A per - share structure may be better suited for investors who are buying a relatively low number of shares and may not be the best structure
for penny stock traders.
Not exact matches
Too many
traders see a position move to their target price, and then decide to hang on
for a few more
pennies: after all the
stock is hot.
The company is best
for casual
traders, though its pricing on
penny stocks is very favorable.
Speculative
traders who focus on high - risk, high - reward
stocks (such as
penny stocks) are more heavily scrutinized than someone who invests in blue - chip, dividend paying companies that are held
for the long term.
Trading
penny stocks is considered a very risky proposition, especially
for novice
traders, as there is a tendency of these
stocks to experience greater volatility and larger value movement than blue chip
stocks.
Leverage — Unlike the
stock market, where you might have to actually spend up to $ 100,000 to buy $ 100,000 worth of a
stock, through margin deposits, a commodities
trader can leverage hundreds of thousands of dollars worth of a commodity
for pennies on the dollar.
The company is best
for casual
traders, though its pricing on
penny stocks is very favorable.
Overall,
penny stocks are possibly not suitable
for active day
traders.
For traders specializing in low cost
penny stocks, their main concern will be the trading cost.
So
penny stock traders need to watch out
for the fine print here.
While most brokerages do allow
for penny stock trading, not all of them cater to the specific needs of the pink sheet
trader.
Who It Works Best
For Seasoned, active
traders who know the
penny stock market well and trade frequently.