A Penny For Your Thought
How about "a penny for your stock"? Most investors associate penny stocks as red flags risks that spell "DANGER". What then is penny stock? Penny shares are defined as small companies' shares that normally cost less than $5 per share. Generally, investors are afraid of "burning their hands" with penny stocks investments, as they are low price shares that boost small market's values since these shares lack liquidity.
However, high volatility can equate to huge profits too, if trading strategies are skilfully masterminded. Hence, when an investor holds a penny stock he must be quick witted and prompt in his decision. In penny stock trading, the age old idiom of "time and tide waits for no man" aptly applies. In other words, he must "buy and sell" very quickly. Moreover, penny stocks are much more accessible to investors with limited capital because they are cheap. In fact many newbies start their trading journeys with penny stocks.
After having summarised all the pros of penny stock trading, we can now focus on its weaknesses:
One vital point to note is that not all penny stocks are listed over major stock exchanges. They may be traded over the counter bulletin board (OTC). As such these companies do not have to comply to the strict regulations set by major exchanges. This is hazardous because seasoned trickster can manipulate and falsify the company's statements to lure those innocent investors. Commonly, such an enterprise lacks historical data for potential investors to make wise choices.
It is not easy to locate undervalued shares and examine closely their positive points. One example of good value penny stock to focus on is $Metamaterial Exchangeco Inc(MMAX.CA$
Basically, trading on penny stocks are not suitable if an investor does not adopt an attitude of trading with great diligence and only risk what he can afford to lose. Otherwise, he can become "penny wise, pound foolish". They are certainly red flags for long term investments.
$ESSEX BIO-TECH(01061.HK$
$Alpha Metaverse Technologies Inc(ALPA.CA$
$Camber Energy(CEI.US$
$Color Star Technology(CSCW.US$
$Metamaterial Exchangeco Inc(MMAX.CA$
$Farmmi(FAMI.US$
However, high volatility can equate to huge profits too, if trading strategies are skilfully masterminded. Hence, when an investor holds a penny stock he must be quick witted and prompt in his decision. In penny stock trading, the age old idiom of "time and tide waits for no man" aptly applies. In other words, he must "buy and sell" very quickly. Moreover, penny stocks are much more accessible to investors with limited capital because they are cheap. In fact many newbies start their trading journeys with penny stocks.
After having summarised all the pros of penny stock trading, we can now focus on its weaknesses:
One vital point to note is that not all penny stocks are listed over major stock exchanges. They may be traded over the counter bulletin board (OTC). As such these companies do not have to comply to the strict regulations set by major exchanges. This is hazardous because seasoned trickster can manipulate and falsify the company's statements to lure those innocent investors. Commonly, such an enterprise lacks historical data for potential investors to make wise choices.
It is not easy to locate undervalued shares and examine closely their positive points. One example of good value penny stock to focus on is $Metamaterial Exchangeco Inc(MMAX.CA$
Basically, trading on penny stocks are not suitable if an investor does not adopt an attitude of trading with great diligence and only risk what he can afford to lose. Otherwise, he can become "penny wise, pound foolish". They are certainly red flags for long term investments.
$ESSEX BIO-TECH(01061.HK$
$Alpha Metaverse Technologies Inc(ALPA.CA$
$Camber Energy(CEI.US$
$Color Star Technology(CSCW.US$
$Metamaterial Exchangeco Inc(MMAX.CA$
$Farmmi(FAMI.US$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Syuee : Penny stocks are the realm of dreams and nightmares for speculators.
HopeAlways : Penny stocks are speculative in nature, and tend to more volatile; more suited for day trading and those who can stomach higher risks.
HuatEver : I started my trading journey with Penny Storks, well guided by a sharp witted mentor. This “1st pot of gold” has got me “hooked” on to Moomoo’s trading platform.
HuatLadyOP HuatEver: A very auspicious beginning to add to your trading portfolio.
HuatLadyOP HopeAlways: I reckon you have blacklisted penny stocks trading as red flags.
101895850 : too much uncertainty with the China govt. Big fund will find it hard to come in. just when you thought everything is over, they come out with new restriction etc. it is not investable already .