Penny Stock Prices – When To Buy and When To Sell?

Penny Stock Prices

Penny stock prices fluctuate and understanding when to buy and when to sell these securities can make a big difference in the results seen. Obviously, the old rule of buy low and sell high still applies, but with penny stocks on the rise the gains may be as small as a percentage of a penny. Timing is critical, and this is true whether you are trading stocks worth pennies or those worth much more. One way to identify good picks involves research, because you need to know what is going on in the world that may affect the market trading conditions. Penny stock prices can rise on positive market rumors, or the anticipation of certain global events, and this is also true in reverse.

One method for buying and selling both American and Canadian penny stocks involves watching the other players. Penny stock prices will increase if there is the expectation of good news or rumors abound, and this is usually a great time to buy, before the price starts increasing. Once the news or rumors have been released or shot down then the price of the stock will normally come back down again. If you buy at the beginning of the news and rumor cycle and sell once the news has been released or the rumor is either confirmed or denied this may be a good point to sell for some investors. Good penny stocks should have some history information available, and should be completely researched to rule out any scams.

There are many hot penny stock picks out there, and some even trade on the NYSE and NASDAQ, so you know they are quality stocks. Some investors may buy any penny offering below a certain price, in the hopes that one of these stocks will be the next Microsoft. Other investors will set limits, and sell their stocks once the price drops a certain dollar amount or value percentage. Penny stock prices can range from a fraction of a penny all the way up to five dollars a share, and trading these stocks can be profitable if you take the time to research and evaluate each choice. Use a proven strategy to help guide you in buying and selling these securities for the best possible results.