New videos top searched penny Stock Pick Service, Small Cap Stock Picks, and Does Penny Stocks Work, Penny stocks explained.
What is the first thing that jumps to mind when you hear the words “penny stock”? Get rich quick! Opportunity! Excitement! Investing in the next Big Thing! Handle with care! Danger! Let’s take a look at the optimistic view of penny stocks, let’s take a look at the pessimistic view of #pennystocks, and show you how to avoid being the sucker in penny stock trading.
00:00 Introduction to penny stocks
00:27 Penny stock gains and losses
01:29 How penny stock trading works
03:06 Pump and dump
07:03 Penny stock short selling
08:23 SEC charges on pump and dump
09:22 Penny stock market capitalization
11:08 Penny stock manipulation
Penny stock upside. Here’s a penny stock currently trading at only 4 cents per share. If it goes up by just one penny, which could happen any day now, you’re looking at a 25% gain. And once it hits 10 cents, you’re up 150%. How does a 150% return on your money sound to you? Yeah, that DOES sound great! And 4 cents per share is pretty affordable, right? What a penny stock sales pitch doesn’t mention, or mentions only in passing, is that there is also huge downside potential to this penny stock. If it goes down by just one penny, you’re looking at a 33% loss. And once the penny stock hits 1 cent, you’re down 75% from the 4 cents you started at. Penny stocks are a risky business. Why would people focus so much on the upside potential? Well, there’s a lot of money to be made in penny stocks, but not necessarily for you as an investor!
A great way to learn how penny stock trading works, is to watch the movie “The Wolf of Wall Street”. Jordan Belfort and his team of brokers are selling penny stocks at 50% commission, and they soon find even more ways to make lots of money. Like manipulating share prices in an IPO, but that’s a different story: https://www.youtube.com/watch?v=4t62BEH9Ajs
The main purpose of this video on penny stocks is to teach you how not to be a sucker. It is important to understand how an illegal “pump and dump” scheme works, to avoid getting suckered into it. Here’s a typical penny stock share price graph. Usually trading at, you guessed it right, a few pennies. Here’s what “pump-and-dumpers” do: step 1 they buy shares of very low-priced, thinly traded stocks, step 2 they spread false or misleading information to pump up the price (or pay somebody else to do this for them, to create a smokescreen around their identity). There’s no guarantee for a “pump and dumper” that his misleading information gets picked up and spread around social media and chatrooms. If it doesn’t, he just writes another piece of misleading information and hopes that that one will work. If it does work, then they go to step 3: they dump the shares once the price peaks. Big gains for the “pump-and-dumpers” (buy low and sell high, with an illegal high that you created yourself), big losses for unsuspecting investors that fell into the trap.
You can learn a lot from actual cases that the Securities and Exchange Commission details on its website, in a section called “spotlight on microcap fraud”. This page has news updates on the SEC filing charges, so you can find out who is involved in these and avoid doing business with them, as well as learn general lessons of how this fraudulent activity works. An example that the SEC gives of the effects of penny stock manipulation is “As alleged in our complaints, elderly and unsophisticated investors have lost millions of dollars as a result of these boiler room schemes.” There are real people losing real money here. The SEC also provides a very useful list of potential red flags that help you detect possible trouble when you do the right research prior to making an investment decision!
Philip de Vroe (The Finance Storyteller) aims to make strategy, finance and leadership enjoyable and easier to understand. Learn the business and accounting vocabulary to join the conversation with your CEO at your company. Understand how financial statements work in order to make better #investing decisions. Philip delivers #financetraining in various formats: YouTube videos, classroom sessions, webinars, and business simulations. Connect with me through Linked In!
Does Penny Stocks Work, Penny stocks explained.
The “Market Makers” Of Hot Cent Stocks
Penny Stocks Psychic has a taken a look at system, with over 3 years of analysis, at its heart. Analysts say that the board of directors identifies the life of the business. You have to do a lot of personal research.
Penny stocks explained, Enjoy new updated videos about Does Penny Stocks Work.
How To Inform In Between A Loser And A Hot Penny Stock
Micro cap stocks by definition trade under five dollars. Are you questioning how to make money with penny stocks? Purchasing Penny Stocks can certainly increase earnings. That’s tempting and absolutely inexpensive to buy.
The very best penny stocks have made some people ear millions, however such scenario is not common amongst all the investors. The marketplace of stock and trading constantly include some threat and it is important that you learn methods on how to minimize such risks. Specifically, with the cents, the amount of danger is much bigger than other kinds of financial investments. For that reason, it is crucial that you have a look at some important information on such hot cent stocks. Here, you will find some suggestions that will help you to make safe investments.
The first thing you can do that 95% of cent stock investors neglect is trends. Trends are any pattern you can discover in the history of a stock price. You will likely see a pattern in it’s price if you view the stock price over the last few years. When the cost of the stock is at a low point and at it’s peak, this allows you to know. With that information you can buy at the dip and sell at the peak with terrific ease. This strategy does not work 100% of the time however I have had fantastic success with it. It is an excellent way to discover the Best Penny Stocks to invest in.
When it pertains to purchasing Penny Stocks it’s all about momentum. And the best builder of momentum on the penny stock exchange is Business Promo and Marketing Campaigns.
3)A Lot Of Picks. Companies that recommend lots of picks a week are worthless. The average person can not purchase that numerous stocks. Plus, some companies will never show the losers as they never appear as a sell. Rather they simply let them go on as open trades permanently or till the business gets de-listed.
Expect you are a motion picture fan.You do the research and discover a movie production company in the procedure of making a film that has a great cast and a great lovestory filmed in spain. You Penny Stocks Trading know the importance of good movie evaluations and are sure that this motion picture is going to get good reviews.
Cent Stocks often have dishonest company practices. They may release more stock for little or no factor to consider=”dilution.” They may engage in pump and dump promotions. They might release deceptive or inflated news release. They might reverse split your stock into oblivion.
Nevertheless if you have little extra cash and are in a difficult monetary position then you are probably much better off investing your cash in more recognized stocks.
They are not exchanged through the NASDAQ and the New York Stock Exchange which are big stock market gamers. Contrary to common belief, Penny Stocks can trade on any of the exchanges. If you can manage one – go on and all the best.
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