Is it really possible to make significant money buying and selling penny stocks?
Yes, it is possible. Is it likely? Well, that’s another question. Some people have earned significant penny stock fortunes simply buying penny stocks low and selling them for a profit, but actually doing this isn’t as simple as it sounds.
Because these stocks are low value per share they are tempting for the beginning investor, but this is actually a complicated market that can be quite volatile. Even though the price per share is low, these stocks are generally traded in volume. This is how you make more money, but it also what makes them risky. Prices can go up or down quickly and as the price goes down you need to find a buyer if you want to sell your stock.
Buying penny stocks and selling them for a profit requires research. If you are willing to do the work and put in the time there is money to be made in this business. There are a few keys to success in this market.
Read Penny Stock Fortunes
It seems both counter intuitive and just plain odd to discuss one of the nations oldest and largest corporations on a site about buying penny stocks, but I guess it is just that kind of economic era.
The Detroit Free Press has this to say about the value of GM’s stock:
Read Buying Penny Stocks – General Motors Edition?
Most consider penny stock trading to be the exchange of stocks at a price between $1 and $5 per share. You’ll also see penny stocks labeled as micro cap stocks, microcap stocks, nano stocks or even just small cap stocks.
Penny stock trading occurs within the OTCBB (Over-the-Counter Bulletin Board) or on the Pink Sheets. So you’ll also find these stocks labeled as OTC stocks (OTC stands for over-the-counter). Penny stocks tend to represent smaller companies, newer companies or struggling companies. They either haven’t proven themselves enough to list on NASDAQ or the grand New York Stock Exchange (NYSE) or in some cases they’ve been penalized by those exchanges and removed.
There is a common misnomer regarding penny stock trading.
Read Penny Stock Trading
I found this interesting article relating to the economic crisis and the mortgage meltdown. Put in on your tin foil hat as some of you may see this as a bit of a conspiracy theory, but I found it at least thought-provoking.
Please note that Buying Penny Stocks isn’t promoting or supporting any single viewpoint on this matter. I just find it to be a compelling and informative discussion of the mortgage crisis. You’ll definitely find some articles on this site (a New Zealand news site) which I find silly and objectionable.
Here’s a glimpse:
Read Freddie and Fannie – A Penny Stock Tale
