Introduction to Penny Stocks

Many people are interested in the NASDAQ and the NYSE. Many believe they can earn easy money on these bourses. But good stocks tend to be expensive. Many turn to penny stocks because of this. This is not to say that the more affluent do not ply the penny stock trade. They often get into trading penny stocks as well.

A small time investor can potentially earn big profits by dabbling in penny stocks. The amount of gain required per trade to earn a big profit is much lower on the penny stock markets. This is because a penny stock is defined as a stock that is priced below $5 per share. In many cases this figure is below a dollar. Thus small movements of a few pennies can cause big fluctuations in terms of percentages.

The Internet offers an inherent advantage to every penny stock trader, in that information is much more readily available to traders, and information is king when it comes to trading.

There is a great deal of information that online services provide to penny stock traders. Most online services run subscription deals for traders. Some provide free information of general interest as well. Some other online services provide relevant information free to penny stock traders.

The Peter Leeds Penny Stocks online service provides subscription-based information to penny stock traders. The reputation of Peter Leeds is very high in the marketplace. The service costs $285 for a 3-year subscription, or $195 for one year.

Investment U another well known online service. It provides a free periodical of the same name, which will be of interest to penny stock investors. James Boric is the head of its investment advisory panel. He also provides the Small Cap Strategy Report free to penny stock traders. These newsletters carry info on the best penny stock picks. The online service is owned by The Oxford Club.

If you're going to get into penny stock trading, education is of vital importance. Be sure to learn the markets well, and try your strategies out on paper before committing real money.

Amit Raju owns and operates http://www.tradepennystocks.info, a resource for beginning Penny Stock Traders