Investing in penny stocks
The new year is approaching and after reviewing our alerts for the year, if anyone held onto these stocks, just about all of their mountainous profits would have been wiped away.
A famous phrase in the penny stock community is "don't marry them, trade them." And it is apparent that's what traders are doing. As you can look at any stock chart, when a stock traded for weighty gains, the sell-off was shortly after. Some stocks traded for hundreds of percentages for several days-even weeks, but the end results were all the same, heavy tankage.
Not all stocks alerted this year were listed as OTC, most were on NASDAQ and AMEX with millions of cash volume and still could not maintain it's gains. It's obvious that many people have learned to take profits because most know if they do not sell, others will. No one wants to be left holding the bag. Stocks that were once trading above $3.00 are now just below $1.00, some trading for as little as one penny.
Stocks trading under $5.00 are referred to as penny stocks, although many would assume it to be trading for cents and not dollars. Penny stocks are start-up companies with limited cash and resources; there are penny... Login To Read More