Penny Stocks Are Awesome

Posted by jeffer121 on October 13th, 2014

Penny stocks, also called as micro-cap trading, are stocks that trade under $5.00 on the OTCBB or Pinksheets, outside the major trading networks. These stocks are greatly speculative, giving market participants a chance for huge profits and huge losses. These stocks are subjected to less reporting and disclosure, so recognizing legitimate penny stocks can be daunting but as a trader we do not care about this. In terms of finding awesome penny stocks, you should not follow the same process for finding higher priced stocks.

First, engage in a little technical analysis. Don't analysis the firm's business model, liquidity and financial stability since penny stocks are general crappy companies with no fundamentals. While no one can predict the marketplace, you can identify a few market trends and the potential for development. Electronic trading, technology, and back end platforms are very important and will become more important as time goes one. You can discuss with other penny stock traders and find how do penny stocks work but in general you need to learn to make trading decisions by yourself and not rely on others. Several stock trading websites give access to a few of their most aggressive and successful investor's portfolio, but I would ignore these altogether.

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jeffer121

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jeffer121
Joined: June 4th, 2014
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