Penny stocks explained

Published on July 5, 2022

Popular updated videos top searched penny Stock Investing, Penny Stocks, Best Penny, and What Does Penny Stocks Mean, Penny stocks explained.

What is the first thing that jumps to mind when you hear the words “penny stock”? Get rich quick! Opportunity! Excitement! Investing in the next Big Thing! Handle with care! Danger! Let’s take a look at the optimistic view of penny stocks, let’s take a look at the pessimistic view of #pennystocks, and show you how to avoid being the sucker in penny stock trading.

00:00 Introduction to penny stocks
00:27 Penny stock gains and losses
01:29 How penny stock trading works
03:06 Pump and dump
07:03 Penny stock short selling
08:23 SEC charges on pump and dump
09:22 Penny stock market capitalization
11:08 Penny stock manipulation

Penny stock upside. Here’s a penny stock currently trading at only 4 cents per share. If it goes up by just one penny, which could happen any day now, you’re looking at a 25% gain. And once it hits 10 cents, you’re up 150%. How does a 150% return on your money sound to you? Yeah, that DOES sound great! And 4 cents per share is pretty affordable, right? What a penny stock sales pitch doesn’t mention, or mentions only in passing, is that there is also huge downside potential to this penny stock. If it goes down by just one penny, you’re looking at a 33% loss. And once the penny stock hits 1 cent, you’re down 75% from the 4 cents you started at. Penny stocks are a risky business. Why would people focus so much on the upside potential? Well, there’s a lot of money to be made in penny stocks, but not necessarily for you as an investor!

A great way to learn how penny stock trading works, is to watch the movie “The Wolf of Wall Street”. Jordan Belfort and his team of brokers are selling penny stocks at 50% commission, and they soon find even more ways to make lots of money. Like manipulating share prices in an IPO, but that’s a different story:

The main purpose of this video on penny stocks is to teach you how not to be a sucker. It is important to understand how an illegal “pump and dump” scheme works, to avoid getting suckered into it. Here’s a typical penny stock share price graph. Usually trading at, you guessed it right, a few pennies. Here’s what “pump-and-dumpers” do: step 1 they buy shares of very low-priced, thinly traded stocks, step 2 they spread false or misleading information to pump up the price (or pay somebody else to do this for them, to create a smokescreen around their identity). There’s no guarantee for a “pump and dumper” that his misleading information gets picked up and spread around social media and chatrooms. If it doesn’t, he just writes another piece of misleading information and hopes that that one will work. If it does work, then they go to step 3: they dump the shares once the price peaks. Big gains for the “pump-and-dumpers” (buy low and sell high, with an illegal high that you created yourself), big losses for unsuspecting investors that fell into the trap.

You can learn a lot from actual cases that the Securities and Exchange Commission details on its website, in a section called “spotlight on microcap fraud”. This page has news updates on the SEC filing charges, so you can find out who is involved in these and avoid doing business with them, as well as learn general lessons of how this fraudulent activity works. An example that the SEC gives of the effects of penny stock manipulation is “As alleged in our complaints, elderly and unsophisticated investors have lost millions of dollars as a result of these boiler room schemes.” There are real people losing real money here. The SEC also provides a very useful list of potential red flags that help you detect possible trouble when you do the right research prior to making an investment decision!

Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!

What Does Penny Stocks Mean

What Does Penny Stocks Mean, Penny stocks explained.

Penny Stocks: Why They Are So Much More Lucrative Than Other Stocks

For instance, Canadian penny stocks are open for USA homeowners too. The Best Penny Stocks to purchase are those which are selected carefully. Get Cent Pump Finder today and see your earnings zoom.

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Penny Stock Investment Tips

There are many sites that you can check out to acquire the needed details. You can trade forex with signals in addition to a robotic. The broker’s function is help the traders perform the orders they desire to.

Initially, the vast majority of them just aren’t that well known. They are not family names so investors don’t immediately consider them or seek them out for more research.

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Don’t engage in after hours trading. The stock exchange runs from 9:30 AM to 4:00 PM EST. These are the official trading hours when the majority of the huge market gamers are actively trading. This implies the liquidity of the stocks is at its highest. During the last years, after-hours trading was introduced to extend the profit making opportunities even after the regular trading hours.

This product is a newsletter that offers you stock picks to buy. The creator of that newsletter Michael Cohen utilizes a stock trading robotic called Marl. Marl will send you Penny Stocks Trading through e-mail.

After trading for some time, stocks tend to have a pattern and it is this pattern that traders look for before they seal the deal. These patterns can be kept track of online as they occur and financiers can await just the ideal moment to make their sale or purchase. Possibilities of it making earnings without any change in pattern are unlikely if a specific company has been making losses for a week.

Search for business that remain in demand. There are more quickly found in the tech sector. If a company has actually established a brand-new product it is obvious that its stocks are heading up really quickly.

You make an educated guess about the future potential customers of the movie production business. As a trader ends up being familiar with stock trading, she or he ought to create a set of guidelines.

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