Thinking of trading penny stocks to earn quick returns? Then, be patient and learn the trading techniques first before you enter this uncertain world. This is because there is no use of crying over split milk and hence, you should train yourself well before trading in high risk penny stocks. Penny stocks show tremendous fluctuations which are very difficult to anticipate, or track, at times. Let us first study the salient features of fast moving penny stocks below.
Characteristics of Fast Moving Penny Stocks
Penny stocks are extremely volatile on an intra-day basis. They can rise and fall too sharply as compared to their larger peers or the broader markets. Lack of liquidity is the main problem in penny stocks. The number of outstanding shares among the shareholders are very less, and so are the number of shareholders. So, for a person who has been stuck in such stocks, selling it can be very difficult in times of a bad market. This is because no person is willing to buy these shares in a bearish market, even though the valuations are looking attractive as compared to previous valuations. However, this can be an opportunity for those who have sharp reflexes and can off load positions at right levels.
Fast moving penny stocks in 2011, or beyond, would always be a risky play because of the lack of fundamentals and backing of earnings to stock movements or market capitalization of that firm. Many times, not much is known about the promoters and management of these firms which makes investing/trading a dicey proposition. Movements in such stocks can be due to heavy buying/selling from some domestic players or brokerage firms.
Chevrolet Chevy A/C Compressors
Text übersetzen Deutsch Französisch
Characteristics of Fast Moving Penny Stocks
Penny stocks are extremely volatile on an intra-day basis. They can rise and fall too sharply as compared to their larger peers or the broader markets. Lack of liquidity is the main problem in penny stocks. The number of outstanding shares among the shareholders are very less, and so are the number of shareholders. So, for a person who has been stuck in such stocks, selling it can be very difficult in times of a bad market. This is because no person is willing to buy these shares in a bearish market, even though the valuations are looking attractive as compared to previous valuations. However, this can be an opportunity for those who have sharp reflexes and can off load positions at right levels.
Fast moving penny stocks in 2011, or beyond, would always be a risky play because of the lack of fundamentals and backing of earnings to stock movements or market capitalization of that firm. Many times, not much is known about the promoters and management of these firms which makes investing/trading a dicey proposition. Movements in such stocks can be due to heavy buying/selling from some domestic players or brokerage firms.
Chevrolet Chevy A/C Compressors
Text übersetzen Deutsch Französisch