By: Rick aurtus
Everything you have been told or read about penny stocks is a lie. Read on to find out the secret. Finding the correct way to trade these stocks is very easy…
When you know how of course.
For instance, people will get some IPO advice from a cheap broker to invest in a certain penny stock, or better yet someone they ‘trust’ then they research the stock by Googling the company to find out about the companies financials. Yes, trading penny stocks can be that easy to trade and I have made a small fortune trading them, even in this economic climate. The secret is you can make money on these stocks no matter the economy at the moment.
New Opportunities to invest in stocks come up all the time. Of course the information is very time sensitive.
I normally hold a stock for the medium term. So what is the right advice and what is the wrong advice? The truth is that it comes down to how reputable the company is that is giving you your advice on what stocks to trade.
Always do your own research and invest with common sense, even after you receive the correct advice from the right company. This company has earned me a small fortune.
I had the flash broker, who would give me advice on certain stocks, and that advice would normally mean nothing! I want to simplify the whole process when it comes to investing in stocks. I know for a fact that investing in stocks has paid huge dividends for me and other. First, know what you are investing into, I have seen people place trades because they were told they should, from some guy who had no history of profitable trades to do so! I personally have made a small fortune from trading penny stocks, and that would be my recommendation.
Why You Should Invest In Penny Stocks
By: Jim Pretin
Most people consider penny stocks to be a poor investment. I, on the other hand, think that investing in a penny stock before that company becomes profitable company is the best way to invest, because you can make a lot more money with penny stocks than would ever be possible with blue-chip stocks. Penny stocks are defined differently depending on who you talk to. Stockbrokers define them as any stock that trades below $5 per share. The Pink Sheets are an exchange where most startup companies first get listed. The reason why a company tries to get listed on the Pink Sheets, even though their stock will not go up in price because they have no sales to speak of, is because it gives their company more substance and credibility; it is typically easier to attract additional capital, obtain financing, and execute contracts and agreements if a company is publicly traded, even if it is on the Pink Sheets.
Companies listed on the Pink Sheets trade as ridiculously low as $0.00001 per share, all the way up to $500 per share and sometimes beyond. Foreign companies often have some of their shares sold in the United States by listing them on the Pink Sheets.
The OTC (Over-The-Counter) Bulletin Board is similar to the Pink Sheets. This exchange consists of relatively young companies either with no sales or a small amount of sales. Often, companies go from the Pink Sheets to the Bulletin Board once they are ready to become fully or semi-reporting.
Most publicly traded companies that are now listed on one of the major exchanges (NASADAQ, AMEX, NYSE), at one time or another, were penny stocks listed on the Pink Sheets or Bulletin Board. Rarely does a company go from being private directly to one of the 3 major exchanges. The hard part is finding the right company to invest in, because for every successful startup company, there is also one that fails within the first year or two.
Companies listed on the Pink Sheets usually do not officially report this number to the public, but with a little research, you can usually find out. It is usually contained in articles written about the company, or in TV or radio interviews with company officials that are sometimes archived on certain websites.
Companies with this kind of share count are likely having problems moving forward, so they have issued more and more shares to raise money just to stay alive. You want to look for companies that have approximately 5 to 100 million shares in their float.
Here are the questions you need to ask yourself when analyzing the probability that a company will be successful:
Everything you have been told or read about penny stocks is a lie. Read on to find out the secret. Finding the correct way to trade these stocks is very easy…
When you know how of course.
For instance, people will get some IPO advice from a cheap broker to invest in a certain penny stock, or better yet someone they ‘trust’ then they research the stock by Googling the company to find out about the companies financials. Yes, trading penny stocks can be that easy to trade and I have made a small fortune trading them, even in this economic climate. The secret is you can make money on these stocks no matter the economy at the moment.
New Opportunities to invest in stocks come up all the time. Of course the information is very time sensitive.
I normally hold a stock for the medium term. So what is the right advice and what is the wrong advice? The truth is that it comes down to how reputable the company is that is giving you your advice on what stocks to trade.
Always do your own research and invest with common sense, even after you receive the correct advice from the right company. This company has earned me a small fortune.
I had the flash broker, who would give me advice on certain stocks, and that advice would normally mean nothing! I want to simplify the whole process when it comes to investing in stocks. I know for a fact that investing in stocks has paid huge dividends for me and other. First, know what you are investing into, I have seen people place trades because they were told they should, from some guy who had no history of profitable trades to do so! I personally have made a small fortune from trading penny stocks, and that would be my recommendation.
Why You Should Invest In Penny Stocks
By: Jim Pretin
Most people consider penny stocks to be a poor investment. I, on the other hand, think that investing in a penny stock before that company becomes profitable company is the best way to invest, because you can make a lot more money with penny stocks than would ever be possible with blue-chip stocks. Penny stocks are defined differently depending on who you talk to. Stockbrokers define them as any stock that trades below $5 per share. The Pink Sheets are an exchange where most startup companies first get listed. The reason why a company tries to get listed on the Pink Sheets, even though their stock will not go up in price because they have no sales to speak of, is because it gives their company more substance and credibility; it is typically easier to attract additional capital, obtain financing, and execute contracts and agreements if a company is publicly traded, even if it is on the Pink Sheets.
Companies listed on the Pink Sheets trade as ridiculously low as $0.00001 per share, all the way up to $500 per share and sometimes beyond. Foreign companies often have some of their shares sold in the United States by listing them on the Pink Sheets.
The OTC (Over-The-Counter) Bulletin Board is similar to the Pink Sheets. This exchange consists of relatively young companies either with no sales or a small amount of sales. Often, companies go from the Pink Sheets to the Bulletin Board once they are ready to become fully or semi-reporting.
Most publicly traded companies that are now listed on one of the major exchanges (NASADAQ, AMEX, NYSE), at one time or another, were penny stocks listed on the Pink Sheets or Bulletin Board. Rarely does a company go from being private directly to one of the 3 major exchanges. The hard part is finding the right company to invest in, because for every successful startup company, there is also one that fails within the first year or two.
Companies listed on the Pink Sheets usually do not officially report this number to the public, but with a little research, you can usually find out. It is usually contained in articles written about the company, or in TV or radio interviews with company officials that are sometimes archived on certain websites.
Companies with this kind of share count are likely having problems moving forward, so they have issued more and more shares to raise money just to stay alive. You want to look for companies that have approximately 5 to 100 million shares in their float.
Here are the questions you need to ask yourself when analyzing the probability that a company will be successful:
- Barriers to Entry: Are there are obstacles that will make it difficult for the company to sell its products or services?
- Patents: Is the product that the company is going to sell patented? A patent will prevent other companies from producing the exact same product.
- Consumer Demand: Will there be a demand for what the company is selling? Try to set aside some money for investing in penny stocks and start while you are still young.
Read More About Basics of Stock Market Investing
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