By now I am sure that you know what penny stocks are, they are simply stocks that are trading under $5. If you are thinking that $5 is more than just a couple pennies then you are right but in relationship to the market these stocks are trading pennies compared to some of the bigger companies. What most people don’t understand about penny stocks is if they are too good to be true or not.
What you must remember is there is no such thing as a sure thing and with that you need to understand that some penny stocks will seem too good to be true. With that said you need to approach a penny stock the same way you would with any other one, you need to do your research and decide if the shares you are thinking about buying have a potential upside. What you must keep in mind is that every stock can drop in value and that is why you need to do all you can to ensure that your risk is not greater than the possible reward.
Just to answer your question, “Penny stocks are not too good to be true, they are the real deal and people are making money with them on a daily basis”. What a lot of people like abut penny stocks is they are very cheap to buy which means that the share price doesn’t have to increase that much in order to make a decent return on the trade.
My advice when it comes to making decent trades with $5 and under shares is that you need to figure out how to read the charts and look at the fundamentals in order to tell whether the company is an undervalued stock or not. My suggestion would be to only trade stocks are not trading at their current value since these will go up much higher in a very short time. What most people don’t realize is that trading shares under $10 means that you will look at the company in a whole different light and that will require you to change the way you read stock charts.
The last thing you must understand about penny stocks is they have a lot of benefits to them but the problem with them is a small dip in the share price will result in a good sized loss. Don’t think that these shares are immune to the actual markets movements because they are not, they follow along just like every other stock on the market. If you are ready to start making money then start today with some decent stock trading training.
What you must remember is there is no such thing as a sure thing and with that you need to understand that some penny stocks will seem too good to be true. With that said you need to approach a penny stock the same way you would with any other one, you need to do your research and decide if the shares you are thinking about buying have a potential upside. What you must keep in mind is that every stock can drop in value and that is why you need to do all you can to ensure that your risk is not greater than the possible reward.
Just to answer your question, “Penny stocks are not too good to be true, they are the real deal and people are making money with them on a daily basis”. What a lot of people like abut penny stocks is they are very cheap to buy which means that the share price doesn’t have to increase that much in order to make a decent return on the trade.
My advice when it comes to making decent trades with $5 and under shares is that you need to figure out how to read the charts and look at the fundamentals in order to tell whether the company is an undervalued stock or not. My suggestion would be to only trade stocks are not trading at their current value since these will go up much higher in a very short time. What most people don’t realize is that trading shares under $10 means that you will look at the company in a whole different light and that will require you to change the way you read stock charts.
The last thing you must understand about penny stocks is they have a lot of benefits to them but the problem with them is a small dip in the share price will result in a good sized loss. Don’t think that these shares are immune to the actual markets movements because they are not, they follow along just like every other stock on the market. If you are ready to start making money then start today with some decent stock trading training.
We’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.
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ReplyDeleteWe’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.