Use Your Penny for Penny Stock Investment after Using It for Penny test for tires

Penny test for tires is only one of the benefits of a penny in daily life. Some people might underestimate the role of penny because of its small value. The truth is that penny has a lot of benefits including to make the owner richer than before. Besides using a penny to test the depth of your tires, you can also use it to invest in penny stock. Let’s learn everything more about penny stock including whether is penny stocks a good investment or not.

Understanding about Penny Stocks Investment

Penny test for tires

Let say, you have a penny in your hand right now. You are the one who decides whether the penny is useful for you or not. Some people might through away the penny but you can do differently. First, you can use it for penny test for tires. Just insert a penny into the tire’s tread groove and make sure that Lincoln’s head is upside down and facing you. Check the image and if you can see the image so you need to replace the tires.

So, is that the only benefit of a penny? Believe it or not, you can be an investor with a penny and make a lot of money. What you have to do is investing your penny into a potential penny stock in the market. This investment is called a penny stock investing because you can buy the stock for less than $5. Commonly, it is offered by small companies through the penny stock market.

Steps to Start Penny Stocks Investment

You have to understand what is the penny stock market before learning the steps to invest in this investment instrument. Penny stock market is the place where you can trade penny stocks. In this type of investment, you can trade online through a market known as OTC Bulletin Board or Over-The-Counter.

Penny test for tires

Over-The-Counter Bulletin Board or OTCBB is an electronic market for penny stocks. It is designed for traders and investors who want to find companies that sell penny stock shares. The companies listed on this bulletin board has passed the requirements made by the Securities and Exchange Commission or SEC or a regulator. This market gives benefits for both sides whether small companies and investors. By following this program, small companies have an opportunity to get money to grow from investors. On the other hand, investors who buy penny stock based on the company listed on the OTCBB get affordable investment instruments and earn more money from it.

Let’s continue the explanation about the steps to buy penny stocks. Let say, you get the best small company from the OTCBB you want to invest. Next, you need to use an online service such as E-Trade and TD Ameritrade to buy the stocks. Just create an account and transfer a small deposit so you can pay for the stocks and fees. When it is ready, you can start to trade. Another way to buy penny stocks is by asking for help from a trusted broker. Find out the best broker and follow the instructions to buy stocks.

How to Trade Penny Stock

The next question from beginner investors after learning about the penny stock market is where can I trade penny stock. For those who want to trade without help from a broker, you can open your E-Trade or TD Ameritrade account and trade your penny stocks there. Then, you have to place a purchase order in which you can choose two different orders, limit orders, and market orders. Limit orders are a good option for beginner investors or traders because you can control the price of the transactions. If you get used to it, you can try to use market orders. The risk of using market orders option is that sometimes you sell the penny stocks too cheap.

The List of Reputable Companies that Offer Penny Stocks

So far, you have learned about a penny stock and how to trade it. Now, you must know the list of reputable companies that offer penny stocks. It is an important thing to know because you are about to invest your penny in one of the companies. Just make sure that the company gives you a great return so you can earn more money.

Castlight Health

Penny test for tires


Castlight Health is a software company. The company is developing healthcare software and it is a good investment to choose. The annual revenue of this company is good in which the company earns up to $150 million a year. The stock value is also upside significantly and investors or traders have an opportunity to earn 4 to 5 times higher than the stock price. Interestingly, this company sells the stocks only $1.40 per share. It is considered as one of the penny stocks with great potential in the future.

Safe Bulkers or SB

Penny test for tires


Besides investing your pennies in the software industry, you can also spend it in the shipping industry. This industry becomes one of the most popular sectors nowadays and it is a good opportunity for investors and traders. Most people often think that they have to spend a lot of money to invest in the shipping industry. You don’t have to do it because a particular shipping company such as Safe Bulkers or SB is ready to sell its penny stocks to the public. You just have to spend around $1.55 to $2.00 to buy a stock. The earning of the company might be fluctuating but still, it is one of the penny stocks to watch for, especially for beginner investors or traders.

UR-Energy or URG

Penny test for tires


You might have a dream to build a specific type of chemical company. Instead of waiting for so long, you can just spend your pennies to buy penny stocks from the UR-Energy or URG. This company focuses on uranium production. The need for uranium is increased significantly and it will be so until the next few years. The company offers cheap stocks to investors and traders. You only need to spend 60 cents per share. It is less than $1 and cheap enough for the uranium production investment. Indeed, you can include the stock from this company as the great penny stocks to invest in.

Great Panther or GPL 

Penny test for tires


This company has a long history of penny stock investment. Great Panther started to offer penny stocks in 2008. Investors or traders just have to spend around 50 cents to $5 per share. It is a good option for those who want to invest in gold and silver sector. The silver price is also increased significantly up to 400% and investors have an opportunity to get return up to 50%.

Enel Chile or ENIC

Penny test for tires


Another small company that offers penny stock is Enel Chile or ENIC. It is considered as one of the largest electricity providers in Chile. The company distributes and generates power to millions of customers in Chile. The income is big enough in which the company can earn up to $500 million per year. Enel Chile offers penny stocks around $3.70 to $5.50 per share. This sector might give benefits and a great return for you in the future.

The point is that you don’t need to get confused about the best penny stocks you have to buy. The list of the companies above can be a great reference to start your first penny stocks. All of the companies are listed on the top ten penny stocks to buy on the bulletin board. It means that the companies have a great opportunity to develop in the future and give you a higher return from the investment.

The Way to Get Profit from Penny Stocks 
Choosing the best company is not only a way to get profit from penny stocks. You must learn how to use penny stocks to earn a higher return. Let’s discuss a little bit about how to make a profit from this type of investment as well as to prevent big loss.

Focus on the Solid Stocks at Good Price 
After examing the company profile, you have to find out the stock value and stock. There is a case that a company offers low price stocks although it is a strong company. It is better not to spend your penny on this type of company. The company might offer the pump and dump stocks. This type of stock might not give you a great return and even you might lose your money.

The best thing to do is finding a company that offers solid stocks at a good price. For example, invest your pennies on a turnaround company in which they are struggling to regrow from a bankruptcy. It is a potential company because such kind of company offers cheap penny stocks. On the other hand, if the companies successfully grow in the future it is expected that the value of the stocks is rising significantly.

Keep on the Eye of Your Stock Price 
If you are a trader and you want to get a higher return from penny stock, you must keep on the eye of your stock price. You have to check the fluctuation in front of the computer before trading. Checking the price is not enough and what you have to do next is spending time researching, watching, and reviewing the stock. Then, you can conclude whether you have to buy or sell penny stocks or not. When you get used to this activity, you will be an expert penny stock trader and earn money from it.

Don’t Put Eggs in One Basket 
Penny stock is only one of the investment platforms you can use. You can spend your money on other investment platforms. It is better not to invest all your money on penny stocks despite the cheap stock price. The best thing is that you get a regular small return from penny stock. Meanwhile, you can find other potential long-term investments. In the end, you will earn money from several sources based on the investment platforms you take.

Tips to Limit Extreme Lose in Penny Stock Investment

While focusing on how to earn a return from penny stocks, it is also important to know the risk. There is still a chance to lose money in this investment. You just have to learn the way to reduce this type of risk.

Stop-Lose Orders 
Some beginner traders or investors often want to earn a return as higher as they can. As a result, they don’t sell the stocks even if the price is good enough. They tend to wait a little bit higher and they forget that the worse might come. In this case, they lose everything and get nothing. The first trick to limit extreme lose in penny stock investment is by setting your stop-loss order. Commonly, a broker reminds you about this before investing money. It means that you have to set the price where you have to sell the stocks if it is reached. This trick is reliable and beneficial to do because you know that you have earned a good return from the trading. The case might be different if you only waiting for a higher price without setting the stop price.

Find Shares with Higher Trading Volume 
This trick is still related to the first one. In this case, you should try to set a stop-loss on shares with higher trading volume. This is a good trick because commonly the price is cheaper. The idea is when the stock  is cheap, investors will buy it. This condition triggers the increase of the shares price.

Check the Stock Volatility 
It might be a simple thing but most beginner investors and traders don’t care about it. You must check the penny stock volatility before buying it. What you have to do is buying penny stocks with a low volatility level. The more volatile the stocks, the more uncertain the value and price. It might be drop drastically and you will lose your money. So, for a safer option, just find a company that offers stable stock value and price.

Find Shares on Price Dips 
Some traders or investors are not interested in shares after a price dip. In contrast, you can look at this situation as a good opportunity. Commonly, a company with low price shares will struggle to grow and get as many as investors. There is a big opportunity that the company will grow and the share price rises significantly. This trick reduces extreme lose as well as increase the chance to get a higher return.

Things to Consider Before Trading 
Penny stock trading is a little bit confusing for beginner investors or traders. You need to know some considerations before trading so you can make sure that it is the right time to do penny stock trading.

Don’t Follow What People Say
Some people don’t know a lot about penny stock. They are interested in this investment because people said that penny stocks are a profitable investment. Then, they put all their money on this investment and disappointed with the result. So, the first thing to consider is that you have to understand everything about penny stock before doing it including the benefits and risks. Don’t follow what people say. Just do it because you are ready to do it. By understanding penny stock, you will be ready to face everything in the future whether the benefits or risks.

Read the Disclaimers 

Penny test for tires


You also need to read the information about penny stock including the disclaimers. The point is that you must know all the things about this investment before spending your money on it. You may read a lot of reviews, tips, and tricks, or how-to articles related to penny stocks. The most important thing is that you still have to find the real information such as visiting the official website. Checking on the OTC bulletin board is something you must do because this is the place where you can find reputable and trusted information related to penny stock investment.

Know When to Buy and Sell
Investing in penny stock is the art of the right time to buy and sell. That’s why you must learn the right time to buy and sell the penny stocks. One of the tricks is that you have to sell the stocks quickly as you get a good return. Let say, you might earn around 20% to 30% in a few days. If you can reach it, just sell the stocks. Don’t wait too long otherwise, you will lose the chance to get the return.

In conclusion, you finally know that penny stock is also a challenging investment to do. Despite the cheap stock price, you still have to consider many things, especially if you want to earn a higher return and limit extreme lose from penny stocks investment. This article also explains which penny stocks to invest in so you can do it accurately and safely. The best part is that you also understand that a penny has a lot of functions that give you advantages. Besides using a penny for a penny test for tires, you can also make money from penny stock investment.

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