Penny stocks are trading at a very low price and have very low market capitalization. These stocks are trading under Rs.10 in this category in India. These stocks have low liquidity and hence the price can be manipulated by buying a lot of shares. Penny Stocks Trading has the highest level of volatility which is resulting in a higher potential reward and a higher level of risk. Individuals invest in these penny stocks and used to lose money as their share price is highly variable. Generally, the penny stocks are investments in the small companies and present a high risk of loss. Below you can get how to trade and pick penny stocks
- Develop a penny stock Investing strategy
If you are a new investor moving to penny stocks, then you must support yourself for the high associated with the penny stocks. You can turn very high returns with the certain penny stocks. Penny stocks are very risky and they are not an advisable investment for the long-term savings plans.
- Research in penny stocks
While researching penny stocks look for the company data. Once you find a stock to interest in purchasing then research the company to determine whether it is likely to grow in an investment.
- Purchasing penny stocks
Once you made a decision on what company you want to purchase penny stocks then you need to register with a platform to make trades. There are many trading platforms like eTrade, Ameritrade, and others. All these platforms offer right of entry to penny stock trading.
Investing in penny stocks takes devotion and staying power. The main advantage of penny stocks is per share price is very low so there is no need for initial money to start investing. With the help of Online Broker Review, you can find the best brokerage or advisor for your investing needs.