What is a penny stock?
A penny stock is any stock that trades below $5 a share. Sometimes they can even be lower than $1 a share. Penny stocks can fluctuate wildly in price and substantial gains can be made in a few days or even hours. Most penny stocks are traded over the counter (OTC) through quotation services like the OTC Bulletin Board and the Pink Sheets. There are thousands of penny stocks trading on these services. Penny stocks are considered attractive because you don't need much overhead or initial investment capital to buy them.
Where can I buy penny stocks?
The easiest way to purchase a penny stock is by opening an account with a stock broker. There are many online brokerage firms to choose from including: TD Ameritrade®, Scottrade® and E-Trade®. Pay attention to any penny stock brokers commissions and transactions fees as they can eat away at your profits.
How much money do I need to start trading penny stocks?
Most brokers require $500 to start trading penny stocks. You do not need much initial capital to begin investing in penny stocks but check with your preferred brokerage firm for what the minimum amount is required to set up your account. Never use your entire portfolio for penny stocks. It is suggested to use just a small portion of your portfolio for penny stock trading. Many investors and traders have grown their accounts significantly with negligble funds.
If I invest in penny stocks, where can I track them?
There are many websites that can help you track your penny stock investments. Some include Yahoo Finance and Google Finance. Both provide financial news, stock market information, and data and information about companies.
Why invest in penny stocks?
Penny stocks can offer the best chance for making huge profits in the stock market. Many savvy investors have found that adding penny stocks to their investment porfolios can add massive returns to their account in various lengths of time. Stocks that trade on the NYSE and NASDAQ boards do not offer the same opportunities for big profits the way some penny stocks do.
How do I find good quality penny stocks in which to invest?
By signing up for StockFreak.com's FREE newsletter, you will get alerted on penny stock companies listed on the OTC Bulletin Board, and even AMEX and NASDAQ that we believe have short and/or long term potential. We dig and comb through the market to find you undervalued penny stocks that may result in potential gains.
How safe is my money in theses stocks?
Much like any kind of investing, there is always risk. Although penny stocks can be more speculative than other investments, they are also very attractive because of how cheap they trade and the substantial gains they are capable of producing sometimes. It's important to educate yourself thoroughly when it comes to penny stocks.
What kind of penny stocks will StockFreak.com alert me to?
Our alerts are penny stocks that are listed on the OTC Bulletin Board, NASDAQ, and AMEX.Why do you send these free alerts?
There is billions of dollars being traded on most days the market is open. We want to help you make some of that money. It's our belief that savvy investors do not need to pay a lot of money to gain access to information that is public anyway. It takes hours to research and many of you do not have the time for that. We offer our readers trusted ideas for penny stocks that may be able to produce potential gains. Our newsletter is completely free, as is all the information on our website. Feel free to share the information with those you know so that our team of researchers can reach an even larger audience.
How often will I receive a newsletter?
Our newsletters are sent out on a fairly consistent basis on a variety of stocks that our analysts and researches believe are undervalued and should be alerted. You may receive our newsletter once a week and sometimes even more. We send out information as often as we deem necessary in order for you to be well informed and have all the latest news available to you.