While learning about penny stock investing, I soon discovered that the most difficult aspect of investing in penny stocks is how to find them. On the surface, the term "penny stocks" seems like a misnomer, but it is true you can literally buy and sell penny stocks for pennies. Indeed, the Security Exchange Commission (SEC) has defined penny stocks as low-priced company stocks under $5.00. With diligence and hard work you can buy penny stocks "over-the-counter" (OTC) for $0.001 to $5.00. To save money, you can do your own search from myriads of penny stocks on the OTC stock market. However, if you want to make money like most experienced investors, you might consider joining a penny stock picking service.
To be sure, you do not have to pay for joining a penny stock picking service. If you search the internet, you will discover that there are many stock picking services you can join for free. If you choose to join free penny stock picking services, make sure you know what you are signing up for because what is free may not necessarily be so. Searching for penny stocks has become like the old "Gold Rush," and you need know how to distinguish reputable penny stock pickers from crooked stocks promoters. There are many "pump and dump" stock pickers and penny stock promoters and dealers who are just out to dupe you into subscribing to penny stock newsletter scams. Having said that, there are many good paid membership services such as the Penny Stock Egghead you can join. I would recommend Penny Stock Egghead membership service for many reasons: Theirs is a one-time membership fee; it is a very small fee, but you get a lifetime membership that entitles you to be on their mailing list. Once you become a member of Penny Stock Egghead, you will start receiving a weekly list of penny stock on Mondays, with a follow up on Sundays.
The Internet is so vast that searching for information on micro-cap stocks (penny stocks) can be overwhelming. Without prior knowledge, it can be difficult for beginners to avoid jumping on information that appears credible on its face but which actually is devious information by trashy promoters of pump and dump penny stocks. With "pump and dump" schemes, promoters of penny stock newsletter scams often claim to have insider information without offering specifics. Their objective, of course, is to have you sign up, and then to offer you stocks that you did plan to buy.
Learn to look for these simple things when searching for penny stock picking services:
Penny stock picking services that use misleading information in order to "pump and dump" penny stocks.
The promoter is touting what Wikipedia refers to as "insider" information not available to the general public about penny stocks.
Free penny stock newsletters with unproven recommendation of stocks they deem to be the best stock, when in fact they are promoting their own stocks.
If you visit stock investing chat rooms or stock message boards and you see messages from promoters recommending that you should buy certain stocks immediately.
You can understand why institutional investors usually avoid investing in penny stocks OTC when you understand the net effect of pump and dump schemes. When promoters of pump and dump penny stocks decide to sell their holdings of company penny stock whose price they helped to hype, the investors who purchased the stocks in question will be left with penny stocks that have no value.
Investing in penny stocks is a very risky business. To ensure transparency and efficiency in the marketplace, the SEC recently announced that it plans to open as many as half a dozen investigations a month. These investigations are targeted at stock dealers, promoters or any one engaging in pump and dump penny stocks schemes to defraud mom-and-pop type of investors. Having the correct information on stock companies, regardless of their size, helps investors to make informed decisions regarding their stock investments. Getting information on micro-cap stock companies is not easy because some of these companies do not file periodic reports with SEC. On the other end, you can easily find information on blue-chip stock companies because they regularly file their periodic reports with the SEC.
On the other end, it is not easy to find information on penny stocks. It is generally believed that a significant number of OTC stocks are penny stocks of companies that are registered but are not listed on the stock exchange for a variety of reasons. One possible reason could be that these companies were "delisted" for failing to comply with the filing of periodic reports with the SEC. The other possible explanation is they are just too "thinly traded" to be listed. As a result, trashy penny stock promoters reportedly try to take advantage of many small investors who lack adequate information on micro-cap stocks.
By now you should realize that penny stocks are also known as micro-cap stocks or small microcap stocks. Micro-cap is another term for penny stocks that you buy OTC. It refers to companies who were once listed on the stock exchange but who longer qualify to be listed. To be sure, some company stock never get to be listed because of their size. A company that is thinly traded, meaning that there are fewer buyers and sellers for that company stock will often lack the market capitalization size to meet the listing requirements of a stock exchange such as the NYSE (New York Stock Exchange). As you might realize, institutional investors usually avoid penny stocks for lack of information. Moreover, it is generally thought that institutional investors don't like dealing in a market without adequate information for their trading analysts to evaluate stock companies' periodic reports. Also, institutional investors avoid penny stocks for fear of being taken for a ride by trashy pump and dump penny stock promoters who may manipulate stock prices.
To sum it up, the term blue chip stock companies generally refers to companies whose stock is listed on the stock exchange. Of course, blue chip stock companies are not created equal, just as penny stock companies of varying sizes make up the OTC stock market. As discussed earlier, the term OTC penny stocks simply refers to the buying and selling of stocks outside of the stock exchange such as the NYSE.
You can avoid high risk penny stocks by learning more details at http://getmoneyapps.com/stock-picks
To be sure, you do not have to pay for joining a penny stock picking service. If you search the internet, you will discover that there are many stock picking services you can join for free. If you choose to join free penny stock picking services, make sure you know what you are signing up for because what is free may not necessarily be so. Searching for penny stocks has become like the old "Gold Rush," and you need know how to distinguish reputable penny stock pickers from crooked stocks promoters. There are many "pump and dump" stock pickers and penny stock promoters and dealers who are just out to dupe you into subscribing to penny stock newsletter scams. Having said that, there are many good paid membership services such as the Penny Stock Egghead you can join. I would recommend Penny Stock Egghead membership service for many reasons: Theirs is a one-time membership fee; it is a very small fee, but you get a lifetime membership that entitles you to be on their mailing list. Once you become a member of Penny Stock Egghead, you will start receiving a weekly list of penny stock on Mondays, with a follow up on Sundays.
The Internet is so vast that searching for information on micro-cap stocks (penny stocks) can be overwhelming. Without prior knowledge, it can be difficult for beginners to avoid jumping on information that appears credible on its face but which actually is devious information by trashy promoters of pump and dump penny stocks. With "pump and dump" schemes, promoters of penny stock newsletter scams often claim to have insider information without offering specifics. Their objective, of course, is to have you sign up, and then to offer you stocks that you did plan to buy.
Learn to look for these simple things when searching for penny stock picking services:
Penny stock picking services that use misleading information in order to "pump and dump" penny stocks.
The promoter is touting what Wikipedia refers to as "insider" information not available to the general public about penny stocks.
Free penny stock newsletters with unproven recommendation of stocks they deem to be the best stock, when in fact they are promoting their own stocks.
If you visit stock investing chat rooms or stock message boards and you see messages from promoters recommending that you should buy certain stocks immediately.
You can understand why institutional investors usually avoid investing in penny stocks OTC when you understand the net effect of pump and dump schemes. When promoters of pump and dump penny stocks decide to sell their holdings of company penny stock whose price they helped to hype, the investors who purchased the stocks in question will be left with penny stocks that have no value.
Investing in penny stocks is a very risky business. To ensure transparency and efficiency in the marketplace, the SEC recently announced that it plans to open as many as half a dozen investigations a month. These investigations are targeted at stock dealers, promoters or any one engaging in pump and dump penny stocks schemes to defraud mom-and-pop type of investors. Having the correct information on stock companies, regardless of their size, helps investors to make informed decisions regarding their stock investments. Getting information on micro-cap stock companies is not easy because some of these companies do not file periodic reports with SEC. On the other end, you can easily find information on blue-chip stock companies because they regularly file their periodic reports with the SEC.
On the other end, it is not easy to find information on penny stocks. It is generally believed that a significant number of OTC stocks are penny stocks of companies that are registered but are not listed on the stock exchange for a variety of reasons. One possible reason could be that these companies were "delisted" for failing to comply with the filing of periodic reports with the SEC. The other possible explanation is they are just too "thinly traded" to be listed. As a result, trashy penny stock promoters reportedly try to take advantage of many small investors who lack adequate information on micro-cap stocks.
By now you should realize that penny stocks are also known as micro-cap stocks or small microcap stocks. Micro-cap is another term for penny stocks that you buy OTC. It refers to companies who were once listed on the stock exchange but who longer qualify to be listed. To be sure, some company stock never get to be listed because of their size. A company that is thinly traded, meaning that there are fewer buyers and sellers for that company stock will often lack the market capitalization size to meet the listing requirements of a stock exchange such as the NYSE (New York Stock Exchange). As you might realize, institutional investors usually avoid penny stocks for lack of information. Moreover, it is generally thought that institutional investors don't like dealing in a market without adequate information for their trading analysts to evaluate stock companies' periodic reports. Also, institutional investors avoid penny stocks for fear of being taken for a ride by trashy pump and dump penny stock promoters who may manipulate stock prices.
To sum it up, the term blue chip stock companies generally refers to companies whose stock is listed on the stock exchange. Of course, blue chip stock companies are not created equal, just as penny stock companies of varying sizes make up the OTC stock market. As discussed earlier, the term OTC penny stocks simply refers to the buying and selling of stocks outside of the stock exchange such as the NYSE.
You can avoid high risk penny stocks by learning more details at http://getmoneyapps.com/stock-picks
About the Author:
To really make money with penny stocks, you have to have investing strategies and tools to help discover the best stocks under 5. For most penny stock investors, the hard part of making money is how to find the best penny stocks to invest in. The art of making money involves learning and discovering the latest tools and techniques to make your online business successful. You can trulyBuy penny stocks using penny stock egghead by referring to our official website right now. Get the latest advice directly from this useful source of information at http://getmoneyapps.com/stock-picks.
No comments:
Post a Comment