An Introduction to Trading Penny stocks
There is no official and concrete definition for penny stocks but several claim that any stock under $2 or under $ and some claim it below one dollar are penny stocks .Sub-penny stocks are under a penny or between (.001-.01)and super sub stocks are.0001-.0009 of a penny. Penny stocks trade on OTC Bulletin, over the counter and pink sheets markets in the US.
The NASDAQ and AMEX are in top with reporting requirements that helps investors to get access to firms and their financial files. Pink Sheets are riskier as there are no reporting information about the super subs. But the Super subs give the best buck even thought they are equally riskier. Investing with pink sheets are pure speculation so with short term penny stock trading, it’s all about buying and selling at the right time that would make money.
Penny stocks can make an investor wealthy in 1 to 3 years because the price is so low that an investor can buy billions of shares at the cheapest price of .0001. So, if the price rises to one penny the investor would make made hundred times more money but at the same investor can also lose the same amount of money.
The penny stocks can be traded from home or anywhere that has an internet connection. All you need an online broker and some money to start out with.
It is best to start trading in penny stocks with a small amount till one gains some experience.
Penny stocks have a great potential of making millions, it is an easy way to generate a large amount of money. Online marketing business known as Wealthy Marketer create trading capital with $900 per sale. They also create unlimited income streams, in trading penny stocks as it has the much needed liquidity and is an automated online system which completes 98% of the work.
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