Penny Stocks for Dummies - Penny Stock Trading Explained

Penny Stocks for Dummies Overview:

Penny Stocks for Dummies Overview:

The Penny Stock over the counter market consists of a number a very cheap stocks that are traded for less than five dollars. Trading these stocks can be quite difficult because of the challenges due to volatility. Many of these markets are very thin, and for this reason that penny stock can shoot up or shoot down depending on very little news or information. In fact, one could say that the Penny Stock market makes fortunes and cost origin day in and day out. If you are a high volatility person and can sustain this sort of risks needed to trade a volatile market, the Penny Stock market may be just the place for you. Many people have made absolute fortunes in this market, and it continues to be one of the last frontiers in the financial world where the every day guy or girl can actually get involved in the game without a computer based program that feeds off of high trade frequency algorithm as is seen in the current New York stock exchange.

Visit the Official Penny Stock Prophet's Site Today!

Of course, where there is risk, there is room for opportunity. The Penny Stock market offers you just that sort of opportunity, but be sure that that risk is very severe and that all of your trade initiations must be made with the utmost care. You will need to create a strong market understanding entries and exits so that you monitor your risk and maximize your ward. The need to let winners run and cut losers fast. And on top of that you don't want to look for young companies with strong fundamentals and potential for huge upside. We saw with Hansen over the last decade that if a company is caught early, many times traders will be able to enjoy what they call, in the industry, a 10bagger. A 10bagger is basically a stock that goes up 10,000 times its value. Of course, if you buy Microsoft at $32 a share, the possibility of going up 10,000 times its value is impossible in any single lifetime.

But in the Penny Stock market, where many stocks trade at two or three cents, saying the stock shoot from three cents a three dollars is something that's witnessed just about every single trading day of the year. On top of solidifying a legitimate trading strategy, you're going to need to do the necessary research on these companies. Don't let any penny stock leaflet be the be-all and all for your decisions. You get to do a legitimate investigation of these companies via the Internet. Edgar is a website run by the SEC that keeps you all types of information on these companies, and will allow you to see which ones are undervalued based on the likelihood of continued success. But just to get a jump on what you want, you're going to want to stay in touch with some of the finer students of the game. Below is a link to my favorite of the penny stock suggestions out there. Spend some time aside and make the decision for yourself. Are you going to simply start from scratch Google penny stock, or are you going to use little assistance to narrow down your search and focus on a few strong companies with some true potential? Best of luck to you in your trading.

Visit the Official Penny Stock Prophet's Site Today!

Penny Stocks for Dummies - Penny Stock Trading Explained

By: Glen

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