It is possible that people can make ample income with the help of Penny Stocks.
There are people who can make massive amounts of wealth with stocks. In most
cases, they started with penny stocks, and eventually upgraded to other stocks.
Here the question arises as to how to start building profits rapidly in penny
stocks with the least risk?
When you find a penny stock with a good
trend, there is another thing to look at before we invest. You have to make sure
that the stock has a high daily trade volume. A large trade volume means that
the stock will stay true to its trend and will be more likely to be a safe
investment. I do not invest in penny stocks with fewer than 100,000 weekly
trades. Any fewer than that would be a big risk.
Firstly, it is important
that you are thoroughly aware of the company that you plan to invest your money
in. read the stock charts of the company to get to know the variable factors
such as past performance, current trends, projected high and low points and
other vital details. These will help you prevent losses and garner more profits
from the money you invest. Also refer to their profit and loss statement and
balance sheet. This will help you to know whether the company you are planning
to invest Is financially strong or not.
8- (OTC) USOG: Sub-Penny stocks
have been red hot lately and here is another example of a very nice chart
setting up. On a technical basis USOG is ready to break its 50-day moving
average. Most traders have experience when a stock breaks above its 50-day
moving average. The stock is coming off very oversold conditions. Major support
is (.001) cents.
Think before investing: A subscriber of email penny
stock newsletters is likely to get many offers on a daily basis. Some easy
earning offers can be tempting. Sometimes the emails are not sent by the
websites a trader expects. Hucksters and other unscrupulous people send them. It
is always important to investigate any type of an investment. One can simply
ignore the get rich quick offers or investigate them further.
over the points discussed above, the main question that arises in investors mind
is how to make money trading stocks. Well, it is only possible if the investors
pay attention to a few things. They must research about the financial report of
the company, its PE ratio, order book and its competitors. They must analyze
each company on the grounds of the past records, price charts, support and
resistance levels and all other indicators. Since these stocks are traded on
traditional trading platforms and brokers, make sure you check on the broker’s
or transaction fee. If the fee per trade is too high, it will eat up the major
part of your profit because you would be trading large volumes to make handsome
profit. trading penny stocks with low volumes is not worth the risk
First, why day trade penny stocks? For someone starting out this
is good place to begin. You will learn the ins and outs of day trading by
risking very little money. Could you imagine trying to day trade 1 share of
Google? By starting with these stocks, the amount you need to start with can be
Often times, penny stocks have been known to double or triple
in only a few days time which means that you can make some excellent returns in
only a short amount of time. Penny stock trading isn’t for everyone. I am
definitely not trying to discourage you in any way, but I am just trying to be
upfront and honest. I have had fun and made some money trading penny stocks. I
haven’t gotten rich, but I have generated additional income for my family, and I
have also had a good deal of fun and learned a lot along the way.