Penny stocks are an affordable way for many to enter the stock market and learn about online stock trading since, as their name implies, they are exceedingly cheap to purchase and extremely volatile. Indeed, for those with little capital to invest, penny stocks may constitute an important opening into the stock trading world.
The problem with penny stocks, really, is the high volatility of the market, so you have to remain vigilant to succeed in penny stock trading or receive good guidance. So, where can you find most volatile penny stocks?
Here are a few platforms where you can find most volatile penny stocks:
- TD Ameritrade
- Scottrade (Scottrade clients have moved to TD Ameritrade)
- Charles Schwab
- Ally Invest’s
- Merrill Edge
Video on E-trade How To Buy Penny Stocks:
Building a stable and successful investing portfolio mostly depends on the brokerage account you decide to begin with. The right stock brokerage platform can serve as your guide in learning the ups and downs in your stock trading.
Whenever you want to buy volatile penny stocks, you have to remember the basic rule in trading: sell when it is hot and buy when it is not. So buy penny stocks when their prices are low. Additionally, buy penny stocks when all indications point to a rise in value in the near future.
Indeed, it is that simple. You just have to keep these things in mind whenever you want to trade penny stocks. Better yet, you could assign a broker to buy penny stocks on your behalf. This would make things easier for you when venturing out in making money when penny stocks.
High Risk Penny Stocks Are Most Volatile Stocks
Penny stocks are the most volatile stocks meaning that they can have high volume one day and the next day little volume, also penny stocks are a target for the pump and dump scheme.
Also, microcap stocks have the reputation of being very risky investments from other stocks. One of the primary reasons is because penny stock companies are often quite small in size and new in business, which means there is frequently little public information about the company available to help you make a decision about whether they are a good investment or not.
Does this mean that beginning investors should steer clear of most volatile stocks altogether? Probably not, as there are those who trade these affordable stocks quite successfully. But it does mean that the beginning penny stock investor should certainly follow a careful and successful penny stock investment strategy.
How To Pick The Right Volatile Penny Stocks
It is a gamble, you see, whenever you deal with penny stocks. But it doesn’t have to be a pure game of luck. Intelligent speculation is the key, and the information you are reading will give you some guidance whenever you’re planning to buy volatile penny stocks.
You can magnify your gains on betting on futures through futures trading stocks. You have to do your homework though.
Research the particular market where the stocks you are spotting do operate. Try to be on the lookout for the following factors before deciding to buy penny stocks:
- How fragile is the market? If it is a pretty stable industry, chances of a spike in value would be less.
- Who are the people behind the industry? The strength of a business lies in the people running it, just as much as other economic factors. Try to study the portfolio of the managing team behind the company before you buy penny stocks attached to its name.
- What has been the trading history of the penny stocks involved? Lessons can be learned by studying the trends posted by the said stocks.
- How favorable is the immediate future for the said market?
Research is an investor’s best weapon when it comes to making the most of penny stocks information. Additionally, regardless of what types of stocks or how many stocks a person purchases, no one should ever invest more than they can afford to lose.
Developing a competent and successful strategy when it comes to penny stock trading takes experience or trial and errors in trading penny stocks and that most likely discourages most beginners in penny stock trading.
What do you need to start trading penny stocks? Let’s watch the video below for the answer:
Learn How You Can Make Millions With The Most Volatile Stocks… Click Here.
Finding High Risk High Reward Stocks In Forums
One excellent way to get information and even reputable opinions from experienced individuals is to make use of penny stock forums. Using forums, investors can share information and knowledge which can help them to avoid the common mistakes that many inexperienced investors make with high risk stocks.
Surrounding yourself with experienced investors is a great way for a person to minimize their risk while maximizing your chance for seeing returns on their investments. There are a number of different penny stock forums that a person can choose from. For many individuals, choosing the right forum boils down to a matter of personal preference.
The most important thing to keep in mind when looking at the different forums is whether or not the individuals that participate have the experience necessary to provide useful information.
Although it might be entertaining for individuals that do not have a lot of experience with this type of investing in talking to other people in similar situations, finding good advice is crucial. Many penny stock forums allow individuals to browse around the site before registering.
There are those, however, that require a person to register before they can access any of the information on the site. Once a person has chosen a forum that they like, it will almost always be necessary to register before it is possible to participate in any of the penny stock trading discussions.
Etiquette On Penny Stock Forums
A person concerned about their security while on the forum may want to consider opening a secondary email account that they used solely for registration. This is also an excellent way to avoid spam and unwanted correspondence.
Another thing to keep in mind when participating in one of the penny stock forums is that almost every discussion group has a set of rules that individuals must abide by or risk banishment. These rules help to keep the conversation civil and productive.
People that post offensive content or pornographic material are often banned. It is also crucial that a person verify any information that they receive in a discussion forum before making a decision based on it. Even if an individual seems to have the knowledge and experience necessary to provide good advice, it is always a smart move to double check any information.
Most penny stocks or microcap stocks are offered by companies that are just starting out and looking for capital, therefore many experts feel that there is an elevated amount of risk associated with them. But it’s important in knowing when and which stocks to invest in and just as important is to know when to sell.
Having a good plan and background information before you start trading will make it worth while in your stock investments.
- People who trade penny stocks deal with a highly volatile market. Diligence is required because the value of micro cap stocks rise and fall in a matter of minutes. Miss that minute of glory, and chances are, your shot at gold would be lost forever.
- The word “penny stocks” is a misleading term. Each share may come at a low price, but you would usually trade penny stocks by the thousands. This means that you stand to lose more if your investment suddenly falters.
- Most volatile stocks are sometimes issued by less than reputable companies. There are even occasions when dummy corporations issue penny stocks so that they could earn fast from the Initial Public Offerings (IPOs) and thereafter disappear from public sight.
- The value of penny stocks is driven by hype. A few press releases here and there, a mention in a generally circulated newspaper, a full page ad in a leading magazine, and the value of the stocks would increase. But as with everything that is driven by hype, whenever we trade penny stocks, we would have to deal with the consequences that would result once the hype dies down. Will the stocks be able to stand on their own? Or will they sink so deep without the support of a marketing push?
- Those who trade in high volatility penny stocks would also have to deal with this industry’s failure to make use of traditional stock charting methods. This would result in a lot of uncertainty about your dealings as well as the stocks themselves.
Remember that a simple way to minimize your loss in microcap stocks is to invest your profits and secure your investments with each trade you make. By using this simple tip you gain experience with the profits you make and not lose your beginning capital therefore with due time and experience you will accumulate and increase your profits with most volatile penny stocks.
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