St Cloud , Florida 10/12/2012 11:00:00 AM
News / Stocks

Trust OTCtipReporter.com for Hot Penny Stock Alerts

High risk is almost always associated with high gain. Penny stocks are known to be in the high risk category because their prices can fluctuate more quickly than other types of investments. Since they are priced so low by definition, penny stocks have a tendency to rely on crowd behavior as a primary influence on their ultimate share price. The trick to investing in penny stocks, therefore, is to buy early before the crowd gets in.

By definition, penny stocks are classified as any stock that trades under $5.00. Some penny stocks even trade for sub-pennies, that is, fractions of a penny. Since penny stocks are priced so cheap, their marginal gain potential is very large. It’s not often that regular stocks priced at, say $30.00, will jump to $120.00 in a day. Promoted penny stocks, on the other hand, have amazing potential for high profits. It is extremely plausible for a penny stock to jump from $.03 to $.12 in one day, representing a gain of 300%.

Since penny stock pricing can jump rapidly in as quickly as one day, it is especially important for investors to know exactly when to buy. OTCtipReporter.com provides this information every day to investors in the form of free newsletter. In each newsletter, they provide accurate, detailed information that identifies a specific stock, its current trading price and why they believe it will soon trade much higher and yield explosive results. Timing is everything, and in order to cash in on penny stock trends one must act quickly with the free daily newsletter from OTCtipReporter.com.

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