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There really is only one reason to invest in penny stocks, and that reason is penny stocks offer the best chance of Enormous Profits in the stock market! Stocks that trade on the NYSE and NASDAQ just do not offer the same opportunities to book large profits, as penny stocks do. The key is for individual investors to take the initiative to learn how to Trade, Invest, and Prosper from the Plentiful Profit Opportunities that penny stocks offer! A 100% Gain (or a double) is considered a Home Run when investing in NYSE and NASDAQ stocks.
While 100% is a nice gain, only penny stocks offer on the opportunity to make 1,000% Plus Grand Slam Gains (ten bagger), which is why so many people invest in penny stocks! Penny Stock Prophecy takes the guessing game out of penny stock trading and finds the penny stocks that have the potential to make Big Gains
Many people believe in scouring through penny stocks in hope of finding the next Google or Microsoft...
But this is unlikely to ever pay off
Although there are many companies that have allot of potential trading penny stocks it is a common misconception that all the Large companies like Microsoft and Google started Started out as penny stocks. Most of these companies started out trading at the $25-$30 mark.
What are Penny Stocks?
The definition of a penny stock varies According to the Securities & Exchange Commission (SEC) any stock under $5 is a penny stock others set the cut-off point at $3, while some consider only stocks trading at less than $1 are penny stocks or the any stock trading on the Pink Sheets or OTCBB to be a penny stock.
What are the Risks
Penny stocks are incredible risky to trade in, although just a small increase of a few cents can potentially triple your investment, a few cents in the opposite direction could just as well cripple you financially. That's why its important to know your risk tolerance before you invest, just take a look at some of the risks when trading in penny stocks
The Lack of Information Revealed to the Public
Because companies on the Pink Sheets don't have to register with the Securities & Exchange Commission (SEC) enough company history is not always available to the public as is needed to make an informed decision when purchasing stock unlike on the NYSE and the NASDAQ exchanges. To make a correct decision enough reputable information needs to be available to the trader as possible.
Lack of Trading History
Not knowing the trading history only multiplies the difficulties to picking the correct stock.
Lack of Liquidity
Liquidity is the The degree to which an asset.
or security can be bought or sold in the market without affecting the asset's price. Penny stocks are known for there erratic movements these can either make or break an investment.
Some companies will pay for people to make fake recommendations, Look to see if the author of the recommendation is being paid for making this recommendation as this is a giveaway of a bad pick and make sure that any press releases aren't authored by people looking solely to influence the price of a stock.
These are just some of the potential risks investors face when looking for profitable penny stocks.
But of course with all these risks come great benefits too. A well chosen and painfully analyzed stock can increase dramatically within minutes of the market opening taking you with it.
There are also allot of new companies who have just started trading as penny stocks, some of these companies are working extremely hard to make their way up to the more reputable NASDAQ and NYSE and buying in these stocks can make you very nice profit as long as you make sure your covered for all possible eventuality and you have got all the information you can about the stock. MicrocapMarkets NASDAQ <$5 - http://www.microcapmarkets.com/data_main_nav.jsp?market=NASDAQ MicrocapMarkets OTCBB - http://www.microcapmarkets.com/data_main_nav.jsp?market=OTCBB Mining - http://www.miningmx.com/ MSN Money Central - http://www.moneycentral.msn.com/investor/home.asp Multicollinearity - www.stockcharts.com/help/doku.php Mutual Fund Facts About Individual Stocks - http://www.mffais.com/ Naked Shorting - www.businessjive.com/ NASDAQ Stock Market - http://www.nasdaq.com/ NASDAQ/NYSE/AMEX Stock Info - www.secfilings.com/ Natural Resources News & Commentary - http://www.resourceinvestor.com/Pages/default.aspx New York Stock Exchange - http://www.nyse.com/home.html OTCBB Daily List - http://www.otcbb.com/dailylist/ Patterns - http://thepatternsite.com/ Pinksheets Stock Info - www.otcmarkets.com/pink/index.jsp Platform - http://www.quotetracker.com/ Precious Metals - http://www.kitco.com/ Press Releases - http://www.prnewswire.com/news-releases/ REG SHO List - www.regsho.com/tools/short_list.php
Sites to help you find the penny stocks.
E-book on penny stocks. http://pennytraders.netfirms.com/
Here is where you get the highest percent gainers from Pink Sheets. http://www.pinksheets.com/marketactivity/trade_stats.jsp
Here is a great place to learn how to set up scans. http://yepher.com/~yepher/stockfetcher/command.html
Stock Screener: http://screener.finance.yahoo.com/stocks.html
Another Stock Screener (paid subscription required): http://www.stockfetcher.com/
Minute to minute trades http://data.island.com/ds/tools/timeandsales/index.jsp?rows=100&width=555&links=false&ht Join our Newsletter Today For Getting The Picks Before The Crowd.. http://www.pennystockprophecy.com/