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Trading Penny Stocks is thought of as taboo, and many investors shy away from it altogether because they thinks it's too risky for their investment appetite. The truth is that penny stock investing should be a part of every serious traders portfolio. This is especially true if you are younger investor, and want or expect higher returns than what the Blue Chip companies can provide. Let's face it 7 or 8 percent annualized returns is not that exciting. With that said one should never have their whole nest egg invested in OTCBB stocks. I would recommend that younger more risk accepting traders should have 20-30% in penny stocks. First of all the definition of a penny stock by most accounts is a stock that is just that "trading for pennies" or less than a dollar. It's also a misnomer that every penny stock is a scam or not a legitimate company. There are many multinational companies that trade over the counter on the OTCBB. You can and should of course be diligent in what you invest in these markets as listing requirements are less stringent. The most important aspect of trading in micro cap companies is to keep in mind that you are going to be trading, not investing. Penny stocks for the most part are not buy and hold type of investments. This is not to say that you can not find a few here and there that may be long term candidates. In general though you're going to have the best luck trading in and out of these stocks. Penny Stocks usually trade on thin volume so they move predominately on news driven events. Taking advantage of this momentum that is built upon these news releases will provide you many opportunities to get in and out with huge potential profits. Remember to never fall in love with a stock and in the penny stock market this is especially true. Penny stock provide some of the most exhilarating trades in investing. It's not all that uncommon to see a penny stock rise over 1000%. Just remember they can go down as well, but don't let that scare you away. With your straight forward investment style you can be in and out with tidy profits.

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==== ==== Please check out Trading Pro Edge System for great tips on Stock Market Trading for Profit. www.tradingproedgsystem.com ==== ====


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