Some people failed to trade in money market because of their limited capital. Penny stocks trading give them golden opportunity to make their money double or even more. Obviously, the risk is involved in such trading, but the risk is involved in every business activity, as per regulation of security exchange commission stocks that traded under five dollars are known as penny stocks.
An investor should invest in top penny stock to balance the risk factor. It is very difficult for any investor to find top penny stocks as the companies that trading such stocks are not enlisted on major share market or stock exchanges; you can’t find proper information of these companies. Now the government is making it compulsory for such companies to submit important information like operating expenses, revenue report to SEC. So that trader can get the information from OTCBB website and make appropriate decisions.read more helpful information on penny stock at http://www.berkeleydaily.org/helpful-information-penny-stock-trading/
New investors should be aware of rules and regulation of trading penny stocks. As penny stocks are available at a very low price, some people buy a large number of penny stocks and if the price increases, they sell all their shares same day to make quick money. But now the government is imposing restrictions on making transactions like five trades in a week up to twenty-five thousand is allowed, if any investor disobeys this, his account will be kept on hold for ninety days.
Most people get attracted by penny stocks as they offer the chance of obtaining high profits. But before investing your hard earned money into penny stocks of any company, do all possible research of the particular company. It is recommended to invest in a company which has the potential of big returns and have a stable financial position. Being an investor, one should follow strict guidelines to trade in penny stocks and to get higher returns from the investments.