Equities & Stocks: Penny Stock Trading

Sunday, 13 January 2013

Penny Stock Trading

Penny Stock Trading Details

If you've ever researched stocks, you've almost certainly come across a "pump and dump" scheme.
It works like this...
Some person or some group either acquires shares of a company, or is paid to promote a penny stock by someone who already owns shares.
The idea is to give publicity to the stock, thereby attracting other investors to buy.
This is the pump.
If the pump is effective, the amount of new buyers attracted to stock makes the share price start to rise, because there are more buyers than sellers.

Penny Stock Trading

Saturday, 12 January 2013

Penny Stock Trading

Penny Stock Trading Details

The allure of penny stocks is simple: They don’t cost much money and promise big profits. But trading penny stocks is also a good way to lose money.
Sure, it’s possible to profit when you understand the game, but the odds are against you when you don’t. And worse: manipulators and scammers often run the penny-stock game.
For investors who can’t afford shares of Google or Apple, the potential gains from trades like this are too good to pass up. So penny-stock trading thrives. With a relatively small in
vestment you can make a nice return if — and this is a big if — the trade works out. For example, say you buy 10,000 shares of a $.30 stock for $3,000. If the stock reaches $1, you’ve made $7,000, doubling your money

Penny Stock Trading