Penny Stock Investing: Top Ten F.A.Q

Penny Stock Investing: Top Ten F.A.Q. As the editor of a Penny Stock newsletter, the ‘PINK SHEET PICKS’, I am asked all the time about how to begin Penny Stock investing. There’s a common misconception that starting a Penny Stock portfolio is difficult or involves loads of risk. Neither of these is really true. A Penny Stock brokerage account can be created in minutes online. While people can and do lose money occasionally, Penny Stock investing is inherently no more risky than any other stock investment. The following is an overview of the top ten F.A.Q.’s about Penny Stock investing from the subscribers to the ‘PINK SHEET PICKS’ newsletter. Each of these subjects has also been created as a video tutorial which can be accessed at free of charge. 1. What are Penny Stocks? By definition, Penny Stock are stocks that trade on the ‘over the counter’ markets, also known as the ‘PINKSHEETS.’ (hence the name of the ‘PINK SHEET PICKS’) The S.E.C. considers any stock that trades below $5 a share to be a Penny Stock. Also, any company with a market capitalization of under $50 million dollars is considered a Penny Stock. 2. How to buy Penny Stocks? Penny Stocks are purchased through a stock broker from the over the counter markets. Some of the most popular Penny Stock brokers include: Zecco, E-trade, Tradeking, etc. Setting up an account is a simple process that only takes a short amount of time. 3. How to find High Gains Penny Stocks? This is where professional advice comes in handy. Penny Stock selectors do this every day of the week. Your job is to find those that possess the acumen and accuracy to make money consistently. 4. What are the pitfalls to Penny Stock Investing? Penny Stocks have occasionally been connected to stock manipulation and outright fraud. That is why it is extremely important to personally research every stock prior to investing. 5. Where to conduct Penny Stock Research? Penny Stock message boards, forums, websites, and professional advice, are all good places to start. Beware of everything you find in a public forum though. This type of information lends itself to manipulation tactics. 6. What about Penny Stock Forums? Most forums are run by online brokers and some of the more prominent stock picking sites. You want to stick to the moderated forums that don’t allow spamming and touting to get more useful information. 7. Choosing a Penny Stock Broker? The most important aspects of choosing a broker are its fees and service. You first want to ensure that your trades are placed correctly and timely. Then, keep a close watch on the fees there are charging you to place orders. 8. What are all these fees? This is the most important aspect of Penny Stock investing other than picking the right stock itself! For example, if you made $50 profit on a trade, but have to pay $14 both (buy/sell) in commissions, now you really have only made $22! See how quickly the fees can eat up potential profits? 9. What are Penny Stock Options? Playing the options market in Penny Stocks is truly a professional level enterprise. This type of investing leverages the risks of stock movements against your gut feelings about the market’s direction. Professional advice here is a must unless you have a financial industry background. 10. Who can help do this? That one’s easy! and the ‘PINK SHEET PICKS’ newsletter is your source for information and advice on profitable Penny Stock investing. The ‘PINK SHEET PICKS’ newsletter is the fastest growing Penny Stock picker online. We’ll help you reach your investment goals today! You can access all 10 of these F.A.Q.’s as detailed video tutorials on our home page also. Visit: for more information on Penny Stock investing and sign up for our FREE STOCK SELECTIONS too! We look forward to hearing from you soon. Thanks, TJ Pennychase Editor, Pink Sheet Picks

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