What Is A Penny Stock And How Can You Make Money Buying Penny Stocks?

A penny stock is a common stock that trades over the counter and has a share price of less than $5 per share. Typically, these stocks trade via electronic quotation services such as the OTC Bulletin Board or the Pink Sheets. By their vary nature, penny stocks are risky investments.

Most penny stocks are penny stocks because they deserve to be valued so lowly. These stocks are not good investment vehicle and are not likely to ever become good investment vehicles. Trying to make money in penny stocks is a difficult proposition.

It requires a level of expertise. Even so, there are many opportunities to books eye popping profits in penny stock trades for the savvy trader. In order for you to make consistent profits in the penny stock markets, you will need to be either a superior trader or have a superior trading system.

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