Why invest in Penny Stocks? Penny Stocks are becoming more popular as the months go on, since the rest of the market has been stagnant. More people are investing in them since there is much more profit to be made. It is hard to find a $30 stock that goes to $120 while it is much easier to find a stock that goes from .30 to $1.20.
How much money do I need to start trading penny stocks? Not that much. Many investors have started with as little as $500 and expanded their capital from there, but you may invest however much you like.
Where can I buy Penny Stocks? Not all online brokers will allow you to purchase penny stocks. TD Ameritrade®, Scottrade® and E-Trade® (just to name a few) allow penny stock trading, but I would recommend a company where they do not require a minimum to create a trading account so you can even start with as little as $100 and they charge the lowest commission fee I've ever seen on the net at only $4.50 per trade! Visit www.Zecco.com.
How do I find good quality Penny Stocks? We must be able to determine the difference between a good company and a good OTC BB company. When you buy a listed stock you are buying a company that is owned by so many more people than a bulletin board stock. In giant corporations things like executive pay, what insiders are buying or selling, and how much they waste on expense accounts don't matter very much. In our world these things are much more important, think of an over the counter stock as a Mom and Pop company. In many cases one or two people run the entire company and even do the accounting and SEC fillings. We must determine what company's legitimately make or sell a product or service, and not just push paper around to sell shares to the public. A good way to do this is to spend five minutes researching a company and if you can't figure out what they do, make or sell, then forget about it.
Do you only send out penny stocks? Yes, all stocks that we send out are penny stocks. In fact, the reason we promote these type of stocks is because that is where the money is to be made, there would be no way in the world to make 5000% on your money trading stocks priced over $4, especially starting with only $1000. And the same goes for daytrading as well, trading stocks over $4 is not only more difficult, but it's also much less profitable. Once you start trading penny stocks you will never want to trade anything else.
What if I am outside the USA? Can I still trade penny stocks and receive your recommendations? Yes you can! As long as you have access to the Internet you can be anywhere in the world and trade stocks.
But aren't we still in the middle of a recession? This seems like the worst time to invest in the stock market. Excellent question and the answer might surprise you. It's been my experience that a recession is the absolute BEST time to invest in penny stocks. Some of my biggest gainers in the last year or so have come during a time when the big indexes were following a downward trend. I know that sounds crazy but it's the truth! A recession in the "big" stock indexes is a positive factor in the Micro penny stock market due to the simple fact that when the big indexes aren't doing well, many investors take a break from large cap stocks to focus on the micro cap sector (more commonly known as Penny Stocks). Large cap stocks have a difficult time correcting from a negative trend in the overall market condition, while micro-cap stocks (penny stocks) are much more independent of overall market conditions. This brings the "big guns" with fat wallets into the microcap market, which means more liquidity in the micro cap sector. More liquidity = bigger gains for micro penny stock traders. So stop being negative about a struggling economy! A struggling economy is going to mean big gains for Penny Stock traders. I personally believe that the current economic conditions are going to show us bigger gains with penny stocks than we've ever seen before! There couldn't be a better time to invest in penny stocks than right now!