an "investment" due to high risks involved.
This book is the best source for all you need:
The Little Black Book of Microcap Investing
Some websites that can guide:
http://www.fool.com
http://www.otcbb.com (more regulated and secure)
http://www.pinksheets.com (trade at your own risk!)
http://www.globalmarketplay.com (for known and secure penny stocks)
The problem with penny stocks relates to average daily volumes (in dollars) and thin markets. A single buyer or seller can often have a huge impact on a penny stock, so short term it is like gambling. Long term, there are SOME penny stocks that will be future S&P 500 companies, but not many. Though you did not ask, you may want to look at Thorium Power (THPW), my favorite penny stock.
Brilliant Willy, Just Brilliant =D
Excellent work. Pleasure to watch. Perfect music
))
If you're a rookie in investing or stocks, go to
http://www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You'll see what I mean by losing money every easily.
Good luck.
Great talent Der Mann.
I checked the current quote and it is trading at $0.42 (NTWK, NSDQ). Penny stocks are inherently risky because large percentage gains are produced by a price change of only a few cents. For example, another 50% drop in NetSol would only require a drop of $0.21, a change many large companies can make in minutes.
The market capitalization of NetSol is only 11 million, meaning the total outstanding value of shares (total shares * current prices) is very small compared to other companies. Its average volume is also only 111,000, meaning that's the average number of shares that exchange hands during a trading day. With such a low volume, trades do not happen very often. Thus, when they do, the price tends to jump more than it normally would on a larger, more well known stock. And, going back to the beginning of my answer, this larger jump in price creates an even larger percentage jump.
If you are new to the stock market I would suggest investing in large corporations that you know, or in mutual funds that spread their investments over a wide range of stocks, lowering the risk.
Penny Stocks are a great idea after you've been actively trading (that's trading… not investing) for 5 – 10 years. Even with that level of experiance, don't do over 2% of all your assets (split amoung many penny stocks).
Newbe's tend to be attracted to penny stocks. It's the very last place to be (actually the next to last place to be. Forex, Options and Futurers are worse).
Learn investing not gambling…. READ READ READ
For now, find a bank CD with a good yield. Park the money there while you learn more about how different investments and investment strategies work.
Some recommended reading:
-Wall Street Journal Guide to Understanding Money and Investing (the basics)
-The Neatest Little Guide to Stock Market Investing (a good introduction to investing strategies and value investing)
-Webster's New World Finance and Investment Dictionary (you don't have to read it, it just comes in handy when you come across a term you don't recognize)
-Technical Analysis for Dummies (technical analysis always helps to determine if your investment is going bad)
Also, some other things you need to learn about are:
- taxes (and wash sales; I didn't know about wash sales until one of my mentors told me about them)
- different brokers and broker's fees (some charge you if you do nothing!)
- bankruptcies (a lot of people have lost money buying shares of bankrupt companies)
- market terms and lingo (it can be confusing at first)
As for penny stocks, ugh, no thanks; that's the best way to get caught in a "pump and dump" scam. I think alternative energy is the next bubble, and bubbles always pop, so it's good if you can figure when to get in and out; it's bad if you can't. Oil is currently a speculator's game; be aware or beware. Hedge funds are generally for investors with a lot of money to invest (think "millions") Robotics might be something. But don't ever fall in love with a stock; it doesn't understand what love is, and it won't love you back. Recognize stocks only for what they are: a way to make money.
I know you don't want to hear "Wait and learn more" because I didn't want to hear it when I started out. But, the first year I got into the market, I lost $10k.
Good luck!
Incredible! He looks so life like. Just amazing…and what a beautiful subject
You’re really good man. You’ve got excellent talent.
Hi,
Before you invest in Penny Stocks, make sure you know of the risks associated with it. They can potentially make you good returns, but there are also a lot of risks involved in trading in Penny Stocks due to the looser control on the policies associated to Penny Stocks.
Here are some articles you should read up on – http://invest-money-stocks.com/category/investment-instruments/penny-stocks
Also, if you really need help with picking out Penny Stocks, Motley Fool may be a good place to start. But make sure you read up on Penny Stocks first!
Nice work, you did pretty good.