Penny stock

Penny stocks are stock which value is not more than $5 per stock, however these stock are more likely to be treated as a speculative playing stocks by large number of stock investors. Maximum of the small retail investors are fascinated by these stocks due to their low price.

Pennystocks are mainly low liquid, low volume and highly speculative stocks which tend to move any direction is significant way. One has to be more aware when trying to do stock trading or stock investing in this high risk penny stock as chances always remains high that these stocks tends to move in your opposite direction, but nevertheless one can make high descent earnings from these stocks if they are in right stock at right time and at right price.

Peny stock does not give transparent financial history due to which the main movers of stock market avoids to do any type of stock trading or stock investing in these stocks owing to which these stock lack enough liquidity as well as enough volume and due to these reasons there is significant price fluctuation. Whenever there are large number of buyers than seller in these stocks the stock make a significant upward move and if there is large number of seller than buyer there is significant downward move, which at many a point breaks the circuit which has been put by regulatory authority.

Proper technical study, stock market savvy and high risk taker peoples definitely makes good money from best penny stock but newcomers to stock market mainly the retail investor should remain out of these stocks as long as a clear fundamental picture arises from these stock.

Tips for penny stock trader