What you need to know about penny stocks
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BROKE? How to Get Started Trading Penny Stocks With Just $100
How to Buy Penny Stocks (for Beginners)
Michael S. So can you! The experts at RagingBull are here to help. Day trading penny stocks has skyrocketed in popularity in recent years due to the low barrier to entry and the ability to turn small sums into large gains. Savvy investors who have learned how to make money with penny stocks have the potential to make quick profits, but the vast majority of penny stock investors will lose their shirts. Image via Flickr by mikecohen The OTC markets come into play when you consider where the penny stock is traded.
Penny stocks come with high risks and the potential for above-average returns. However, investing in these products is highly speculative and investing in them requires care and caution. Due to their inherent risks, few brokerages even offer penny stocks to their clients. Penny stock companies are often shares of companies headed for bankruptcy, small or new companies with little or no following, or business who are highly over-leveraged. Penny stocks can be defined in many different ways. Penny stock scammers deceive by luring inexperienced investors into investing in cheap and worthless stock and taking their money.
Protecting Yourself from Pitfalls in Penny Stocks
Let's get you up and running with trading penny stocks quickly. Penny stocks and low-priced shares are not right for everyone, despite the fact that they do have a lot of great attributes. They truly can turn a small investment into a large sum of money pretty quickly but can just as quickly wipe those dollars out. For many people, the potential for big rewards does not outweigh the risks. Be honest with yourself, and do not feel bad about walking away from the entire concept. In general, this is often the best choice, because MOST situations involving penny stocks result in many investors taking losses.
Access insights and guidance from our Wall Street pros. Find the product that's right for you. But what are penny stocks, and can they really deliver on those promises? Here's my 2 cents worth on penny stocks. Low-priced, small-cap stocks are known as penny stocks.