Penny Stocks for Beginners

PENNY STOCKS for BEGINNERS LEARN the BASICS CHARACTERSTICS OF PENNY STOCKS R0000 Common shares of small public companies that trade at low prices per <5$ share. Any security that trades below $5 per share. May not be listed on a national exchange and fail to meet other specific criteria. OTC PINK SHEETS Traded over-the-counter on the OTC Highly volatile. and Bulletin Board. And some penny stocks require meticulous do trade on major exchanges. strategy but can be extremely profitable if played right. Subject to manipulation by stock promoters and pump and dump schemes. High risk for investors. BOUGHT FOR = due to lack of Penny stocks are of ten "thinly Information available to traded". SOLD FOR = make informed decisions. RISK OF INVESTING IN PENNY STOCKS WITH THE GROWTH OF WEB TRADING AND EXCHANGE OF INFORMATION. THERE IS A RISING RISK OF STOCK PROMOTERS AND MANIPULATORS. AND THEREFORE, PENNY STOCKS ARE VULNERABLE TO THE "PUMP AND DUMP SCHEMES". 2. Manipulators first Then artifically drive up the demand through purchase large misleading and false claims of inside information amounts of stock. through newsletter websites. chat rooms, stock message boards. press releases. or e-mail blasts. 3. レ 2$ This hype inflates the stock price. This rise in price entices more people to believe the hype and to buy shares as well. Once sales have been driven up. manipulators sell off their own shares at the inflated price and leave. LAW & REGULATION OF PENNY STOCKS Regulations are now primarily enforced by SECURITIES AND EXCHANGE COMMISSION FINRA The State of Georgia was the first to instate a thorough penny stock securities law. FINRA and the SEC then revised and enhanced their penny stock regulations based on Georgia's action. PICKING HOT PENNY STOCKS TODAY = INTRINSIC VALUE IS KEY PICKING PENNY STOCKS ON THE RISE IS TOMORROW = ABOUT SPOTTING INTRINSIC VALUE: INVEST IN AREAS WHERE YOU KNOW THE MARKET AND CAN SPOT A QUALITY PRODUCT OR SERVICE, VOLATILITY When a company has an excellent Companies repairing their business Because of their volatility, there is product or service but hasn't been and working back up to being listed legitimate opportunity for gains exposed to the public their stock on a national exchange may be with the right stocks. may be undervalued. available at significant discount. Shorting penny stocks is not the Using caution, new investors can The keys to success in the stock only way to make money from use penny stocks as an inexpensive market are not just "great picks" them. (per share) opportunity to try their and "having a lot of money to make hand in the market. more money". TOP 3 RULES FOR PENNY STOCK STRATEGY GET OUT OF TRADES WHEN THEY DONT GO YOUR WAY, EVEN WITH GAINS. 1. This includes taking a smaller profit when the stock doesn't behave exactly as expected within a short time of the trade. Small gains won't make you rich, but they will protect you from the downside risk of big losses on such trades. SHORTING INFLATED PENNY STOCKS IS LOGICAL. 2. Nowhere else in the stock market can you make such predictable 30-70% profits in a day. Learning to identify the right stocks to short can make a career in the stock market. CUT LOSSES QUICKLY. 3. Difficult to abide by due to ego. Investors must be willing to admit a wrong decision. FIM TIMOTHYSYKES.COM SOURCES: http://www.investopedia.com/terms/p/pennystock.asp http://www.nasdaq.com/investing/lowdown-on-penny-stocks.stm http://en.wikipedia.org/wiki/Penny_stock http://trendshare.org/how-to-invest/should-you-buy-penny-stocks %24 %24 %24