Rainbow asked:
I am interested in trading penny stocks on-line. I noticed that some on-line brokers do not give you access to the OTC Bulletin Board Marketplace and some do. Which one has the lowest fees and easy to use because I am a beginner. Also, do you believe I can make cash trading penny stocks? I lately signed up for a mailing list known as the ox of wallstreet, they send me emails with penny stocks that are about to go up. I was skeptical at first, but when they suggested one of the stocks, I checked up on it the subsequent day and it went up 150% ! I know that these types of stocks are extremely risky, so I wanted to get a second opinion about this. Thanks.
November 24th, 2009 at 9:18 pm
Yes, you should access to the OTC bulletin board market. Investor can win by making research and finding a good broker and these can help the investor to earn money.
I am referring to these site
November 28th, 2009 at 5:18 am
When you invest/trade in penny stock you should never put up more than you can afford to loose and you should assume you will loose it all. Unlike regular securities, penny stocks usually do not let you use risk cutting procedures (options and/or stop orders) since most are not traded in a regulated market place.
They say when you buy securities you have a 50%-50% chance of making money, when you buy penny stocks you have a 50-50-90% chance, 50-50 chance of making money and a 90% chance of loosing money.
When buying penny stocks, like any other security investment, you never invest 100% of you investing capital. Penny stocks are fun to trade, but you should never count on them to be considered part of your primary investment objectives.
Most major brokerage firms do everything they can to discourage their customers from trading in penny stocks by charging higher commission percentages, transfer fees, safekeeping fees or activity fees.
All that said, here are some websites that you will find helpful
November 29th, 2009 at 9:33 pm
They are very risky and I lost a lot of money recently after making more then what I invested. I am still holding because I think that it will still go up.
I use scottrade and it costs me randomly between 7.00 to 11.00 per trade. I dont know exactly what makes up this number but I am used to it. I think it will be the same thing with many of the online stock brokers. I like scottrade and it’s simple to use.
December 2nd, 2009 at 10:37 am
I agree with “the old guy”. They are very risky and you should be skeptical. Wow! 150%. What a lucky guess they had. Do you really think they can read the future of the market. They may be able to predict once in a while but not 100% of the time. I would say your better off investing in some lower cost ($5-$20) stocks with good reputations. Good Luck!