Penny stocks, also known as micro-cap stocks, are not traded on the floor of a traditional exchange, such as the New York Stock Exchange or the NASDQ, although the NASDQ does have a small cap market. Penny stocks are usually traded on the Over The Counter Bulletin Board (OTC-BB), The American Stock Exchange (AMEX) and on what investors call “Pink Sheets”. All these trading options have different listing, filing, and regulatory requirements, so investors should take these options into consideration before purchasing penny or microcap stocks. Here are some quick penny stocks tips for making a profit: |
• Since penny stocks trade at a much lower share price (generally under $5.00 a share), most penny stock investors choose to forego a traditional stockbroker when buying and selling these stocks. By researching, purchasing, and executing trades themselves, penny stock investors save themselves hefty brokerage and trade fees. When you dealing with low prices and high volumes, the costs and fees associated with broker assisted trading can really add up. • The value of penny stocks can increase quickly, gaining hundreds of percents in a trading session. You need to move quickly when buying and selling penny stocks, since the stock’s value will react to any industry and market news. • Once an investor decides to start investing in penny stocks, the first thing he or she should do is research some of the on-line brokerage firms. There are a number of online firms which cater to penny stock investors. Take a look at the price of the trades, and any associated fees. These firms also have varying requirements when it comes to maintaining a minimum balance, trade activity, and quarterly or annual maintenance fees, and these fees can have an impact on your bottom line and investment strategy. • You must move quickly once you have decided on a stock you want to invest. Get a real time quote on the stock and then enter the stocks trading symbol and execute the trade . Many analysts recommend getting in as the market opens, in order to secure the best price. • Penny stocks move quickly, and you will have a good idea how your stock will do within the first fifteen minutes. If you see a lot of movement, but the price isn’t increasing, get out and cut your losses. • Since the penny stock market can be highly volatile, you can set up a number of safeguards for your online trade to help stop some of your losses if your stock begins to lose value. A stop order, stop limit order, and a trailing stop order can all limit your exposure to big losses when investing in penny stocks on line. • Investing in penny stocks online is the easiest way to take advantage of the high risk/high rewards these trades can bring. Be sure you have a plan for buying and selling, and stick to it so get the most profit from your online trades.
These quick penny stock tips can help you manage your investment, lessen your risk, and increase your rewards.
Are you looking for more information regarding quick penny stock picks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
Related Articles -
quick, penny, stock, picks,