Nothing could be as lucrative than to operate in very cheap stocks over the counter or OTC for short. To start with they are priced very low costing just few cents or pennies each ridiculously. 5 according to the strict SEC guidelines, if it’s in any way to qualify as penny stocks.
Because they are priced exceedingly low, investors who look forward to make huge fortune by trading in stocks, buy penny stocks in large volumes hoping to trade them for big revenue at the right opportune. However as I have already mentioned if things work out on your side then perhaps you have a much better chance to win and make a lot of money as you may achieve this while playing pokers or possibly slots.
As part of your planning process you can pick your own best technique to suit your character and the constraints of limited resources available at your disposal. Everything you can adopt is a defensive techniques to minimize loss best. To take action you have to find stocks of those companies that are in business which includes substantial demand in the market as well as have a great future for growth and expansion.
- It can spoil customer practices
- Compare your rivals’ growth over a given time with your own
- An advanced demonstration level, probably with an progress portal system
- Link Link
- Determining alternative classes of action
- 7 years ago from Qld, Australia
The industries are perhaps those of Bio shares, energy shares or something specific niche market which includes huge potential that you can foresee. You must scout such undervalued stocks that is missed out by others and spend money on them so that you may cash them when things are ripe. Now according to statistics 95% of opportunities fail hence its always best to spread your dangers by diversifying as much as you can when trading in very cheap stocks of varied OTC companies.
Even if 95% of your profile fail and fall terribly at least the others can climb so saturated in value that it pays you back several hundred times the worthiness of your total assets. Once you recover the original amount invested you can play with house money then i.e. with the surplus that you gained in profits. in a season 200 in various penny stocks were able to make hundreds of thousand dollars.
This is why is trading in OTC and red sheet stocks so profitable even though penny stocks are risky because of their great volatility. So to make your own analysis before taking any decision to get, it’s important that you learn all about Technical and Fundamental evaluation. Its like making the selection of a pachyderm or a horse for investment. There is certainly yet another way by way which you can protect your opportunities which is by choosing hedge money that complement one another, say you buy stocks of oil and gas companies as well as those for transportation companies.
If the price of oil increases then it might be profitable for oil companies however, not those of the transportation companies, or when the oil prices falls the transportation companies would be enhancing their profits. So which other way your investment remains secured. So accordingly choose your stocks and shares meticulously for your portfolio, such that if 3 of the 5 companies neglect to deliver even, you can cover up your cost from increases in size created by the other two.
Now as a newcomer its quite easy to be overwhelmed with such a sizable number of shares on the market particularly OTC very cheap stocks. To help you in your energy you’ll require specialized help and use of software to help you with your comprehensive analysis of each of the penny stocks you target.
For this you’ll need the service of news letters since information on OTC stocks are more often than not sketchy and you will need genuine insider information. Unlike stocks listed in nationwide stock exchanges where details of each one of the listed companies are often available the same is not true for micro stock companies. Hence you have a subscription to authentic news letters to remain up to date.