Beware of Fraud When Buying Penny Stocks
If you spend any time researching stock trading on the Internet, you are bound to come across the hype and exhilaration of buying penny stocks. Buying penny stocks involves stock trading with shares that are valued under $5. Some technically define a penny stock as a microcap stock which trades for less than five dollars. A microcap stock is a corporate share which has a market capitalization of under 250 million dollars.
Before you become too excited about the hype involved with buying penny stocks, you need to understand why this hype persists: fraud. Long before the Internet, penny stocks were ripe with fraud and the Internet has only made the propagation of such fraud more widespread and persuasive.
October 28, 2009 No Comments
Penny Stocks Are An Affordable Investment
With a declining economy, high unemployment, rampant foreclosures, and worthless retirements, Americans are turning to alternate methods of investments. Penny stocks are an increasingly popular form of investment; small investments that have potential to become high yielding returns.
Penny stocks are basic stocks that cost only $5.00 or less a share. In today’s world, it is nearly impossible to buy stocks for a penny, but having stocks that won’t be more than $5.00 a share is a good deal as well.
[Read more →]
October 22, 2009 No Comments
The People Behind Penny Stocks
There are a lot of players involved with penny stocks. The individual investors are merely a symptom of a much bigger production, which includes many different roles and just as many different motivations. Learning about these different figures involved helps to make a very complicated picture much more understandable.
Penny Stock Promoters - a sad truth with penny stocks is that many of them are promoted or “touted” by paid cheerleaders, whose only aim is to drive up the price of the shares.
October 20, 2009 No Comments
Penny Stock Investment Trends
In the penny stock investment game, the goal posts will be continually moving. Over the months and years, you will see changes in:
- the direction of the economy
- the priorities of consumers
- the policies of governments (local / state / nation wide / international)
- peoples’ habits, beliefs, and activities
- the presidential office and the senate
That’s just to name a few. The ways in which the rules can and will change is vast and complex, and while you can sometimes predict trends, most of the shifts will catch us by surprise.
October 20, 2009 No Comments
Penny Stock Trading Windows
Any experienced trader, whether dealing in penny stocks or otherwise, will tell you that the majority of stock gains are produced in short time frames. [Read more →]
October 20, 2009 1 Comment
