IS NOW A GOOD TIME FOR PENNY STOCKS?
With all of the volatility in the stock markets these days many investors are
wondering just why they are investing in the stock market in the first place.
Penny stocks are a land of true volatility, but when the entire market is
reacting the same way is it time for you to consider an investment in small cap
stocks?
If you are one of those concerned investors that is worried about the
fluctuations in your portfolio? If yes, then you probably can’t handle the wild
rides of penny stock investing. Read more...
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PENNIES INTO DOLLARS
Penny Stocks - Turn Your Pennies Into Dollars We've all heard about the investor how bragged about his 100% or 1000% return on a stock or about the guy who made it rich by investing in small caps, undiscovered stocks that made it big. In theory, it seems to be too easy. Invest in a couple of penny stocks, then sell them when they move up. Unfortunately, it is too easy. Too easy to lose money unless you know what to look for. First, lets have a look at what types of companies trade on the OTC BB or Pink Sheets. Stocks that no longer trade over $1 on the Nasdaq These include companies that fell from grace (Enron). While it is possible that they may see better days in the future, the odds are stacked against them. Its usually best to avoid trading these stocks. If you feel that the temptation ... >> full
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PICKING A PENNY STOCK
Wall Street gurus and penny stock investors alike it seems, are more likely to purchase newly offered stocks that have an easily pronounceable name, say a pair of Princeton University researchers. Adam Atler and Danny Oppenheimer found that a stock's performance immediately after an initial public offering (IPO) appears to be linked to how easily investors (penny stock or otherwise) can pronounce its name and stock ticker symbol. Danny Oppenheimer, commented, "These findings contribute to the notion that psychology has a great deal to contribute to economic theory." The two said the effect also extends to ticker symbols. For example, all things being equal, a stock with the symbol BAL should outgain a stock with the symbol BDL in the first days after an IPO. "We looked at intervals of a day, a week, six months and a year after IPO," Atler said. "The effect was strongest shortly after IPO. For example, if you ... >> full
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WHEN TO SELL PENNY STOCKS
All of your penny stocks buying and selling should, of course, be based on sound research both of the market and the companies’ recent history. How the company is doing in terms of profitability, whether they are just about to, or have just announced profits, losses or new patents, discoveries and products, can all affect your decision on whether, or not, to buy. Knowing the right time to sell your penny stocks however can sometimes seem, as much an art as a science, although getting it wrong can be fatal. Many people seem to put all their research efforts into knowing what penny stocks to buy and when to buy them. Investors seem to forget about researching to sell stocks. Instead, they let their emotions take control and sell at the wrong time. Investors selling at the "wrong time” fall into two categories. These categories are, The Runners and The Sitters. The ... >> full
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