Penny Stock Symbols

Understanding Penny Stocks Guide, Symbols

Penny stocks are regarded as risky investment instruments for investors because of the many drawbacks associated with them. Illiquidity is usually cited as one of the more popular reasons for this risk as shares of penny stocks don’t usually change hands due to the lack of market support and so selling them might not be that easy for investors.

penny stock charts

Since a savvy investor looks into the liquidity of his potential investment, understanding penny stocks will help to guide the small cap trader around these challenges. While liquidity is important, its one of several factors.

Remember that most penny stocks are illiquid for a reason: there is no interest in the future potential of the stock. This suggests that either the investing public is completely unaware of the stock (no exposure within the investing community) or when there is a build up of volume, it leads to lower share prices (pump and dump, with insiders dumping their shares).

Before you start to trade penny stocks, its important to research more about the company’s potential. Learn not just the idea, but whether or not they can sell their idea. If the company isnt making money, you wont see a genuine increase in share price.

There are plenty of newsletters which will help to highlight this. Of course, one of the challenges with investing in penny stocks is that there is a lack of financial information (especially with pink sheets and some OTCBB listed stocks).

The pink sheets and over-the-counter bulletin board or OTCBB also publish transaction details of penny stocks traded there on a daily basis. These are the first hand sources of information on penny stock trading and investors would benefit by monitoring them.

Many penny stocks are also listed on major exchanges like the NASDAQ as small-cap stocks. These exchanges do require submission of key details on related companies’ business operations under their regular disclosure norms.

Buying and understanding penny stocks is just like buying any other type of stock. First, presuming you have an investment account set up, you will need to research your choices. Once you have made a decision based on the due diligence you have collected, its time to buy. Be sure to check the value of commission you will be billed (not all brokerages charge the same fee). Remember, your broker makes money, whether you do or not.

Since penny stocks tend to move quickly, day trading is a popular way in which investors can maximize their gains by trading their stocks, often in the same day. This form of short-term investing indeed takes a lot of guts as short term performance of any particular stock can either swing up or down. Many would be day traders have lost a fortune trading away their hard earned money. Paper trade first before trying this method. Once your money is gone, its gone.

Day traders typically look for a collection of the smallest of gains. Typically, most day traders are happy with an eighth of a point increase in share price. Many day traders are happy with skimming $200 a day in profits (usually for a couple of hours watching the screen).

There are also tax consequences for day trading penny stocks, so, it pays to talk to a tax specialist first to ensure that you are taking advantage of all tax benefits (and avoiding tax drawbacks). Also, it pays to speak to a financial adviser before taking these risks.

Its important that you take your time in understanding penny stocks before you invest in them. The return on that investment of time may be the best investment you make.

Investing can be confusing, but we can help with more information on small caps, where to buy penny stocks online and where can I purchase penny stocks.

By Christopher Smith Published 10-27-2007

Best green penny stock symbol
UNDERVALUED 10 FOLD which means the stock is way undervalued and the TIME TO BUY IS NOW!!! Magnum just commenced production for rubber nuggets […]

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SAH just keeps going higher, making me happy I got out…really gotta learn to exit if a stock can’t take out support…because now you see what a short squeeze for those stubborn shorts looks like.

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This week we look at the small Diagnostic’s Subtance Company – DNA Genomics, ticker symbol DNAG. All of the strategies presented here are covered in detail […]


Nasdaq Symbol:MDOR has over $131 million in contracts but yet the market cap is undervalued by 10 fold. MDOR true market value should be 10x’s current market price (.51 cents x 10=$5.10 per share)

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Hey, at least you’ll have more fun that way and you’ll actually have better odds – 47.5% – of literally doubling your money overnight than if you bought a penny-stock!” My thoughts exactly.

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3 Responses to “Penny Stock Symbols”

  1. […] screeners are available free online, but not all of these include penny stocks. To find hot penny stocks picks, look for a specialized penny stock screener that can work with the limited amount of data […]

  2. mlgreen8753 says:

    Thanks for the advice. Mentor Capital (MNTR) is my most recent stock pick. They are the primary funding source of Quantum Immunologics (QI), a bio-tech company with a goal of marketing their immunotherapy for the treatment of breast cancer. They have FDA clinical trials on the way. According to an article published on Breast Cancer Investing, Mentor capital’s financial support in QI could result in stock price gains.

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