To gain from the investments in Penny Stocks, which in itself is a very risky investment option, you should be very careful about what to pick and what to avoid. Penny Stocks which boasts of converting small resources into big fortunes are first and foremost those publicly traded stocks that are presently trading under $5 per share. They attract both the traders as well as long term investors because of the small amount of capital vital to make substantial gains.
- Most of the Penny Stocks are traded on NASDAQ, Pink Sheets or on the Over the Counter Bulletin boards. how to buy penny stocks.However, the Penny Stock companies should not be vigilant inferior in any sense to those traded on major exchanges. In fact, many of them have better growth rates than some of the NYSE stocks and promise handsome returns on petty investments. Yet, you need to do your training and gain knowledge about these companies to profit from them. Penny Stock picking sites and communication boards often assist traders in judgment rising companies but getting intolerant merely by the feeling created by these sites and getting entangled into the hype generated by the phone salesmen or expert advocate hired by some companies for this job specifically, can lead to dreadful penalty.