What Is A Penny Stock Trader

Penny stock trading can be an important part of a diversified stock portfolio.

What is a penny stock trader. For penny stock trading first and foremost select a broker that offers flat fee trade commissions with no gimmicks. Securities traded on a national stock exchange regardless of price are exempt from regulatory designation as a penny stock since it is thought that exchange traded securities are less vulnerable to manipulation. This is why people love trading and this is why we have made it our mission to help people accomplish this goal. We can t promise you ll become a millionaire penny stock trader but you can still make a decent living day trading penny stocks.

However when a penny stock has breaking news they will often trade at 40 50x relative volume achieving 5 to 10 million shares of volume on a big day. Here are nerdwallet s picks for the best brokers for penny stock trading. What are penny stocks. But before you put your hard earned money at work you need to find penny stocks that are more tradable and liquid than average.

A penny stock typically refers to a small company s stock that trades for less than 5 per share and trades via over the counter otc transactions. Penny stock businesses are tiny. Penny stocks are low priced securities that trade for less than 5 a share. Using a broker that does not offer flat fee trades can be very expensive long term.

Penny stock is a term that describes a low priced stock. Becoming a successful penny stock trader gives you real control over your time income and destiny.