How to Get Started With Penny Stocks?

There is a recent hype about penny shares in the stock market and many newbies are entering into this field because of its lucrative scope. After watching movies like the “Wolf of Wall Street” anyone can get excited to trade in the stocks and try out their luck to make substantial wealth in a short period of time. These mini stocks are mostly mentioned on lists such as OTCBB and Pink Sheets which comprise a small percentage of the entire market. Due to high fluctuation in the market you can expect make a profit of up to 100% overnight and a loss of the same magnitude if you aren’t lucky enough.

It is not an easy task to find an official quotation of a potential penny stock you are planning to purchase and you would have to take risk in order to gain a high return on investment on the entire deal. During the time period when low liquidity has affected the market it is always better to make your investment plan carefully constructed so that you don’t make any mistakes. Timothy Sykes, penny stock trader is considered an inspirational personality for newcomers in this field and you can get relevant information about him on the webpage now.

Beware of the “pump and dump” scams that are prevalent in this market and people with lack of knowledge can easily fall into this trap. Scammers try their best to demand high prices for their large quantity of stocks that have no net worth in the market. As soon as they get the highest bid for their low quality socks they dump it off and look for another target. Organizations with positive analyst feedback are a better option to start with, so that you can get quick results.

Spread the love