Red Flags to Watch For When Evaluating Penny Stocks

Penny stocks are risky, but that doesn’t mean you shouldn’t have any in your investment accounts. There are certain stock screens you can use to help weed out bad penny stocks. These tips should be used as part of your initial screening process along with other technical and fundamental screens to pick your list of acceptable penny stocks. Keep in mind these screens won’t be as useful once you have already invested in a stock, but they may save you some heartache upfront. Continue reading

OTC Market

Interpreting the OTC Market is a crucial component of discerning how to buy penny stocks. A majority of penny stocks aren’t listed on a stock market like NASDAQ or the NYSE but instead on the OTC market (or OTC securities market).

NASDAQ (National Association of Securities Dealers Automated Quotation) controls a little component of the over-the-counter market with the NASDAQ National Market (NNM), but this portion of the OTC Market doesn’t include penny stocks.

Pink OTC Markets, at one time called the National Quotation Bureau (NQB) and colloquially referred to as “Pink Sheets”, operates on the most active component of the OTC market. If you begin earnest and extended penny stock trading, you’ll at some point deal in Pink Sheets. Continue reading

Online Penny Stock Trading

Penny stock trading can be a fun business with great potential, but unfortunately there are a number of scams associated with niche, as well as penny stock fraud. Here we take a serious and professional look at online penny stock trading and aim to provide quality information on this specific market.

Many people get involved in trading penny stocks because they want a way to get rich quick. There is no easy way to get rich quick. There is money to be made in this market, but it doesn’t necessarily come easily. There is a learning curve, and there is plenty of risk.

Comparing penny stock brokers is one good place to start if you are serious about getting into this market. We’ll discuss various online brokers and the differences between the types of brokers. We also explain how to trade penny stocks as well as stock trading software.

This site provides a good look into penny stock trading, providing tips on what to do and advice of what to avoid. Continue reading