Penny Stock Trading

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How can someone start trading penny stocks?

Penny stocks can be traded via most broker dealers, many of which offer the advantage of online access. Because these stocks can move with considerable volatility, having an online broker may be best. However, while penny stocks may offer the potential for better returns, the probability of that return is highly unlikely. In fact, most penny stocks are simply “pump-n-dump” opportunities that you hear about via chat rooms or rumor, but by the time you get in, the people who chatted it up are already leaving, letting you ride the stock down for the loss.

Keep in mind, a penny stock did not start as a penny stock. But through market changes or worse (the potential poor corporate management!), the companies stock has fallen to this price. Be very careful and do your full due diligence before investing.

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