It isn't so much the price of the stock as where it is trading. You have a few major tiers where stocks trade: 1) NYSE, AMEX and NASDAQ. These are your regulated exchanges and the most safe companies to trade. It doesn't mean you won't still find a Chinese fraud lurking here or get blindsided by a bad company, but these are overall your safest picks. 2) OTCQX, OTCQB and OTCBB. The OTC is your Over The Counter marketplace. The requirements are not as stringent as a regulated exchange, but these companies are still required to file current information and there is a little better comfort level in trading them. 3) OTC Pink. These are your "Pink Sheets" stocks. Some of these companies are here because they got kicked off a major exchange and some are the ADRs (American Depositary Receipts) of a foreign company and they choose not to pay the higher fees to be on a major exchange. This is the wild west of stocks and manipulation is the norm. Don't fall for the hype and promotional material on these stocks. Best to stay away until you really have a grasp of how the markets work. 4) Grey Market. Yes, there is a tier even below the OTC Pink. The Grey Market implies that there isn't a single Market Maker sponsoring the stock so you do not have a Bid and Ask to give you a transparent execution. Customer orders are matched and liquidity is low and the spread is high. Current information on the company may be nonexistent. Stay away from these stocks! So you see, you may have a stock trading with a price of $20 on the OTC Pink that is under heavy promotion by manipulators and you should stay away and you can have a stock trading for fifty cents on the NYSE that is current in all their filings and is in a sector that is bottoming-out and prime for a recovery. The NYSE stock is your best bet. Where it trades is definitely more important than the arbitrary number of price per share (PPS). Good luck. Start safe with companies on a regulated exchange, trade what you know and don't forget to spread out the risk and diversify.
Very important for novices to stick to stocks trading on the reputable exchanges. And of course that in and of itself guarantees nothing.
I started with penny stocks and it paid off for me. That being said it's not the right avenue for everyone. There are so many factors that come into play that it can be overwhelming and then depressing when you lose all your money. I lost out on my second investment but the other four of my first five went ok. If you have some extra cash to play around with then you can try it if you do your research.
Thanks for the information on penny stocks. I to was thinking about trying them, I had did some research on them, and found that it is very risky business. Especially for someone like me, I have no clue about the stock market period. Glad I found this forum, I will be reading up on not only penny stocks. But the whole stock market itself.
Investment in penny stock is a risky investment. For a new investor with low investment, investment in penny stock is not desirable at all. A permanent unwillingness towards investment in stock market investment may be created from losing of money by investing in penny stock.
I think the best place to start is with cryptocurrencies. Low entry and you can make some okay money. It's also a safe place to learn about markets and market movement before you invest some serious dough. Penny stocks are a strange market that's more filled with scams than any other trading market. Cryptocurrencies are easy to get into and can teach you a lot about trading and the market itself. Good luck!
This might help. Penny stocks are terrible investments but they can be great stocks to trade. Meaning you take advantage of the crazy volatility to make quick gains or shorts. If you hold a penny stock (OTC) for any length of time it may hit its 52 week low and just stay there. The alternative is to do a scan and find the few penny stocks on the NASDAQ and watch those. These stocks represent real companies. So if you get stuck with a loser you have a chance that the stock can bounce back. You won't get that chance trading on the Pink Sheets. Gazoo
Low-estimated, little top stocks are known as penny stocks. In opposition to their name, penny stocks once in a while cost a penny. The SEC considers a penny stock to be basically anything under $5. Keeping in mind there are sub $5 stocks exchanging on enormous trades like NYSE and NASDAQ, most speculators don't think about these when requested that portray a penny stock. Like whatever other stock you would get, you can buy shares of a penny stock through your typical stockbroker - paying little mind to regardless of whether it's recorded on a noteworthy trade.
A penny stock is like trading outside of the major market exchanges at comparatively low prices and has a small market capitalization. These stocks are generally considered highly uncertain and involve high risk because of their lack of liquidity, small capitalization and limited following. It is more suitable for the investors with a high tolerance risk. binary option trading tips
