==== ==== Thankfully, Nathan Gold, The Penny Stock Egghead, has happier news for investors. http://tinyurl.com/85tusbl ==== ====
"What are penny stocks?" That's a question that I hear a lot from people who are curious about this type of stock trading. The answer may vary according to who you ask, but it's basically any stock that sells for less than $5.00. Some may say that it has to sell for less than $1.00 to be considered a penny stock, but like I said, that all depends on who you ask. No matter what monetary limit you use to define penny stocks, they are usually offered by newer companies. This makes the financial information on these stocks quite limited, and the company may have restricted liquidity so a financial report may not be available to prospective investors. There are also some risks involved with penny stocks. They are often inactive and small compared to other stocks in the market. The movement of penny stocks lack predictability and stability, they can swing in price by as much as 50% in one trading day, which of course makes them very attractive. Most individuals who invest in penny stocks are considered day traders, this means that they buy a penny stock one day and then sell it once it surpasses a certain value. This is sometimes achieved in as little as one day, hence the term 'day trader'. There are also penny stock investors who hold onto their stock for longer periods of time, some for more than a year. These investors are typically interested in long term gains and have implemented a long term investment strategy. There's also the question of where you can buy penny stocks. There are stock brokers that you can use or you can use on online broker and purchase them online. Many people have been taking advantage of the online brokers and are reaping the rewards. No matter what monetary value you assign to penny stock and what type of investor you want to be, or even where you decide to purchase them, if you're willing to take the risks to trade penny stocks then you have the potential to make a lot of money with a minimal investment.
I have found the most reliable program for picking and investing in penny stocks. There is detailed information at my website and the program guarantees you will make money and even gives you $50 to get started. Super cool. I knew nothing about trading stock when I first started but actually doubled my money on my first trade. go to http://www.MylaMadson.com/pennystocks for more info.
Article Source: http://EzineArticles.com/?expert=Myla_Madson
==== ==== Thankfully, Nathan Gold, The Penny Stock Egghead, has happier news for investors. http://tinyurl.com/85tusbl ==== ====