[mage lang="" source="flickr"]trading penny stocks[/mage]
Site for trading fake penny stocks?
Hey everyone. A while back a friend told me about a fake stock trading website that is used for learning how to trade on the actual stock market. Its not entirely free but the stocks you trade are worth very tiny amounts of money so you never really lose anything. Can anyone tell me what the name of the site is? Thanks -Rob
Trade a simulator while you learn.
Investing Tutorials – Basics
http://simulator.investopedia.com/home.aspx (simulator, and finance terms and definitions)
You can also type in the Search Y! Answers box at the top of this screen for “how to invest,” and get lots of answers.
Novice investors make the very critical mistake that a penny stock is a company that is just starting out or immature and just waiting to bust out. In fact, most penny stocks are priced so cheaply because the value and fundamentals of the underlying company is basically junk. The companies normally have very high debt, negative retained earnings, bad management, etc. Most penny stock companies will not be around for the long term as they are mostly smaller cap stocks, which have an extremely high long term failure rate. A penny stock is MUCH more likely to lose all of its value over the long term, than to make money. They can be fun to play with using small amounts of money, but NOT a very wise investment tool.
You might want to read this article about penny stocks, they are highly speculative and risky.