What makes penny stocks such an appealing investment opportunity is
the fact that they can rise in price hundreds, and even thousands of
percentage points in one day, unlike a blue chip stock.
Millions of investors around the globe depends on the highly
fluctuative penny stocks every day to generate income and to
maintain their livelihood. It's a unique financial market that
levels the entire playing field and provides the same opportunities
to beginner to expert traders.
The Definition of a Penny Stock
A penny stock is a small cap stock that trades under $5 a share, and
they are found in every financial market around the world, however
the NASDAQ/OTC-BB Penny Stocks are the most actively traded out of
all the markets.
The Profit Potential
The profit potential of an actively traded small cap stock "trading
under $5/share" is truly enormous when compared to a stock at a
higher price. Most U.S. traded penny stocks are found listed
in the NASDAQ OTC-BB Market. Keep in mind, that you will also
find the same type of penny stocks traded in foreign financial
markets around the world.
An actively traded penny stock on the
OTC-BB can fluctuate in stock
price hundreds, even thousands of percentage points in one day.
Some of the factors that affect how the stock
reacts under general market conditions are as follows: 1.)
Investor Awareness, 3.)
Current News, 4.)
Market Makers, 6.)
Past chart activity, 7.)
General Industry Conditions, plus so
When you combine all of the stock factors mentioned above, the end
result can be very profitable for the savvy investor.
Overall, Penny Stocks are risky investments, however they can be a
gold mine for the experienced trader & because of the all round
profit potential that these types of investments offer, they have
become a serious income opportunity, that's capable of generating
quick ROI "Return on Investment" for traders, regardless of what
country they're in.
If you are aware of how stocks trade on the OTC-BB, you will know
that they can rise exponentially, yet fall exponentially. It
is very common to witness penny stocks double, even triple in stock
price daily. The trick is to know when to buy and when to
sell, and decide which type of order is best suited for investment
Some of the most common penny stock fluctuations are:
.001-.005, .01-.05, .05-.15, .20-.60, .60-$1, $1-3, $2-5
Let's make a comparison...
Penny Stock Vs. Blue Chip
Small Cap Traders "in general" do not hold their penny stock shares
for an extended period of time. Penny Traders are looking for
a quick turnaround and these types of investments offer that.
A PENNY STOCK: Let's you have a $1,000 and you buy 20,000
shares of a penny stock trading at .05. This stock only has
rise in price .05 for you to double your money. Significant
price movements between .01-.05, and .05-.10 are extremely common
and we know that you'll agree if you have witnessed some of the
penny stocks trade on the OTC-BB. The price of a penny stock
can be affected as easily as news, volume, market makers, etc..
Knowing how to play the stock with these factors is the key to
generating income in this market.
A BLUE CHIP STOCK: If you were to invest the same amount of
money ($1,000) in a stock trading at $30, you would only be
able to purchase 33 shares total. Now get this... the stock
would have to increase in price "$30" (Thirty Dollars) for you to
double your money. In order for a stock like this to double in
price, there would have to be some major developments in the company
itself for the stock to reach those levels. For the most part,
Blue Chips or Higher Priced Stocks rise and fall on a more gradual
and controlled level. Penny Stocks react in an opposite
manner, in the sense they can rise in fall dramatically in one day.
The bottom line is that Small Cap or Penny Stocks are a riskier, yet
more profitable investment opportunity for investors over Blue Chips
or Higher Priced Stocks. The great thing about penny stocks is
that you may buy them with a regular Individual Cash Trading Account
with an Online Broker, and you don't need any prior experience
"although it is helpful". If you have the desire to invest in
the U.S. NASDAQ Market "OTC-BB", and you are from another country,
you will have no difficulty at setting up a brokerage account online
and begin buying and selling penny stocks. If you are a
foreigner to the U.S., you will need to fill out a special for that
the Online Broker will provide you.
Notice to all International
You may apply all of our Penny Stock Trading Tools and Information
to any financial market in the world:
Buying and Selling Penny Stocks...
When placing orders to either buy or sell
shares of any publicly traded penny stock, investors should always
be able to: 1.) Identify the
type of stock it is, 2.) Know
the lowest and highest points the stock price has hit over the
previous 52-weeks, 3.) Set a
projected entry & sell point, 4.)
Know what kind of order to place
(For Example: GTC "Good Till' Cancelled",
or Limit Order, etc...),
5.) He/She is up-to-date on current
company events & press releases, 6.)
Has a sense of where the resistance points
are, 7.) Know the market makers,
8.) General Investor Awareness,
plus so much more...
You will also need to have all of the trading
tools on hand to help you buy and sell penny stocks more efficiently
Penny Stock Lists "All Markets", Trading
Tactics, Trading Tutorials, Chat Rooms, Message Boards, Penny Stock
Newsletter/Mailing Lists, Software "Tracking, Analysis & Momentum
Finders", Penny Stock Brokers, SEC Info Sites, Free Realtime Stock
Quotes, Online Portfolio Managers, Daytrading Terminogy, plus so
What The Penny Stock
Market Is Not...
Many new Penny Stock Investors think the OTC-BB Market is literally
a "Bowl-of-Cherries", and believe that they will do well just
because they have a general idea how to buy and sell penny stocks.
Well, if you chatted or spoken with a Penny Investor, you will know
that IT IS NOT A BOWL OF CHERRIES. In order to buy and sell
penny stocks profitably, the investor must be informed of the latest
techniques, resources, tools and information to achieve a
substantial Return on Investment. The sad thing is, most penny
investor do not have the proper tools on hand to consistency
generate profits in the market.
Our company does in fact make trading Penny Stocks seem like a
Bowl-of-Cherries. We are a serious company and do not mess
around, and we don't take inaccurate information lightly. We
make sure that investors have trading tools on hand to buy and sell
small stocks profitably throughout every trading day.
Nobody likes to lose money, we know that... We are a very personable
company and are people just like you. You work hard for your
money, and our resources intended for you to grow it, not lose it.
The Internet is a big place, and there are many web sites that claim
they are dedicated, but in reality are not. Once they get
their money, they want nothing to do with you. WHAT KIND OF
BUSINESS IS THAT?
If you send us an email, we will respond to you personally and
follow through complete with whatever you may require, even if it
means calling or going to your location. How many companies
can promise that?
We urge you to check out our
eBook, and decide for yourself
it's something you can use. If you plan to or currently trade
small cap stocks, then you need this eBook. That's the bottom
Over the years, we have witnessed many changes in the market and
have uncovered hundreds of industry techniques that has helped
educate our customers for years, and assisted them in generating the
kind of profits they've expected in the small cap market. It
is of utmost importance to know about every aspect of a penny stock
before you invest in it, in order to maximize your ROI "Return on
Investment" with every trade you make. We can guarantee that
investing without knowledge WILL BE your worst enemy with
every BUY/SELL order you make.
We've been in the Online Penny Stock Information Business since
1995, and will remain on the web for years to come. Our staff
of financial information researchers are dedicated solely to
compiling the most useful trading resources, tools and information
for penny investors, and we are proud to present out flagship
Stock Tool Chest®