Tag Archive | "where to trade penny stocks"

Do You Know Where to Trade Penny Stocks?


Where To Trade Penny Stocks

Do You Know Where to Trade Penny Stocks?

Without knowing where to trade penny stocks, all of your enthusiasm about them will have no effect. It is not enough to acquire good investment skills and knowledge about the equities for sale on the major stock exchanges. Trading penny stocks is a whole new endeavor with different skill requirements and a different set of requisite knowledge. One of the most critical pieces of information that you need regards where to trade penny stocks.

Learning About Where to Trade Penny Stocks

For the most part, you cannot find penny stocks on the New York Stock Exchange, the NASDAQ or any of the other well-known stock exchanges around the world. The companies that issue penny stocks have not filed the proper paperwork with the SEC and are not eligible for listing on these exchanges. They fail to file for many reasons. Often, they cannot demonstrate a certain level of financial health.

With regards to where to trade penny stocks, you will mostly find these penny shares in the over-the-counter (OTC) market. This market is open and available to everyone. However, investors bear more of the responsibility for self-protection in this financial environment. For example, there is no oversight to protect you from fraud on the OTC market. Furthermore, the liquidity of your investments is in doubt because each seller must find a buyer on his or her own.

You can still find brokers that know where to trade penny stocks to help you with these stock purchases. These online brokers offer differing rates. Some of them offer free trades as well. Knowing who can trade penny stocks efficiently is just as important as knowing where to trade penny stocks.

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Posted in Hot Penny Stocks, Stock TipsComments Off on Do You Know Where to Trade Penny Stocks?

Tips on Where to Trade Penny Stocks


Where To Trade Penny Stocks

Do You Know Where to Trade Penny Stocks?

Understanding where to trade penny stocks is one of the first steps toward success in this business. There are essentially two elements that you need to consider. First is the actual location in which you will trade penny stocks. The next is the broker through whom you will make your trades.

You cannot trade penny stocks on the regular stock exchanges. For the most part, these companies have not filed with the Securities and Exchange Commission (SEC) and are not under that body’s oversight. This means that you must look for these stocks in the over-the-counter (OTC) market. People also refer to these as pink sheet stocks.

It is important to understand that the OTC market does not provide any guarantees. When you trade on a major stock exchange, the SEC or another regulatory body essentially protects you against certain forms of fraud. They do not prevent you from losing money in a bad investment but they do make sure that you get the stocks for which you pay. In the OTC market, however, you are on your own and must use your wits to protect yourself from fraudulent traders.

Where to Trade Penny Stocks: a Warning about Penny Stock Brokers

Not every broker is willing to let its clients participate in penny stock trading. If you want to get into this type of investing, then you will have to find a broker who permits these trades. Carefully review the policies of a broker before using it to trade these stocks. Some of them charge high fees for each trade and these can significantly diminish returns. With a little experience, you will learn where to trade penny stocks and earn the most profits.

Stay up to date on where to trade penny stocks by getting on our FREE eMail list!

Posted in Stock TipsComments Off on Tips on Where to Trade Penny Stocks

Know Where To Trade Penny Stocks


Where to Trade Penny Stocks

Where To Trade Penny StocksFor those who want to know where to trade penny stocks, the answer is literally all around you. Penny stocks are found in three basic locations. These are the various small regional exchanges, the over the counter listings, and the proprietary accumulation of data known as the Pink Sheets.

 Finding Where To Trade Penny Stocks

•             Small regional stock exchanges have lower listing requirements than the larger organizations. As a result, penny stocks can sometimes be found on trading floors such as the Toronto or Chicago Stock Exchanges. While technically penny stocks, many of the companies that gain access to these trading platforms are rising stars in the penny stock world, and they are closer to attaining legitimacy than those who are unable or unwilling to cross the regulatory threshold inherent in gaining access to a regular stock exchange.

•             Most penny stocks are found on the so-called over-the-counter, or OTC, market. These are also known as unlisted stocks due to the fact that they have no home exchange to call their own. OTC stocks are transacted directly from one dealer to another in a process not unlike buying an item on eBay. A stock is listed for sale at a certain price known as the Ask. In turn, someone responds with a Bid price that is usually lower than the Ask. This is known as the Bid-Ask spread. When the two parties can agree on a mutually acceptable price, the sale takes place.

•             The famous Pink Sheets are stocks listed on a proprietary quotation service that assembles the Bid and Ask data in a single collection of data that allows the trader to examine and compare numerous stocks without needing to go to the trouble of hunting out data in multiple locations.

Knowing where to trade penny stocks is important, but so is knowing the risks of a particular stock.

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