| 1. Penny stocks offer an opportunity to make big gains | | | | stocks. The lower overhead of an online site will |
| in today’s volatile market. Those looking to | | | | keep the costs of trading penny stocks more |
| cash in need to have perseverance, and some daily | | | | affordable. Many sites will offer complimentary |
| insight on how the market is affected. Penny stocks | | | | trades upon signing up, as well as convenient tools that |
| are not traded in the stock exchange, but rather are | | | | assist in real time trading. Reputable sites will offer |
| over the counter, making the transactions easy to | | | | web based or software based trading in real time for |
| access. There are many online sites to trade penny | | | | easier, faster transactions. The more advance |
| stocks available. | | | | technology a site employs, the better opportunity for |
| Online brokers are a great way to indulge in penny | | | | success. |
| stocks, as they will offer discounted commissions and | | | | An investor who trades penny stocks can watch the |
| lower fees. Many do not require minimums to trade | | | | market movement via “pink sheets” or other |
| penny stocks. A penny stock will trade for $5.00 or | | | | newsletters showing the accumulation/distribution |
| less, with the potential to grow as much as 300% or | | | | ratings of a company. Obviously the more attention |
| even more in a day. Many of these companies are | | | | or activity a stock shows, the more the price |
| undiscovered or undervalued, and are just waiting to | | | | increases. Online penny trading allows the trader the |
| increase in price with some activity. | | | | ability to buy and sell quickly to capitalize on the |
| Many sites offer a free trial to let a trader get | | | | stock’s potential. Penny stocks are the most |
| comfortable with the software or technology | | | | volatile forms of investment, and are great for risk |
| employed by the site. A day trader should also be | | | | takers. It is important to be familiar with this part of |
| aware of the fees involved with a site’s penny | | | | the market, as it can have big payoffs. |