Penny stock investing and trading

By: Elton John
Sometimes, the names small cap, micro cap, nano caps, referspenny stock. Market capitalization is out of consideration in determining thestatus of penny stock. It is the share price, which is the main key factor thatdetermines the status of penny stock

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Penny Stock-A Risky Investment:

The technical investors observe a great risk in going forpenny stocks. Since many penny stock companies are fraud. The main motive ofthese companies is to sell shares and they are not inclined towards businessdevelopment.

However, the truth is that, penny stocks are not theconcept of those who do not want to take risk. It is for potential investors.Penny stock caters to a very risk business. Therefore, by following some tips,the investors can invest only money, which they can bear to lose.

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Why to stake in Penny Stock:

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No-doubt it is very risky, but it offers greatopportunities for the investors to pile a lot of money. If the investors knowtheir objectives then there is a possibility of winning some money in a shortperiod. For the Penny stock enthusiasts, good investment advice and right toolshelp to survive and make a lot of money.

Discover a Perfect Penny Stock: The investors need toinvestigate to find a perfect penny stock before they buy in. There arenumerous websites, which help the investor to list out the right penny stock.Try www.stocks-reporter.com

Below mentioned features, help investors to acquireessential information about a company prior to investigating in them.

???? Stock Structure: OS(Outstanding Stock and Float) and AS(Shares Authorized)

???? SEClisting

???? Transferagent transparency

???? TurnOver and Financial record

???? BusinessStructure

???? Valuationand Position of the Company

For instance, if the company maximizes the OS and closesto AS then it signifies no dilution in stocks. Following the transfer agent andinsiders of the company is a good strategy to know about the company.

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When to buy Penny Stocks:

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After finding the right penny stock, the investors have todecide the entry point and execute the stocks in an appropriate way.? Analyze the trading chart for a few days. Itoffers valuable information.

The message boards that analyze the chart and discusspenny stock trading help investor to plan for the execution of trade. Patienceis the dominant tip to execute the penny stock trade. Buying stocks at the BIDprice is a nice option.

When to sell Penny Stocks:

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?It is very personaland depends on different investors. Investor needs to implement their strategysoon after the execution of buying order. Mostly, it is good to sell 50% ofshares at around 25 % to 35 % PPS spike. Another 20% to 25 % rise in PPS thensell another

50 % of current stake and let the remaining as it is for awhile.

Usually, the exit strategy needs to be flexible and varywith momentum, volume and news. If the investors sell, ASK, 90 % of timeFind Article, itwill not harm the run.

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