A Guide to Cell Phone Signal Boosters

Poor cell phone reception continues to be a major problem…

Debt Busters: The Complete Guide to Getting out of Debt

When it comes to getting out from under the mountain…

A Guide to the Best Penny Stock Advisor

A Guide to the Best Penny Stock Advisor

For the most part a penny stock is a fairly small company that has highly speculative shares.  These companies are also subjected to very limited listing requirements, as well as less strict filing and regulatory standards. There seems to be a differing of opinion in what exactly is a penny stock. Some investors consider a penny stock to be any stock that either trades for mere pennies or, at the very least, for less than $5 per share. Some investors believe that any stock that trades off of any of the world’s major stock markets is, in fact, a penny stock. Regardless of what the exact definition is, if you are considering investing in a penny stock, it is highly suggested that you redeem the services of a penny stock advisor.

The term ‘penny stock’ is generally accepted to be a misnomer.  There are quite a few large corporations that trade their stock well below $5 per share due to market capitalization; and there are also quite a few tiny companies that trade their stock for well over $5 a share. However, the Securities and Exchange Commission (SEC) states that any stock that trades under $5 per share should be considered a penny stock.  The most important thing to know about penny stocks is that they are much more risky than regular stocks on the stock market. In order to navigate successfully through these waters, a penny stock advisor should be consulted.

Day traders revel in the use of a penny stock advisor simply because of their emphasis on stocks that are not only volatile, but that are also well performing.  A good penny stock advisor should inform you that the share prices of penny stocks can fluctuate radically in a single day. This is great as it can pave the way to profit but, on the flip side, you could also lose your investment as well.  Since one of the main difficulties that are often faced by those people who are wanting to invest in penny stocks, is lack of proper information by which to judge a company and the value of their stocks, a penny stock advisor should be able to refer you to a penny stock newsletter or other source of verifiable information. A penny stock advisor will often suggest that you do a search on a trustworthy financial web site to learn more about a penny stock company before you invest your money.

Another type of a penny stock advisor is the form of a computer software tool or program. Such tools are becoming more and more popular with day traders and penny stock investors all over the world. This type of penny stock advisor is easy to use and simple to understand, regardless of the experience level of the investment user. Electronic penny stock advisors are a good alternative in that they already do all of the research for you. Leaving you to only pick the penny stock which you prefer and invest your money.

Photo courtesy of dawnzy58.

Follow Zenedy