Buying penny stocks in the winter may be the best approach. Penny stocks are speculative investments and most seem to go up when speculative buyers come in. Usually November and December are great times to buy penny stocks. New investors come in with New Year resolutions with hopes of becoming wealthy from penny stocks. This buying pressure usually increases the share price from the months of January to April.
Buying penny stock is an investment that can have a high reward in spite of being a high risk, it is a matter of course that must be careful more when I usually treat stocks. Because it is not listed on the Stock Exchange like NASDAQ in the well-known stock market, the penny stock often seems to be fraudulent stocks. On the other hand, the penny stock has a very speculative property, and a splendid return is provided if it is right and invests it.
Why does it become the penny stock?
If you only read the name and wanted to define the characteristic of the penny stock. Penny Stocks are less than 1 dollar and, contrary to a normal stock, can define it as a cheap stock to be able to buy. This definition is not correct though, Because by definition a stock can be considered a penny stock as long as it is trading under $5 a share.
There is the reason why a penny stock is a penny stock. The company listing a penny stock is destined to usually go bankrupt and is high leverage. Therefore, I come from behind from 1 dollar to 1.50 dollars during several hours if movement is unlucky. Although it is not made a deal in a big market, please note a tradable thing in OTC (OTCBB) of pink sheet and FINRA. However, in the case of either, the business should be cautious.
Can a penny stock have investment value?
When “there is not even that I worry about the stock prices that are lower than one meal.” For the agnostic without the imagination, I may think of the penny stock to be it like a waste of time, but an eccentric return is provided if I invest it in a good penny stock.
Please think in this way. It will be said that I invested it in a penny stock of stock prices 1 dollar called $XVR. I purchased this stock for 5,000 dollars. After checking market price once again one week later, I got nervous to 2 dollars from 1 dollar. In only one week, investment doubles.
Of course it is not like that all the time. If the prediction of the penny stock is simpler, many people will invest it. In the first place the property of such a company must be critical posture on investing it if I think. However, it is not impossible to achieve a splendid return in this type of stock so that the example like the point proves it.
Method to obtain a maximum profit from penny stock investment
―I check the results of the company: Like a stock, as for the investment, it is usually failed in success depending on the administration running a penny stock company. The simplest method to check a penny stock in detail is to study the administration and the history of the company.
―I know when you sell: It is reverse to most assets, and the penny stock is not suitable for long-term possession. The whole penny stock market is designed for short-term transaction. Therefore, please grasp a right sale timing by all means.
―I watch fluidity and volume of business anytime: Short-term transaction is the liver of the penny stock. That means, the forthcoming best point of view is fluidity next. If though there is much demand, not assets without supply, invest it in a thing with the fluidity; of the efficiency say, and come to be able to trade it.
―I make the upper limit for investment: The overinvestment becomes the fatal injury for many investors anytime, but even a penny stock is similar. I may be excited at the possibility that a fund of 20,000 dollars doubles overnight, but it can easily become zero if not careful. I perform diversified investments of the amount of moderate fund for a different brand and make a preliminary investigation, and let’s minimize a loss. As well as the case of the stock, please usually learn that you invest even a penny stock in various stocks.