Do you ever hear about penny stock? Surely, you have ever heard about it. Then, do you know the best site for penny stocks? Of course, there are many kinds of them. This topic is very good to discuss.
Therefore, knowing what are penny stocks is the first thing that we should know. It is because having a deep understanding of it is very needed to help us be a success when doing trading. Then, it is good to know the tips also the trading sites of penny stock. Let’s discuss it in detail!
What is penny stock?
What is penny stock exactly? Well, Penny Stock, comes from the word ‘penny’ which means the nominal value of money in America which was the lowest value. Thus, penny stocks are small nominal shares.
This small change is usually a soft toy in the practice of frying or managing the stocks. Because of that, the price is very easy to go up and down quickly without a clear reason so that the risk of trading these shares is very high.
Many investors are tempted by shares like this because the price is often suddenly skyrocketed. Many investors think to try this stock, hopefully, it will be profitable. In many cases, they more often lose because this stock trading is controlled by the ‘dealer’. So investors are more dependent on ‘the favor of the city.’ What is meant by ‘bookie’ here is an institution or individual who has enough capital to move a stock.
Tips to do trading of penny stock
Grateful for small profits
‘Play’ stock is not a spell that can make you get rained on the money. Compared to large investments, penny stock will indeed produce a small profit. After all, focusing on something small is the key to success for greater profits.
Not one formula applies
This is not a job in an office that only needs to move data, and it is finished immediately. You also don’t have a definite formula and rules for profit. You have to try and test a number of strategies and hypotheses. You can use the same strategy throughout the year if indeed the strategy has been successful for quite a long time.
Must be ‘familiar’ with technology
Technological growth also affects the world of stocks and investments. You who are stemming money by ‘playing’ stocks, you should also learn how to buy and sell shares online.
Avoid low-quality markets
There are many stock markets where penny stocks can be traded. However, this exchange is certainly not all created equal. In fact, keeping to a “good environment” is one of the most effective methods to avoid the risk of stocks at low prices, while dramatically increasing your potential for success.
Avoid free stock choices
Penny’s shares are little followed and are usually traded very thin. This, combined with their super-low price per share, makes it the ideal vehicle for promoters and scam artists.
Always remember, free stock-taking only exists because of personal interests behind the company, or promoter, or scam artist. Be careful with undercover advertisements.
Trading site for penny stocks
It is one of the best sites for penny stocks for trading. The real strengths of the Interactive Broker are low cost and stock availability for short-sell. Although, Interactive Broker has short-sell shares compared to other brokers, please do not think that it can be very easy to short-sell pump & dump stocks. They give stocks to borrow for short-sell to ” come first, served firstly”; and given their share limited numbers, usually stocks for their short sell quickly run out.
Speed traders have returned recently to their glory of former, because they have added most of the routes of OTC back, and once again, extraordinary execution. You may use the Speedtrader almost for ordering and buying exclusively, and the routing costs are perfectly cheaper than elsewhere. One of the Speedtrader disadvantages is that maybe, you find the shares of OTC rarely for short-cells, but if you decide to open or make your own account with the division of Speedtrader’s ETC-clearing, it can help surely to solve this kind of problem.
They are not the best broker for execution & routing. However, they have two big advantages. First, Suretrader is located outside the US, so they do not enforce PDT rules. Their second advantage is they often have Borrows stocks for short-sell is pretty good.
Those are some of the best sites for penny stocks that you can try for your trading success.