Penny Stock Basics - High Risk, High Reward

Today's guest blogger is PennyStocksVIP. They have kindly offered to share sections of their members' only PDF with our blog visitors today. Although risky, penny stocks have a certain charm. These excerpts will share simple definitions and information about these high risk, high reward stocks. Learn more about PennyStocksVIP and their complimentary alerts.

What are Penny Stocks?

First, let us define what a penny stock is. While there is no real definition that is commonly agreed upon, how investors behave with certain stocks give us clues. Most stocks trading at below $5.00 are treated as Penny Stocks. This, even though being the mist defining of the criteria, is not all there is to look at. There are three major guidelines to follow to see if you are looking at a Penny Stock.

1) Price per share: As mentioned above, the trading price range helps determine if a stock is a penny stock. The lower it is, the closer it is to being a Penny stock, although there is no exact point when this happens.

2) Markets: Depending on where a stock is traded, such as Over The Counter Bulletin Board (OTC-BB), Canadian Venture Exchange (CDNX) or Pink Sheets, it may categorize a company as a Penny Stock. As Penny Stocks trade on different market exchanges, one will need to know where their stock of interest is trading before setting up an order. Continue reading "Penny Stock Basics - High Risk, High Reward"

Penny Stock Investing

Steve Zelin from Zantrio has provided some great guidelines for trading penny stocks and finding the right broker for you without putting your investment at risk. The goal at Zantrio Trading is to bring the world wide group of financially oriented individuals together, to share their valuable financial ideologies. We hope you will enjoy his article and comment below.


With the massive undertaking of the cleanup for the BP Gulf Oil Spill heating up, investors are looking intensely, although with extreme caution, into penny stocks that provide specialized services to clean up chemicals, such as oil. Savvy investors as well as small, even first time investors seem to be willing to fork over a small amount of disposable cash, to take a chance at that potential, big shot with these penny stocks. With so many websites on the Internet that provide penny stock tips, investors should give serious consideration before utilizing these frequently ruthless, pump and dump schemes however, we are not implying that all of these sites provide bogus or misleading information. Before taking any recommendation from these penny stock tip websites, investors should investigate as to whether the website is being reimbursed for promoting any particular penny stock. Frequently, potential investors will find that these websites are in fact being compensated for promoting a particular penny stock thus; investors should do their own extensive research prior to risking any amount of money on even the most appealing, penny stock tip. Continue reading "Penny Stock Investing"

Penny Stocks are an Essential Element for Traders

Due to the recent and unfortunate oil spill in the Gulf, many of us are seeing the effect on the stock market and wondering what the future may hold. C. Thornton makes reference to this hot topic, providing an example for a momentum trading strategy. He offers other intriguing strategies in regards to penny stocks that you will find in this article. If you like what you read, be sure to check him out further at Buy Sell Short


Penny stocks have long carried the mantra of the ugly step child when it comes to trading stocks on Wall Street, mostly because of the shenanigans prevalent in the OTC/BB market. However, traders that turn a blind eye towards small cap penny stocks are missing out on a great profit-generating sector of the market, a segment of the market that tends to outperform its large cap brethren in the early stages of an economic recovery, much like the one we are in the midst of right now. Continue reading "Penny Stocks are an Essential Element for Traders"