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Penny Stock Market

Decent Essays

Penny stocks are the right way to enter the stock market
By Jessica Meriya
Dec 5, 2011
Penny stocks are less investment opportunity.

Most stocks trading at below $5.00 are treated as penny stocks. But sometimes this is not the case as most commonly heard of cheap penny stocks are well under .50 cents or even sub penny prices. Penny stocks can be determined by the lower the trading price of the security is the closer chance it is of being a penny stock. Cheap penny stocks are traded on the over the counter bulletin board, or Pink Sheet market. A Market cap is the value of each stock multiplied by the number of stocks which are owned by the public. This gives the trading value of the entire company. If this number is low, then it is likely to …show more content…

The volatility involved in penny Stocks are what makes them so rewarding. Best penny stocks online is their potential to garner incredible gains with a minimal investment and in a shorter time. The extent of the rewards is simply a matter of choosing the proper stock at the proper time. Those who are new to trading, it is an excellent way to learn about stock market fundamentals with minimal commitment through penny stocks.

It is not uncommon to see a stock soar high within purchasing price very quickly within hours of purchase, and as such many is drawn to the penny stock community. They key to success lies in choosing the right stock before it takes off. It is always advised to take the profit when in a position to do so and not to get greedy which may lead to loss. It is better to do proper research and investigation of your own before you indulge in it. Penny stock are risky investment because of the volatility, hence it is advised to invest only what you can afford. It is better to limit your purchase to protect your investments. You have to be shrewd and do not hold your stock when everybody else are running to quit. Penny stocks can loose within a short time span. You have to remember the key to success in stock trading that is buy when it is low and sell when it is

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