Wall Street Crashing? Look to Penny Stocks for Help!
May 2, 2020
Out of all the different types of stocks that suffer from Wall Street crashes, some remain resilient. The stocks you want to invest in are the ones that can survive almost any kind of collision. If you feel like the world is falling around you, there’s one thing you can turn to:
While penny stocks often come with higher risk, they are sold for much less value. But it is still possible to get rich trading these smaller funds. Here’s how you can rely on penny stocks to keep you afloat during any major recession or crash.
More About Penny Stocks
The Securities and Exchange Commission regulates these speculative trades known as penny stocks, which is a unique type of investment opportunity. Penny stocks are meant for companies who are selling trades at $5 or less per share. While they are way smaller in number, they are still highly regulated. If you’re interested in learning more about how wall street works and how you can even end up getting a job there, you should visit wallstmastermind.com.
There are many different ways to define a penny stock, but according to Wall Street pros, you’ll know one when you see one. Usually, the price per share determines whether or not a trade would fall to the penny stocks.
Using Penny Stocks During a Stock Market Crash
You can trade penny stocks like you would any other kind of stock, but with the understanding that you are taking on more risk. Since penny stocks are sold in a much lower quantity, trades are made less often than other stocks. Therefore, you can’t quickly liquidate them like you would with any major stock trades.
Penny stocks also come from companies that aren’t as well-known and are more volatile on the market. However, since they aren’t as liquid, they hold their own against a stock market crash.
There are two ways to invest in penny stocks: you can do it through the OTCBB or Pink Sheets. Neither method has a minimum standard for remaining, so any company can use them. However, Pink Sheets have the extra perk (or pitfall, depending on how you look at it) of not requiring companies to file with the SEC.
Avoid Scams and Reap Big Benefits!
As long as you can be on the lookout for potential penny stock scams, you can use them to your advantage and continue building up your financial portfolio when times are tight. The best way to avoid fraud or manipulation is to do your research. Don’t take promotions at face value; instead, look at popular investing blogs or websites that can give you more information on the best penny stocks to buy into.
Remember that there is a difference between stock promotion and proper research into the equity of the penny stocks.
Manage Penny Stocks Your Way
Your entire portfolio shouldn’t be made entirely up of penny stocks, but it is good to have your eggs in several different baskets. Just be sure to take your time to conduct thorough research, evaluate the financials, and understand the quality of what you’re getting.
Penny stocks come with a higher risk because they are sold for much less value. However, they are an excellent way to get yourself a back-up for crisis times. While there are many different ways to define a penny stock, trusting your intuition, you’ll know one when you see one.
Do bear in mind, that penny stocks are sold in much lower quantities, and less often than “normal” stocks, and it is harder to liquidate them. If you do decide that penny stocks are the thing for you, there are two ways to start investing. One is through the OTCBB, the other through Pink Sheets. While you shouldn’t have your entire portfolio consist out of penny stocks, it can’t hurt to have your eggs in several baskets. Penny stocks might well be the thing that will carry you through the tougher times.