College Stock: Penny Stock News

The Dean has been receiving many inquiries from newcomers and existing members of the CollegeStock Community. When it comes to speculative investing and the small cap markets, many people have questions. Since CollegeStock provides Higher Education for a Higher Net Worth, The Dean wants to be able to answer some of these concerns.

If you have an interest in the stock market, the popular trading of penny stocks probably seems very appealing to you because of the potential for a high return on your investment. There are many things you should look into before beginning to trade penny stocks, including when to buy penny stocks, how long to hold them and when to cash out.

In The Dean’s 10 years of small cap market experience, he has learned that it’s important prior to realize the tolerance for risk and allot funds that you are willing to lose to beginning penny stock trading.

Although penny stocks are very appealing to investors because of their low cost (the SEC defines penny stocks as stocks that are less than $5 per share), many of these stocks lose their value due to events like the companies going out of business or the SEC putting a stop to trading ($SPNGE, for example).

The Dean has also learned that it’s crucial to have the ability to buy and sell these penny stocks at a moments notice. This means that, in most cases, you will not have time to move funds into your brokerage account so it’s important to start your penny stock trading when you are financially comfortable enough to do so.

Before investing in penny stocks, or any type of stock for all that matter, you must also make one big decision—whether or not to use a broker/ advisor to help you decide which stocks to invest in, or whether to do it yourself using an online site. The Dean believes there are both benefits and downsides to trading on your own just like the market moves up and down.

For many in the CollegeStock Community, you have already realized that by using a broker you have pay a percentage to the broker for their commission. At the same time, you can also benefit from working with a broker because you are able to run your ideas by an experienced professional who can help you maneuver through the often false information available out there regarding these stocks.

The Dean has also learned that by managing things yourself and using an online site, you typically only pay a flat fee and wind up paying less to trade.

As many in the CollegeStock Community and The Dean’s Honors Class have realized, to move forward trading penny stocks on your own using an online site, the timing of your purchases are very important.

The Dean believes it’s a good idea to trade through a site that will make recommendations to you on timing and what stocks are hot. Although you can’t count on this information to turn into anything concrete, at least you will have some guidance of how to choose the right penny stocks.

The Dean wants all of his students to know that to truly benefit from being part of the CollegeStock Community, you must make the jump and register for Honors Class. Remember the importance of timing and know that only Honors Students learn about The Dean’s Ivy League Stock Picks before the rest of the CollegeStock C0mmunity.

So, what’s an Ivy League Stock Pick?