Penny Stocks Investing

Question by Princessd1010: Anyone have a good tip for penny stock or really low cost stock that could be bought now?
Looking for a start-up company, something temporarily low, ect. If it is so good you don’t want to publish it online and would rather email me personally please feel free.

Best answer:

Answer by Joey S
HAYZ.
I got in at 24 cents for 10 000 shares. Currently at 17 cents, but this is a stock that was at 10$ before the reccession, 17 cents is not its value. A DOLLAR is not its value. It even reached 20$ in 2004, the potential is here.

Get in the ride before its too late, buy a lot.
Btw the company makes wheels and other stuff “Hayes Lemmerz International, Inc. was originally founded in 1908 and is the world’s largest producer of automotive and commercial highway steel and aluminum wheels. ”

So basically it makes wheels and only 20% of its business is in the states so the crash of the auto industry in US is not really a factor.
This company does a lot of business with FORD and FORD just said that they’re increasing production by 25%.

What do you think? Answer below!

Question by parker m: How does someone know how many shares a stock is selling?
Where or how can someone know how many shares a stock is transacted during the day till closing time. also how can you tell a stock has a limited amount of shares. I need details to my question, thanks.

ps. any penny stock tips that’s going to go bullish soon?

Best answer:

Answer by Kenny J
google

What do you think? Answer below!

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Penny stocks are the common or universal shares of general public that are traded at a low price. Stock market allows you to choose different types of stocks. A new investor must discover the fundamentals of selling and advertising shares in the stock market. These stocks are generally volatile and can make huge percentage movements in short span of time. Most of these stocks come from young or newly established companies. Recovery stock is a type of penny stocks in which, companies that were performing well at one time, but at present they are not performing well. Later on, these companies start building or recovering their economic cycle to increase their market value in a stock market. Brokers are a secret for a flourishing trading.  A stock broker plays many different roles, which are beneficial for any investor in attaining success in a share market. Brokers help in finding accurate stock trades and execute all buying and selling orders. Selection of wrong brokers may result in money wastage.

Classification of brokers:
Discount brokers: this type of brokers offers discount for their services. They provide plentiful market information, and they squeeze the online platform very rapidly.

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Full service broker: these brokers offer valuable advice to the traders for selling and buying of shares.

Many investors believe that investment in stock exchange is highly risky. Companies that are improving from massive losses and that provide basic supplies will offer more penny shares to the general public.

Classifications of stocks:

Common stocks: it provides a specific amount of ownership and entities for enhancing business decisions. 
Preferred stocks: they offer you the best option when it comes to paying out the dividends.
Growth stocks: they provide fast growth in stock market and permit investors to make money from a growing corporation.

Penny stocks offer a small or minute capitalization and do not enclose a high-quality of documentation in terms of presentation in the field of trading. Always acquire correct information about the stock market, otherwise outcomes will be dangerous. The main reasons for investing in a stock market usually occupy the anticipation of large and important profits. Penny stocks, which have been potential for yielding high stocks in long a term, are best suited form of penny stocks. You must keep away from investment in stocks that have negative earnings per share.  These forms of stocks are most profitable and rewarding investment in the stock market. The superior potential of the money collection is to shift the larger quantity in small period of time. There are some important risks, but in case of trading these risks always complements with sky-scraping rewards. This stock is the usual shares that are offered to the general public. Some listings of stocks are available in the stock exchange market for proving you with the whole information of prospective investors. These stocks are very eye-catching or attractive for the first time investors because they are given the full opportunity to invest in shares of stock without spending extra-money.

Every now and then, I like to throw out some information that, for some, may seem a bit trivial, but for MANY, is super helpful when it comes to investing in the wild world of penny stocks!

Many people who invest in penny stocks do so because penny stocks provide traders with the opportunity to dramatically increase their profits, however, it’s important to realize that it also provides an equal opportunity to lose your trading capital quickly.

The following 5 tips on penny stocks can help you dramatically decrease your risk when it comes to investing in penny stocks:

1. penny stocks are a penny for a reason.

While we all dream about investing in the next Apple or the next Cisco, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker’s money for an IPO. This doesn’t make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

2. Trading Volumes

Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn’t trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume.

Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding “dead money”, where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.

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3. Does the company know how to make a profit?

While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?

If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.

4. Have an entry and exit plan – and stick to it.

Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at .10 and sell it at .12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is 000, a 20% loss is a 00 loss. Do this 5 times and you’re out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.

If your plan was to sell at .12 and it jumps to .13, either take the 30% gain, or better still, place your stop at .12. Lock in your profits while not capping the upside potential.

5. How did you find out about the stock?

Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.

Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.

How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You’ll start to notice quickly if you have subscribed to a good newsletter or not.

One other tip I would offer to you is not to invest more than 30% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 30% grows, you’ll have more than enough money to make a healthy rate of return. penny stocks are risky to begin with, why put your money more at risk?

Sign up to the ChartPoppers Newsletter using any of the boxes provided throughout the site, and see the difference a good Newsletter like ours can make!

Stocks that are traded under five dollars per share are known as Penny Stock.  They are very risky and so investors generally avoid them despite the fact that money can be made in this market. However, theotcmarket.com suggests some penny stock tips that investors must keep in mind.

Firstly, because of great price fluctuation in penny stocks there exists a high risk in the market for investors. Hence one of the most important penny stock tips is to avoid investing in this market.

Secondly, if you want to invest small amount of money and get high returns, it is very important to investigate thoroughly about the companies before taking any step.

Theotcmarket.com suggests the investors to take every step in this market very carefully. Most of the penny stocks come from companies that are newly formed or virtually unknown. Theotcmarket.com understands that in such cases the investors hardly get any information to rely upon while trying to make investment decisions.

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However, this doesn’t mean that trading in penny stocks will always lead you towards deceitful companies. This only makes the case more complicated and emphasizes the need to research more deeply about the companies before taking exit or entry decisions.  Sometimes, the penny stocks might also belong to companies that are in very grave financial conditions. Thus, one of the best penny stock tips is to avoid buying such penny stocks until and unless you are aware of some insider of the company whom you can depend upon.

There is another high risk involved that generally comes from the difference in how the penny stock is traded in market. Major exchanges like the Nasdaq and NYSE do not list the names of the penny stocks; rather they consign to the secondary markets like for example to the Pink Sheets. The liquidity evaluation of how easy it is to sell and buy a stock is comparatively lower in the secondary markets than in the major exchanges. Because of the low per-share price, it becomes natural for investors to hold thousands of shares.  The liquidity may often disappear and it becomes difficult to come out of such positions without driving the share price.  Thus, always try to avoid high liquidity of low stocks in the secondary markets. Make it a point to think carefully about the possible results or consequences before investing in penny stocks. This is one of the most important penny stock tips the investors must follow.

One of the most crucial penny stock tips to be followed is never to put in money in things, which you don’t know. If in any case, you don’t understand anything about penny stock, just let it pass.

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Question by NIKI B: I think I have a hot penny stock tip. What do you think?
Looking over my friends shoulder, I saw he had a hot penny stock tip. Anyone think this is a good one: ABTG

Best answer:

Answer by scorpio
it is a suckers bet…don’t waste your money on penny stocks.

Add your own answer in the comments!

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Question by Sam: Basic info on penny stocks tips or just anything?
I have 200-300 dollars and I want to invest in stocks my dad said penny stocks r good and he is going to invest with me so yea just help me however

Best answer:

Answer by Archer2000
Penny stocks can be good, but they are also higher for risk as well.

If a company’s stock is less than $ 1, you should ask yourself why it is selling so cheaply.

Has there been bad news about the company?
Are they just starting up?
Did their industry fall apart when a foreign country started replacing their product?

If you plan to invest in low-priced stocks, be careful, find several companies that you like and diversify across five or more to prevent losing all your funds in a single company going bankrupt.

What do you think? Answer below!

When investing money, there are several different methods of investment that can be used. A popular method for many new investors is to get involved in penny stocks. When doing this, people should understand a few penny stock tips to make sure they don’t get burned.

The first step before getting involved in penny stocks is to understand what they are and how they work. These are stocks that are traded at a very low price. All penny stocks are under five dollars per share, many of them under one dollar. Some can even be traded for less than a penny. They are often popular with new investors because they cost little to invest but have the possibility for big returns. There is a lot of money to be made in this market, but many investors avoid it because it is very risky due to the amount of fluctuation in price.

Know what types of penny stocks are available. They are usually available from companies that are not as well established. Most of them are new and just starting out or do not have a good enough business plan to be funded by a bank. This does not necessarily mean that they are bad investments, simply that people should go into them with caution. Always pay attention to the company’s profits. If they are losing money, find out why and determine if it’s a manageable loss or if they will need more financing. A necessity for more financing will not fare well for stock holders.

Research is crucial before investing in any type of stock, especially penny stocks. Some people think that investing in these types of stocks is a gamble, but this is only true when the proper research has not been done. It is important for someone to know what they are getting into before risking their money. Try subscribing to a newsletter that has a history of presenting subscribers with good opportunities. They can give up-to-date, time sensitive information on profiles and featured companies. They will be able to recommend investment opportunities and some will even give buying and selling prices along with how long the stock should be held.

Before entering into the world of penny stocks, everyone should always have a plan. It is a good idea to have both an entry and exit strategy and stick to it. Because this market is very unpredictable, people should know what to do in every potential situation. It is suggested to never invest more than 20% of overall profit because putting up too much capital presents a greater risk for losing it.

Investments can be a very tricky but lucrative opportunity. Though there is a high potential for reward, there is also a much bigger risk. Following some penny stock tips can help any investor to yield their desired outcome from their penny stock investment.