Where to locate stocks cheaper then a penny & also Penny Stocks? And how to purchase them?
I can virtually make a blanket statement that you are more likely to lose investing in penny stocks.
–19 years of trading experience, avoid penny stocks.
“A penny stock is a common stock that trades for less than $5 a share and are traded over the counter (OTC) through quotation services such as the OTCBB or the Pink Sheets. Although a penny stock is said to be “thinly traded,” share volumes traded daily can be in the hundreds of millions for a sub-penny stock. Legitimate information on penny stock companies can be difficult to find and a stock can be easily manipulated.”
PS be careful about penny stock hype.
If you do this, watch the volume of these stocks. They are thinly traded. It is easy to buy them, but good luck if you want to sell at your price. The bid-ask spread might be so wide you could drive a Mack Truck through it, e.g. 100% or more. That means if someone buys at the ask, the market maker doubled his money or better. But if you want to sell (bid) to the market maker, you’re subject to his price and he knows his book, who bought what and when. So unless another “sucker” comes in and buys at his price, he won’t raise the bid.
I looked up “BOOMj” as one (now removed) poster discussed this.
According to Yahoo finance, “Boomj” has NO cash, NO assets of any kind, and they are losing money. How someone can think they have a $700 million dollar business I don’t know. As comedian Roger Dangerfield once said, ‘maybe a company like that exists in Fantasyland.’
Most of these penny stock companies rely on hype, spam posts, spam emails and spam faxes to get someone to buy the stock cause not a single respectable Wall Street firm ever invests in these mostly shell companies. Why? Because they know most of these companies are worthless. If they really had a hot idea, money would be pouring all over them. That should tell you something?
How to buy penny stocks (super easy)