North Bergen, New Jersey 2/17/2010 2:13:56 AM
News / Business

The Benefits of Penny Stock Trading.

Why Penny Stock will Work for You.

Depending on whom you discuss penny stocks with, you will most likely get different opinions on what a penny stock truly is. Some may inform you that a penny stock trades under a dollar while other may say under $2 or even under $5. In order for you to have own opinions and ability to decipher what a penny stock is worth to you, need the right information, and Wall Street Grand is here to inform you with what exactly a penny stock is.

 

 

 Here are the different markets that you can trade penny stocks on. The OTC Bulletin Boards (OTCBB), over the counter (OTC) and Pink Sheets markets here in the USA. All the shares on this exchange are one dollar and up so are not penny stocks by my definition. Also there is the American Stock Exchange (AMEX) .The NASDAQ and AMEX are the safest with reporting requirements that enables investors to have access to the companies financial filings. Pink Sheets are the most risky with no reporting requirements. Yet these risky, pink sheet stocks give you incredible leverage. But all in all, buying and selling at the right time will be beneficial to your progression in building profits.

 

 

Why trading penny stocks works:

Penny stocks can be very profitable within in one to three years once you learn how to maneuver through the market. You may have heard investing in penny stocks is quite risky. It is, especially if you don't have the experience. Do not invest money that you cannot afford. So why put your money at risk? The main reason is leverage. When prices are so low you can buy millions, hundreds of millions, even billions of shares. At the lowest price of .0001 you can buy a million shares for $100.00 and hundred million shares for $10,000.00. If the price goes to one penny you have made one hundred times your money. Your $100.00 is now $10,000.00 and your $10,000.00 is now $1,000.000.00. Yes now you have one million dollars. But things like that don't occur very often. When a stock goes up to ten times your money it is called a ten bagger, five times a five bagger. Ten thousand dollars put into a ten bagger is one hundred thousand dollars put that into another ten bagger and you have a million dollars. You would still have a million even starting with a thousand dollars if you had three ten baggers in a row instead of two. This is not to say you can't lose money. Because you absolutely can. The beauty of trading penny stocks is you can work from home or from anywhere that has an internet connection. All you need is a computer, an internet connection, an on-line broker and some money to start. How much do you need to start? It depends on your situation. Don't risk more than you are willing to lose. Start out small until you have gained some experience. Join today to be part of the best free investment newsletter on the web providing market moving news to the investment community:
http://www.wallstreetgrand.com/.

 

 

Wall Street Grand LLC has not been paid for this press release. Please read our full disclaimer by using this link: http://www.wallstreetgrand.com/disclosure.html.