Trading Penny Stocks - Is It Gambling?

By Author: Gino Branch
Total Articles: 93
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I put money into the stock market for nearly 5 years now. Having stated that, it wasn’t until I began trading penny stocks I was in a position to effortlessly quit my 9-5 day job and trade stocks for a living. I know very well what you are thinking. how did you do it? correct? Please keep on reading on and I might actually tell you.

Not really long ago I’ve browse a number of on-line content on numerous internet websites which make the declaration that trading penny stocks is like gambling. As an active and really thriving stock trader, these kinds of statements aggravate me as they do not appear to be genuine for many traders who trade the OTCBB and pink sheets. Actually, far from it, I don't appreciate any sort of gambling since I get pleasure from making money far more than losing them. I don't even like going to casinos, although actively playing poker might be an enjoyment.

There are some traders, to tell you the truth that trade penny stocks with all the same randomness as pulling the lever on the slot machine or rolling the dice. Nonetheless, these are usually rookies in the stock market, and ...
... they usually run out of money really fast. Those investors that happen to be serious about generating income with penny stocks rapidly master methods that allow them to do so. Plus they learn they are able to make a lot more cash with stocks that trade for less than $5 per share than they are able to trading conventional stocks with a much larger market cap. I personally like to pursue the type of penny stocks that are on the verge of breaking out. I always lock in my profit as quickly as I see fit. I'm not a day trader but I get so greedy to miss out on out on locking my profit when I have the advantage to do so.

I also want to be totally honest with you. Penny stocks are notorious for presently being associated with frauds. Some people manipulate the price by promoting certain penny stocks in a less than truthful and unethical way. You most likely heard of “pump and dump” scams and it's actually critical that no matter what system you utilize to trade these stocks that you are in a position to prevent most of these cons.

There are plenty of us that make a very good income on a consistent basis trading penny stocks. We now have uncovered options to attenuate possibility and avoid frauds. You will find efficient stock traders like Peter Leeds who analyze penny stocks utilizing techniques similar to the “fundamental analysis” used for traditional or blue chip stocks that trade at a lot higher stock costs and have much larger market cap than penny stocks.

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