In the following article we will explain how to trade Penny Stocks, how to find the best Penny stocks and what opportunities and risks trading with Penny Stocks offers. Today we want to talk about the penny stocks to buy now 2019 matter and other details about the penny stocks market. Details await you below.
Penny stocks to buy now 2019- What is penny stock exactly?
Pennystocks are stocks that are responsible for a few “pennies”; Cent are traded, so for a few “pennies”. Often these are shares of companies that are about to go bankrupt or are already broke. In Europe, all shares worth less than one euro are considered as penny stocks. First of all: Trading in these shares is highly risky and can lead to total loss.
Therefore, when trading with penny stocks, if at all, only “play money” should be used, that is, manageable amounts could be waived if necessary. Identifying a prospective penny stock resembles the proverbial search for the “needle in a haystack”. We look at how you can do it and what you should be aware of.
Penny stocks to buy now 2019- Information
Do penny stocks actually rise more easily than “normal” stocks and therefore have more potential? Many investors think that a stock that costs just 20 cents can more easily double to 40 cents than a stock that costs 20 euros and would have to climb to + 100% to 40 euros for a price increase. However, this is a misconception in most cases. After all, studies have shown that low-performing stocks do not fare better than higher-rated stocks.
As a rule, weak stocks, which include penny stocks, tend to underperform. At times, the trading volume of Pennystock stocks also dries up completely, so that hardly any trading takes place and bid and offer prices (bid and ask) are miles apart. Nonetheless, stocks that are in the cent range often record extreme price swings that can be exploited by skilled traders to earn money with penny stocks.
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