If you’re looking for ways to make some extra money online, you may be considering trading stocks, but getting into this diverse and nuanced practice takes some trial and error to really get your bearings.
Most new traders want to find a way to get their feet wet without taking on too much risk for their hard-earned money, but the issue here is that trading stocks in any manner comes with some amount of risk.
Many newbie traders think that starting with “penny stocks” might be a good way to get their feet wet without taking too big of a risk. They’re just penny stocks, right? What could be the harm?
Well, the truth is that penny stocks actually come with a significantly higher risk than many other types of stocks, and this is true for many reasons.
Penny stocks are shares of smaller companies that typically trade for under $5 per share. These stocks are traded on the OTC market rather than an official exchange like the NYSE or NASDAQ, and they can often be subject to manipulation and fraud.
So trading penny stocks may not be as surefire as you might have thought, but as the old adage goes, “No risk – no reward.”
Penny stocks can actually generate significant gains when they are traded responsibly by an experienced trader, but it’s usually not recommended that you start out by trading these risky assets if you are completely new to the game.
With that being said, there are options for new traders to gain insights into this volatile market so they can start trading and taking profits. Penny stock alerts Discords are becoming increasingly popular among new traders because they allow them to connect with experienced traders and learn the ropes of stock trading.
In this article, we will look at some of the particulars of penny stocks so you can get an idea of why these low-cost options are actually more risky than tried-and-true trading assets. We’ll also look at how you can take advantage of the penny stock market’s volatility to generate returns through penny stock alerts Discord.
Why Are Penny Stocks Risky?
Here are some of the key characteristics of penny stocks that make them a high-risk/high-reward form of trading.
Low Liquidity
When we talk about liquidity as it pertains to trading penny stocks, what we mean is that they generally have a much lower trading volume than larger companies that are traded on official exchanges. This is due to the fact that they are traded on a smaller market, as well as the smaller sizes of these companies. Simply put, a smaller company means fewer stocks.
This poses two potential problems. First off, selling a large number of shares within these companies can significantly affect the overall price of the stocks, which makes them significantly more volatile. Also, because of their lower trade volume, it can be difficult to get out of a position quickly if shares start to drop in price.
Short History
Understanding the fluctuations in a company’s share prices is based on studying how they have been traded over an extended period of time. Since penny stocks usually belong to smaller companies, they have a much smaller track record of performance both on the stock market and within the industry where they operate.
Because they are less established than larger companies, they are much more susceptible to fluctuations in the economy, and there is a greater chance that the company could tank. If the company goes under, you could be left holding a bunch of stocks for a business that no longer exists.
Limited Regulations
Because penny stocks are listed on the OTC (over-the-counter) market, they are subject to less stringent government oversight than companies traded on official exchanges. This can potentially open them up to numerous forms of fraud, like artificial inflation of their share prices.
Penny Stock Alerts Discord
However! Just because penny stocks come with a higher level of risk, this doesn’t mean that they are always bad trades. It is possible to trade in these companies and make money, but it’s important that you do it with the proper guidance, especially if you are new to trading.
Here are some of the advantages of trading with penny stock Discord alerts.
Real-Time Alerts
When you join a trading Discord channel like Stock Dads™, you will get live alerts about real trades. Stocks Dads analysts closely follow the OTC market for up-and-coming businesses that they believe will be profitable for traders in their Discord channel.
Whenever Stock Dads™ professional analysts decide to make a trade, they’ll send out real-time penny stock alerts Discord to everyone who follows the channel.
Transparency
Stock Dads™ experienced traders provide detailed insights about every trade they are making. Penny stock alerts Discord will include information on why analysts believe it is a good trade, information about the company, and where they plan to buy and sell.
Anyone in the channel can review Stock Dads™ analysts’ penny stock alerts Discord and decide whether or not they want to make a similar trade. With the detailed insights provided by Stock Dads™ analysts, you can buy and sell at the same price points as our experienced traders.
Furthermore, Stock Dads™ analysts will always share how they did on every trade that they post in the Discord server. Whether we lose or win, Stock Dads™ is committed to providing accurate information on all of our penny stock alerts Discord.
Community
When you sign up for penny stock alerts Discord, you are getting more than just alerts. You’ll be part of a growing community of experienced and green traders who share their knowledge and feedback with one another, and you’ll have access to in-depth training materials.
Unlike many traders who just want to talk about how great they are at trading (even though sometimes they’re not), Stock Dads™ wants to hear from everyone in our community. When you join our Discord community, we hope you’ll share your goals and successes with us because we want you to succeed.
And when you post in our Discord channels, you can get real guidance based on our extensive trading experience.
Join Stock Dads™ on Discord
Here at Stock Dads™, we’re not just about growing our number of followers; we’re about getting results for our community because we only succeed when you do.
Click here to find out more about our Discord and all of the awesome benefits that come with it!