Penny Stock Investing

40- Do you know the buying and selling techniques? Can you determine the right time to buy or sell penny stocks?

• When you must buy penny stocks?
• When you must sell your stocks?

41- What you should do before selling or buying penny stocks?

• Getting offers from salesperson.
• Getting price information; bid and ask prices.
• Do not make a hurried investment decision.
• Study the company issuing the stock.

42- Do you know the prices of penny stocks? How to make profit from the difference between them?

Note:

• Keep your eyes on penny stock prices and try to find out the right time to buy or sell penny stocks because it is very important to know the answer of this question “WHEN?”

43- How did you know that the spread, the difference between bid price and asked price, is in your favor or not?

44- Do you know what is the price supposed to buy or sell your stocks?

45- If you know the purchase price, does it mean that you know the selling price also?

46- What are your interest prices?

• The lower bid price and the higher ask price?
• The higher bid price and the lower ask price?

47- Can you determine the companies’ type that trade on penny stocks?

• Unknown companies?
• Have good names in the market?
• Carrying small amount of business?
• Have less salary, and less investing?

48- Did you study the companies in penny stocks before investing in? Can you invest your money in unknown companies?

Note:

• It’s important to get some information about the law of companies’ states.
• You need to take into consideration the differences laws in different states.

49- Do you have enough information of the new companies that you will trade with in penny stocks?

• Information about its reality.
• Information about its business.
• Information about its plans.
• Information about its competitors.
• Information about its ownership and the management.
• Information about its capital.

Note:

• The above information will help you to make sure that you are working in the right company.

50- How to get information about companies in penny stocks? And which way you will use to contact it?

• By phone?
• Via mail?
• Be a customer there?
• All?

51- How to differentiate between the good company and the bad company in penny stocks?

52- Do you have information about stock itself before investing in? Why you have to get information about the stock’s history?

53- Will you need a market maker? Why is that? And what are his forces that may help you in penny stock investing?

54- Do you know when manipulation happens? Who make this? How to discover the price manipulation and how to avoid it?

55- What’s the meaning of IPO?

56- What’s the difference between prices in the secondary market and IPO?

57- Why investors have difficulty getting shares in an IPO?

You can’t take any decision in the first time you enter the world of penny stocks so you have to defending yourself by high knowledge levels. Make a good decision with your answers.

There is one more question we want you to answer, Are you ready to invest your money in penny stocks?!! Follow these instructions if you accept: