How to buy Penny Stocks in New Mexico
What are Penny Stocks?
By definition, penny stocks, also known as nano-cap stocks, micro-cap stocks and OTC stocks, are common types of shares of small public companies that trade at low prices per share.
Why buy Penny Stocks?
- For people with low paying jobs and less money to invest, buying penny stocks is a good method of earning and saving money.
- While the amount of risk involved is very high but if successful, these can be a source of enormous profits.
- The only way by which chances of risks can be minimized is by doing an ample amount of research before making any investment.
- The very main and attractive reason why people buy penny stocks is their low pricing.
- Unlike other shares, these shares are easily available for the common public to buy and do not even need a live broker. Online brokerage accounts are used to manage one’s investments.
- The prices of these shares increase at a very fast pace. So, profits double or treble when their prices move up.
Buying Penny Stocks without a Broker in the state of New Mexico
- The company should be investigated before investing
Though it is difficult to find adequate information about these companies but Google Finance and Yahoo Finance may be of some help while doing so.
For specific sorts of information regarding over the counter penny stocks, services such as the OTC bulletin board and the National Quotation Bureau may be used.
When a company makes Initial Public Offering (IPO), this means that the company has made its first move into public ownership.
- High probability of fraud while investing in penny stocks
A ‘pump and dump’ method is used by companies when they price their stock at a low cost and is promoted as good stock. These prices fluctuate and cause losses to the buyer.
- The buyer should open an account by taking advice from an online brokerage
To make purchases and pay fees without a live broker, sites such as E-Trade and TD Ameritrade are used to set up accounts with the required amount of deposits.
- The art of purchasing and trading
After extracting all the information and pros and cons of buying penny stocks, one should begin trading.
One can buy as many shares as much as their funds allow but buying a lower number of shares is advisable in the beginning.
When we look for these stocks in New Mexico, information related to the prices, buying and selling shows up.
Orders should be placed carefully using limit orders. This gives the buyer the opportunity to decide that at which price they want to buy or sell it while the market orders execute the orders at the current market price only.
After the buyer submits his/her order, a confirmatory statement is received by the order.
And at last, the task of buying penny stocks is successful.
Popular companies to invest in Penny Stocks
- Globalstar (NYSE: GSAT)
- Torchlight Energy Sources (NSDQ: TRCH)
- Denison Mines (NYSE: DNN)
- Conformis (NSDQ: CFMS)
- Avinger Inc (AVGR)
- OneSoft Solutions Inc. (TSXV: OSS)
- Groupon Inc Common Stock (NASDAQ: GRPN)
- AVEO Pharmaceuticals, Inc.(NASDAQ: AVEO)