Penny Stocks Trading - Why It Works And How Someone Can Make Profit 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.
Why are these low priced stocks so popular with traders. It is due to their low price and the small amount of capital required to enter into a trade. The possibility for high percentage gains are greater. If you buy a stock for $100 and it goes up $2.00, you have a 2% gain. If you buy a stock for $2.00 and it goes up only $1.00, you have a 50% gain.
You can find hundreds of websites and experts offering penny stock picks for a fee. There are some who will send you free picks. You can also find a local trader or possibly a friend who trades these cheaper stocks to help you learn ways to trade. If you decide to subscribe to a service, see if you can get a free trial first as this allow you to see the picks in action and to see if they are any good!
Before you decide to purchase a subscription to receive someone's stock picks, make sure to do your research. Research their prior performance as this may give you some insight into how well they do. Everyone has heard that you need to buy low and sell high to make money. With cheap stocks, you need to buy before it goes up and sell before it goes down.
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! - 23159
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.
Why are these low priced stocks so popular with traders. It is due to their low price and the small amount of capital required to enter into a trade. The possibility for high percentage gains are greater. If you buy a stock for $100 and it goes up $2.00, you have a 2% gain. If you buy a stock for $2.00 and it goes up only $1.00, you have a 50% gain.
You can find hundreds of websites and experts offering penny stock picks for a fee. There are some who will send you free picks. You can also find a local trader or possibly a friend who trades these cheaper stocks to help you learn ways to trade. If you decide to subscribe to a service, see if you can get a free trial first as this allow you to see the picks in action and to see if they are any good!
Before you decide to purchase a subscription to receive someone's stock picks, make sure to do your research. Research their prior performance as this may give you some insight into how well they do. Everyone has heard that you need to buy low and sell high to make money. With cheap stocks, you need to buy before it goes up and sell before it goes down.
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! - 23159
About the Author:
Everyone has a friend who has made 100% or 1000% on Day Stock Trading. Many of those stories involved penny stocks trading. If you are an investor you most certainly receive e-mail from gurus trying to sell you their penny stock picks or their system.
posted by X - Men @ 7:42 AM
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