***How to Buy Penny Stocks
The OTC Stocks Being Less Regulated they are subject to Scare Tactics and Manipulation!.......
***Once you've learned to dodge the scammers, there are five steps to follow when purchasing a penny stock.
It's important to evaluate whether the stock has upside potential. You're investing because you'd like to get a return, right? So you need to ask yourself whether the penny stock you're considering truly has upside potential, or if it seems more to be a flavor-of-the-day stock, such as a company that's trying to ride the coattails of the latest investment fad.
***The Bottom Line
Penny stocks are extremely volatile and speculative by nature. As most trade on OTC exchanges or via pink sheets, where listing standards are lax, penny stocks are susceptible to manipulation and fraud. Still, the potential to make large returns is a strong allure, driving risk-taking investors into taking positions in these securities. Though many penny stocks go bust, if an investor exercises careful fundamental analysis and picks sound management teams, they could find the coveted diamond in the rough.
