![]() The companies listed on the Nasdaq are the most reliable penny stocks. There are minor differences between the two. In general, these stocks trade on what is known as “pink sheets,” OTC Bulletin (OTCBB), or the Nasdaq. They are lightly regulated by the SEC which often makes them very questionable. These securities don’t trade on the NYSE. Penny stocks are defined by the SEC (Securities and Exchange Commission) definition as stocks that trade for less than $5. You can find profits and success too, as long as you’re prepared and as long as you put in the work. In June 2020 I turned $70,000 into $1.15 million and made over $4 million total in 2020 alone. So the simple fact that needs to be considered here is this: Putting any of your money into penny stocks is a huge risk.īut something important to note is that if you do your due diligence and be smart about how to choose to trade with penny stocks, you can come out of it making a decent amount of money.Īs someone who has made money in volatile conditions and even in the unpredictability of 2020, I can say with confidence that the volatility of penny stocks is something you can capitalize on. Scammers take advantage of this and it all ultimately leads to you losing your money. Their laziness translates to them not doing any research of the companies that they’re planning to invest in that apparently have potential. Both of these factors seem to have contributed to this unexpected rise.Īfter discovering them, people often jump in too quickly. Social media platforms like Twitter and Reddit have been used as a tool to hype up dirt-cheap stocks, in order to entice an unsuspecting trader into buying them. This led to many wanting to look into trading and fall for the get-rich-quick promises made by companies running penny stock scams. So many around the country lost their only stable source of income. Analysts believe the pandemic and social media could be a reason behind this new peaked interest . Interestingly though, last year suddenly saw an increased interest in it. Many investors prefer to not even touch them. Since then, the popularity of penny stocks has also seen a decline. Still, it garnered attention because any kind of attention, positive or negative, is still attention. It tells you how people like Jordan Belfort scam these naive investors into putting their money in bad companies. The interesting thing to note here is that the movie clearly portrays penny stocks in a bad light. ![]() When Jordan Belfort’s story became living room talk because of The Wolf of Wall Street’s insane popularity, many people started paying attention to penny stocks. Penny stocks have always had an interesting reputation. I am here to tell you how to go about penny stock trading by using a realistic approach that will help you assess your risk and keep your trading in check. No, I’m not talking about get-rich-quick scams that take advantage of inexperienced investors who get lured into investing their hard-earned money into absolutely worthless companies. What is a secret (from the beginners, at least) is knowing how to actually make some money by trading penny stocks. Okay, so it’s true… Penny Stocks are high risk! BUT… this is actually good news for you!!Įvery trader, no matter how big or small, knows that penny stocks are high risk.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |