Make Your Money Work Well in Lesser-Known Market Corners
So who this is for, and what you’re trying to do? You want to put small dollars to work without turning your screen into a slot machine. You’ve heard about fractional shares. You’ve heard about penny stocks. Put them together and you get fractional penny shares investing: a way to build diversified, low-dollar positions in sub-5-dollar names while keeping your risk per trade controlled. If
You’ve seen the breathless screenshots and the flashing tickers. A tiny stock surges 40% in an hour and it’s easy to imagine catching that wave. Thankfully, asking, “is day trading penny stocks profitable?” comes from a place of cautious curiosity, not hype. Let’s honor that. Table of Contents: The honest answer is that profit is possible on single trades, yet sustained profitability is rare; the
These days most people rely on search engines and the internet to do research. While this is a decent place to get some information, it doesn’t always provide the most complete or the most accurate information for everything — it really depends on your source and the subject matter. If you’re searching for accurate and detailed information about penny stock companies so you can make wise investments, it’s better to broaden your search beyond the internet, where there are too many sources of fraud and scams anyway. There are a few specific places you might want to reference before you put your money on the line.
One good place to check is with the SEC. If the company files with the SEC they are making an attempt to look legitimate. Along the same lines you may also want to check with your state regulator as well as the state regulator for the state in which the company is located. This is often the first place complaints about a company or stock are registered; some complaints never leave this state level, so you may find out more by going directly to the state office.
Is it really possible to make significant money buying and selling penny stocks?
Yes, it is possible. Is it likely? Well, that’s another question. Some people have earned significant money simply buying penny stocks low and selling them for a profit, but actually doing this isn’t as simple as it sounds.
Because these stocks are low value per share they are tempting for the beginning investor, but this is actually a complicated market that can be quite volatile. Even though the price per share is low, these stocks are generally traded in volume. This is how you make more money, but it also what makes them risky. Prices can go up or down quickly and as the price goes down you need to find a buyer if you want to sell your stock.
Buying penny stocks and selling them for a profit requires research. If you are willing to do the work and put in the time there is money to be made in this business. There are a few keys to success in this market.