Ep 94: Trading Penny Stocks – Theory, Advantages, & Risks

★ SUMMARY ★
I’ll be talking about trading penny stocks in the stock market, we’ll talk about some of the theory, the advantages and some of the risks that go along with trading penny stocks.

We’ll spend about 30 to 40 minutes as usual on this lesson and I’ll try to condense and compress as much knowledge and information about penny stocks in that time frame that I have a load of.

It’s not going to give you everything to trading penny stocks in the world, but it’ll definitely give you some insight to trading some of the smaller companies, the penny stocks, why I personally don’t trade penny stocks, why I prefer to trade other stocks, but I understand that there’s a demand for trading penny stocks, a demand for that interest, that information of how to trade penny stocks, at least from my perspective.

This video should give you some more of that insight, because for some people it’s a great way to do their trading, and for other people you might want to focus on other things, so whether you’re interested in trading penny stocks or not, this video should still give you some insight to the market as a whole and looking at some other factors when evaluating stocks and looking at stocks, trading stocks, getting in, getting out of positions, because the theory and the concepts are very similar, so I do want to spend a little more time on penny stocks specifically, simply because I don’t spend that much time on them, and I know that there’s demand for that information and this video should open up your eyes a little more to some of the lower priced stocks.

Posted at: http://tradersfly.com/2016/07/ep-94-trading-penny-stocks-theory-advantages-risks/

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TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

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17 COMMENTS

  1. IS there a predictor for the length of pump and dumps? Can they turn into a month or two kind of thing if the market cooperates with the movement?

    In other words, if a pump an dump is ongoing and it started as a 1 day pump but seems to have turned into something else, something longer term. Does that happen much?

    I have been trading penny stocks for a couple of months, and for the most part they follow indicators like other stocks, just on a much faster timeframe it seems.

  2. Dumb question, so if I have "x" amount of share in something and want to sell it because it went up 20% in a day trade. Will my shares be bought up instantly or you mentioned around 13 minute marker that they could sit there and no one will buy them? I am talking shares around $3-6, not a few cents. I understand volume but if I hit sell, do they sell instantly?

  3. I remember buying 50 shares of a cheap stock for Unwired Planet. It was worth like 50 cents each and I sold out at $1.05 to make $7 since I thought that was as good as it would get. A week later, I found that the company won a lawsuit over patents, so the stock jumped to around $14 a share so I missed out on a major gain.

  4. If their natural movement is down, can't you just short them on the pop and get somewhat consistent results if you stay clear from sudden surges?

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