Why penny stocks
Why Penny Stocks?
How often do you see a Fortune 500 company experience triple-digit returns in a matter of minutes?
Penny stocks, on the other hand, are capable of delivering enormous gains. In fact, this happens everyday and it is our job
to find these plays and alert them to you before anyone else.
How To Trade Penny Stocks?
For years traders have been trading penny stock and small cap stocks; which be definition are any stock under $3.00 per share; yet they haven't been able to make consistent profits. As you know, penny stocks are some of the most profitable stock to trade in today's stock market. They key to making money with penny stocks is to find the top stock pick at the right time; this is where our service Penny Stockster comes into play.
Our Penny Stockster website spotlights today's top stock picks. Our stock picking service will help you to learn about investing and trade in "hot stocks." With years of proven stock picking experience we feel you will enjoy our research team and penny stock trade alerts that we send directly to your inbox throughout the week.
If you are looking for the best broker to trade penny stocks with then I would suggest a penny stock friendly broker like Etrade, they have a flat rate commission no matter how many shares of stock you purchase.
Once again we thank you for joining our premium team of stock traders here at PennyStockster.com site and we look forward to many profitable trade opportunities ahead.
What are penny stocks?
Aside from companies with tiny to small market caps with tremendous upside potential, penny stocks are among the riskiest investments out there. While the definition of a penny stock varies from a common stock that trades for less than five dollars a share to a micro cap equity trading for less than a dollar, we can all agree that penny stocks are low-priced, highly volatile and, typically, speculative in nature.
Penny stocks run the gamut from sub penny stocks as low as fractions of one cent (e.g. $0.0008) to shares in companies with market caps of less than $50 million. These descriptions and characteristics are all well and good but, for our purposes here, Mr. Solvent considers penny stocks as stocks that trade with a price per share of less than five dollars.
If you're even remotely familiar with the capital markets, you're fully aware that a stock could start the day as a higher priced stock, decrease in value throughout the day, and technically become a penny stock, even temporarily. Of course, if you're a penny stock trader, small cap investor, or otherwise reading this, chances are you're looking for that next big opportunity that could run up a few hundred percent in a day, or even a thousand times its initial purchase price in a few months to a year.
While opportunities for such massive intraday, or even monthly, gains are almost unheard of in most capital markets, traders and investors are much more likely to see these profitable situations in stocks traded over-the-counter (OTC) in the world of penny stocks.
Taking Mr. Stockster's definition of a penny stock (all stocks under five dollars per share) into consideration, penny stocks can be found on the Pink Sheet market but also on other exchanges such as the Nasdaq, OTC Bulletin Board, and American Stock Exchange, also known as the NYSE Amex.
Whatever the case, and the price of the stock may be, traders and investors must have resources to purchase and trade penny stocks. There are plenty of penny stock brokers that allow you to trade penny stocks on the internet but it's always good to look into each broker's commission rates, minimum funding amounts for new accounts, tools and features, and fees and restrictions that may be associated with buying and trading penny stocks.
These are some popular penny stock brokers you may have heard of: ThinkorSwim.com , Etrade.com , ChoiceTrade.com , Schwab.com , Fidelity.com and Scottrade . Some penny stock brokers have no minimums, while others require at least $500 or more. For example, if you want to look into a margin account, chances are you'll need an intitial investment of $2,000. Again, taking the time to chose the right, cost-effective penny stock broker to suit your needs will help you on your path to becoming increasing capable of meeting your financial obligations. Remember, being solvent involves a combination of planning, education, decision-making and self-discipline.
In addition to having a penny stock broker, Mr. Stockster finds it useful to utilize tools such as stock screeners. In particular, Mr. Stocker has found that EquityFeed has it all -- powerful and fast filters (price, volume, movement, highs, lows), easy-on-the-eyes charting, level II quotes, alerts, research and news, sector views and the list goes on. Check it out for yourself.
Mr. Stockster and pennystockster.com are not a financial advisory service. We ask that our members read and fully understand our Disclaimer, and calculate risk based on their own due diligence and individual financial circumstances, after speaking with a licensed financial advisor.
Never invest in any stock mentioned on this website or in any email from Mr. Stockster and Pennystockster.com unless you can afford to lose your entire investment.