Penny Stocks Trading - How It Works And Why You Can Make Big Money With It
Most of us know someone who has told us about that big stock winner. Many of these tales involve penny stocks. Penny stocks trading is ubiquitous on the Internet today. Gurus, website and even a stock picking robot claim to know the secrets to trading low priced stocks.
Before following anyone's advice, especially the advice of a robot, you should do your own due diligence on penny stocks and trading. What are penny stocks? Some definitions consider them to be stocks that trade for less than $5.00 per share. Sometimes they are defined as stocks trading for under $3.00 per share, or under $1.00 per share. Basically they are very low priced stocks.
It is no secret why cheap stocks are so popular with the average trader. Due to their low cost, you can start trading with a small amount of capital. High percentage gains are a distinct possibility with these stocks. If you purchase a stock for $2.00 and it goes up $1.00, you will have a 1& gain. However, it you purchase a stock for $2.00 and get a $1.00 bump in price, you have a 50% gain. Not bad!
There are many sites on the Internet that offer low priced stock picks for monthly, quarterly or yearly fees. There are even some who will send you picks for free. Finding a mentor who has traded low priced stocks can be beneficial. You can search the Internet for websites that offer picks. See if you can get a trial offer free so you can check out their performance.
Penny stocks can be rewarding and lucrative, but it also takes effort. You cannot expect to buy a stock and then check back in a few months to see how much you made. After you purchase some shares, you need to monitor them closely. These low priced stocks often have quick spikes in price which is how you make your money. If you are not watching, you may miss that quick rise in price.
Most online brokers permit low priced stocks to be traded. However, watch out for extra fees on low prices shares. Some brokers do not like to deal with these cheap stocks and they may charge you for trading over 1000 shares or 10,000 shares. With low priced stocks, you will often trade large lots and these fees can subtract from your profits.
Penny stocks trading is a great way to make some money in the stock market. They are lucrative because they require smaller amounts of capital to make healthy profits. This allows the average investor to play the market with the big boys! - 23199
Before following anyone's advice, especially the advice of a robot, you should do your own due diligence on penny stocks and trading. What are penny stocks? Some definitions consider them to be stocks that trade for less than $5.00 per share. Sometimes they are defined as stocks trading for under $3.00 per share, or under $1.00 per share. Basically they are very low priced stocks.
It is no secret why cheap stocks are so popular with the average trader. Due to their low cost, you can start trading with a small amount of capital. High percentage gains are a distinct possibility with these stocks. If you purchase a stock for $2.00 and it goes up $1.00, you will have a 1& gain. However, it you purchase a stock for $2.00 and get a $1.00 bump in price, you have a 50% gain. Not bad!
There are many sites on the Internet that offer low priced stock picks for monthly, quarterly or yearly fees. There are even some who will send you picks for free. Finding a mentor who has traded low priced stocks can be beneficial. You can search the Internet for websites that offer picks. See if you can get a trial offer free so you can check out their performance.
Penny stocks can be rewarding and lucrative, but it also takes effort. You cannot expect to buy a stock and then check back in a few months to see how much you made. After you purchase some shares, you need to monitor them closely. These low priced stocks often have quick spikes in price which is how you make your money. If you are not watching, you may miss that quick rise in price.
Most online brokers permit low priced stocks to be traded. However, watch out for extra fees on low prices shares. Some brokers do not like to deal with these cheap stocks and they may charge you for trading over 1000 shares or 10,000 shares. With low priced stocks, you will often trade large lots and these fees can subtract from your profits.
Penny stocks trading is a great way to make some money in the stock market. They are lucrative because they require smaller amounts of capital to make healthy profits. This allows the average investor to play the market with the big boys! - 23199
About the Author:
Everyone has a friend who has made 100% or 1000% on Day Stock Trading. Many of those successes involve penny stocks trading. If you are an investor you most probably receive e-mail from gurus trying to sell you their penny stock picks or their system.
posted by X - Men @ 4:52 AM
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