At the end of the day, penny stocks have a lot of risks involved and price can be one of those risks. This happened earlier in the year as well. Can Nio get its act together? Last month we saw the energy penny stoc k reeling in pain after taking big from its April highs. So has the trend changed in June? Well if all you did was buy CHK stock at the end of May and hold it through the end of June, that position would be about the same.
But the outlook may become brighter for Chesapeake Energy. This energy penny stock has been frequently featured on PennyStocks.
The company focuses on alternative energy, mainly fuel cell development. Why is PLUG stock performing badly? But because the consumer market is still slower and margins are slim, you may see why Plug might have a leak.
I think Plug Power is still a penny stock to watch because of its revenue growth. If the company can streamline operations better, this could be a sound storyline. Furthermore, the company said it is on pace for its largest second quarter in company history. The technology stock finished May near its lows.
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So, how did FIT stock fair in June? Not that great. It also expects adjusted gross margins to decline slightly, as well as declining selling prices. And with analysts not expecting much, will the retail public follow suit? Your email address will not be published.
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Investing in Penny Stocks for Dummies
Up next. Share article The post has been shared by 17 people. Facebook If you want to get serious about trading marijuana penny stocks by learning the trading techniques for penny stocks, there will be vast opportunities waiting for you. There are trading challenges to turn the newbie traders into excellent penny stock investors using their different tactics of investment. There are video lessons and self-training blogs available online.
Virtual cash trading could be an exciting option, to begin with.
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Penny stock trading is not for lazy people. Alright now that we got all those steps out of the way here are a few stocks the have been receiving some attention. DCGD is a stock that has been on fire. This is the best performing penny stock of the year. It at one time was under. Investors are excited and the stock has been on fire. Make sure you check out our DCGD stock article. NRTH is a medical marijuana canabis company. We are watching to see if it has bottomed out and ready to bounce.
If it can break past its 50 day moving average soon we believe it could do very well. The answer is volatility. And it's happened. Scour enough investing message boards and you're sure to find success stories from investors who made a mint while "playing the pennies. Companies that can successfully make the jump from penny stock to power stock are rare, but when you find them they pay out in spades.
The real trick is finding the right stock. Even legitimate penny stocks are plagued by very high risk.
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Two principal reasons that risk is so inherent in penny stock investing are low liquidity and poor reporting standards. As investors saw most recently with the sub-prime lending market, liquidity problems can be a huge deal for investors. And unlike lending, low liquidity plagues the penny stocks on a daily basis. Because penny stock investing is such a niche area, even relatively low trade volumes can have an impressive effect on a stock's share price.
According to the Securities and Exchange Commission SEC , "Penny stocks may trade infrequently, which means that it may be difficult to sell penny stock shares once you own them. Because it may be difficult to find quotations for certain penny stocks, they may be impossible to accurately price. What this means is that if you play with penny stocks you may end up with a whole lot of worthless stock that you can't get rid of. Another concern for investors is the lack of stringent reporting standards for companies whose stocks trade on OTCBB or in the Pink Sheets.
OTCBB does require that registered companies stay current with SEC filings, but those filings are the bare minimum -- well below what an exchange-traded company would have to file. Since companies that are delinquent in submitting their filings to the SEC are still so accessible to individual investors, penny stocks have proven to be a treasure trove for dishonest people.
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That's one of the reasons that the SEC has taken such an active role in making sure that the American public is protected from unscrupulous companies and individuals in the penny stock arena. For your broker to even sell you a penny stock, they're legally required to send you a document outlining the risks of penny stock ownership. There's a reason brokers and regulatory bodies go to such lengths to make sure that you're not blindly investing in penny stocks; scammers are out there.
Spam is the scourge of the earth. It fills our e-mail inboxes with garbage and junk, and chances are if you get a decent amount of spam, you've seen messages designed to promote penny stocks. But the spam isn't relegated to e-mail. Message boards, chat rooms, discussion groups -- even advertisers on legitimate websites -- are all home to their fair share of the stuff. It goes without saying that you shouldn't go out and buy a stock that's praised in a sketchy e-mail, but some people do, and scammers make millions of dollars off of unsuspecting investors.
One of the most prevalent types of penny stock scams out there is the "pump and dump. For help on avoiding pump and dump scams, check out the SEC's article on the matter. So now that you know the scary side of penny stocks, how can you cash in on the potential growth that they have to offer?