On-Line Penny Stocks Trading [On-line Trading In Penny Worth Stocks]

Penny stock is often defined as stock that trades at a relatively low price, usually below $5.00, and market capitalization, which again is usually outside of the major market exchanges. These types of stocks generally depend highly on speculative and high risk trends because of their lack of liquidity, small capitalization, large bid-ask spreads, limited disclosure and following. Penny stock is usually traded over the counter through the OTCBB (Over The Counter Bulletin Board) and pink sheets. The pink sheets, as the name suggests, got their name from pink paper on which they are printed. To ease recognition for investors, the stock symbol in the market of the trading companies end with “PK”. The faint of heart cannot Invest and trade in penny stocks. Penny stocks is a hive plenty of risks and disappointments in the stock marketplace. But besides the risks and the downsides there are also sizable possible rewards to be gained, if one is willing to do the research required to separate the growth prospects of penny stocks from the majority that will be left by the wayside. Where it’s possible do your homework, stick to reliable sources of information, use proven investing and trading strategies, maintain a strict discipline in your trading, and have a high tolerance for the risks involved.