By Paul Fortson
Penny stock picks are establishments or companies you invest in for shares of under $5. Pink Sheets and Over The Counter Bulletin Board stocks are the two kinds of penny stocks you will deal with. The major difference between the two is that OTCBB stocks are obliged to file with the SEC and pink sheets stocks are not. Some investors avoid trading pink sheets, however, doing so also closes doors to bigger opportunities.
Take note that trading in the pink sheets and OTCBB is not always for everyone. Usually the stocks have a considerable spread between the bid and ask. Furthermore, there are many businesses that are not of value at all and will attempt to show off as successful businesses while diluting their shares. Another concern about stock picks is fraudulent schemes where investors or those who work for the company promote and create a positive picture in public avenues such as chat rooms and online forums. Once you start becoming more familiar with the market, you can easily tell when someone is generating unrealistic statements how a particular business is doing.
A bid is what a trader is willing to purchase a stock for and the ask is what a trader will sell the stock for. Once you've found a share that you want to buy, you raise the price and discover that there is a 30 percent difference between the bid and ask price. Looking for spreads of 30 percent or more is widespread in these markets. If the stock is thinly traded with a large spread, it is often ideal to purchase on the bid, or a small portion over the bid. If the stock is progressing fast due to an announcement or the news, you will likely be obliged to purchase at the ask. When you put your order to purchase the bid or a bit over, it could take a considerable amount of time to get filled. In any case, perseverance is required.
You might know by now that working with penny stock picks are seen as a highly risky investment. Stocks are some of the most volatile and manipulated type of investment in the stock market. Some businesses often hold no track record of stable financial performance. Moreover, The stocks are usually bloated up or exaggerated by scam artists. But while many choose to avoid penny stocks altogether, one should also realize that these are high risk, high reward shares. If you are aware of the risks, well-informed and practicing due diligence, the rewards can be astounding.
Penny stock investing can be a good venture if you know where to invest your money on. Check out the hottest penny stock list online, update yourself with the best penny stocks picks of the day, and start building your penny stock fortune now.
http://www.pennystocklist.org/
Take note that trading in the pink sheets and OTCBB is not always for everyone. Usually the stocks have a considerable spread between the bid and ask. Furthermore, there are many businesses that are not of value at all and will attempt to show off as successful businesses while diluting their shares. Another concern about stock picks is fraudulent schemes where investors or those who work for the company promote and create a positive picture in public avenues such as chat rooms and online forums. Once you start becoming more familiar with the market, you can easily tell when someone is generating unrealistic statements how a particular business is doing.
A bid is what a trader is willing to purchase a stock for and the ask is what a trader will sell the stock for. Once you've found a share that you want to buy, you raise the price and discover that there is a 30 percent difference between the bid and ask price. Looking for spreads of 30 percent or more is widespread in these markets. If the stock is thinly traded with a large spread, it is often ideal to purchase on the bid, or a small portion over the bid. If the stock is progressing fast due to an announcement or the news, you will likely be obliged to purchase at the ask. When you put your order to purchase the bid or a bit over, it could take a considerable amount of time to get filled. In any case, perseverance is required.
You might know by now that working with penny stock picks are seen as a highly risky investment. Stocks are some of the most volatile and manipulated type of investment in the stock market. Some businesses often hold no track record of stable financial performance. Moreover, The stocks are usually bloated up or exaggerated by scam artists. But while many choose to avoid penny stocks altogether, one should also realize that these are high risk, high reward shares. If you are aware of the risks, well-informed and practicing due diligence, the rewards can be astounding.
Penny stock investing can be a good venture if you know where to invest your money on. Check out the hottest penny stock list online, update yourself with the best penny stocks picks of the day, and start building your penny stock fortune now.
http://www.pennystocklist.org/
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