What Is a Penny Stock?

Trade Penny Stocks Introduction to Trading Penny Stocks
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Hey guys, Mubarak here of in penny stock. Hope you're doing well. I wanted to do a remake of the initial beginner modules that I had created almost a half decade ago. And just kind of update you guys. I've been working through the videos getting feedback. And even though I know a lot of you guys have probably been through the content, I just want to make it for any new people.

You know, the software's have been updated, the stock market is in an aggressive bull market right now, Trump's in the presidency, there's a lot of changes that have happened. And even though the general fundamentals are the same, and that's why my videos have been able to last so long. I wanted to just give a cool updated video of going over what are penny stocks, you know, why are they relevant in 2018, the pros and cons and some intro to some of the different software's I use. So if you're new to penny stocks, don't worry. This video is perfect for you to begin. So let me just go ahead and get started.

So a penny stock is any stock that's true traded on the stock market for under $5. That's generally, you know, the SEC definition and how people treat it. Now, the thing is, if you guys have watched Wolf of Wall Street, or if you guys have just heard of penny stocks, a lot of you guys might know people that got burned by trading or, you know, invested in a penny stock and lost their money. And I'll be able to explain exactly why that happened. And it's really just due to lack of carefulness and due diligence. So you know, a stock, and a penny stock is actually a piece of a company.

So as you can see here on the screen, right, this is a software that I use to take a look at the stock market right now, it's the reason these numbers are changing is because the stock market is live. I just made a nice profitable trade. So I thought I'd actually go ahead and help other people out. I mean, fundamentally, the stock market has changed my life and allowed me to engage in a life of comfort and flexibility that I never imagined without it. So I definitely want to This opportunity available to other people. And if it just consists of me teaching what I've learned over the last, you know, almost decade now of trading, both virtual and real trading, then I would love to do that currently have over 40,000 students and 125 different countries, eight different courses around the web.

So, you know, pretty much established in my teaching established in the feedback that we've built out in penny stock, but we'd love to just let you guys know more about the stock market. So as I was going on before, you can see that penny stocks are just a portion of different stocks. You see Netflix here, Facebook, Bank of America, a stock is a portion of that. And these companies, what they do is that they'll put a portion of their company up for sale in the public market, which is as you know, as a staff market, NASDAQ all the different kinds of exchanges that you must have heard of New York Stock Exchange, you know, all these different exchanges where people can buy and sell their shares of stock, don't know what this is, this is, oh, this is a real time connection. I'll go into that later.

You don't have to worry about that right now. But let me move this up, actually. So what we can do here is we can actually filter the prices so I can show you all of the actual stock prices that actually kind of fit into the penny stock world. So right here, and what I like to do is go into percent change just to see the amount of money that you can make and actually, let me put in another filter. One thing I'll let you guys know off the bat and you might not understand it if you're not into active trading, but I never trade sub penny stocks. Right?

Anything under one cent is a sub penny stock, and that's just too risky. So I usually filter it like this. But look at this. All these are all different penny stocks available for trade and if you had done If you implemented our strategy and if you traded them, right, this right here shows the amount of gain that you could have made or the percentage change in money. So essentially what this means is move this out. What this means is if you were to trade this stock today, Bank of America WTF CLB, which is probably an extension of theirs.

If you were to trade this stock, you and you say, You mess it $1,000 or $5,000, or any amount of money, even a few hundred dollars, you would have gotten a 68% gain on your money. And that's why penny stocks are insane, because in one day, you could almost double your money, you'll get 1.5 times your money. So if you were to make like 1000 it would come out to about $1,680 so you can make $680 in the span of this probably happened in just one day. Right though that type of money and returns you won't see anywhere else. And the way it happens is the resisting systematic manner of understand Learning how the stock market works, and what mechanics are going on. And that's what we teach at in penny stock.

And that's what this video series of videos I'm going to put out on YouTube on the penny stock podcast. That's what they're all going to be discussing. And so the good thing about it is the, because it's such a low investment, right, this stock is only 87 cents, or 85 cents. So you can purchase a large amount of it right, even if you have a few hundred dollars, you can purchase multiple shares of this, and you would have gotten this 62% gain. And look how many This is on a daily basis. This is just a normal day.

And actually, by the end of the day, there'll be even higher gains and runners and because we're in a bull market, it's an incredible kind of time to be involved in the stock market. And I'm going to break down for you in the future videos, what each of these means, what this software is, but I just wanted to give you a nice introduction into the world of penny stocks. And let me just before I end this Let me talk a little bit about why people are a bit skeptical of penny stocks. So before the movies, such as like boiler room and Wolf of Wall Street and all that, the reason penny stocks in general, you know, you'll be thinking why why does the government allow this, you know, what's going on with penny stocks. And the reason for that is because with penny stocks, what happens is they just lack regulation.

Right? So with public companies, Bank of America, Netflix, Amazon, Facebook, Google, all the ones you hear on CNBC, or, you know, those financial websites and TV shows, these are massive companies that are required to show transparently all of their financial statements. So every quarter, and almost every month, and every year, they're required to put out exact amounts of information on their financial statements on what the company is doing the risks, who's involved. So you can literally look at the annual report or the SEC word for it is 10 K, of a public company, and you'll be able to understand The entire business model, they lay out everything about the business, everything you need to know, everything that's good everything that's bad. everything related to the stock itself. And this is also just another great website for you to track stocks and cryptocurrencies.

But, you know, the most active stocks, Yahoo Finance, you'll be seeing this a lot of my future videos too. But in general, you know, the, the cons of it is that penny stocks don't have to release any information. They don't have to be transparent about their financial. And a lot of the times as you saw in Wolf of Wall Street, these penny stocks might not even be legitimate companies. They might just be small ideas for financing purposes, but the way that we hear it in penny stock profit off of penny stocks, is not because we believe in the idea never if there's one rule that you get away from watching these videos or anything, is I never believe in the story, the company the product of a penny stock. Alright, and Believe me, I'm a I'm an optimist, but just you got to be smart about this.

All of these penny stocks are just 99%. Okay, again, nothing is absolute 99% of these penny stocks are all just schemes. And you don't want to be involved in any penny stock scheme ever. But you can stand on the outside and look how it's traded legally on the public market and take advantage of the stock gains and declines right, and you can be part of these people that trade this isn't a penny stock, but here, these lower price stocks, you can make sure that you can take advantage of being involved in these gains. And with Penny stock trading, you know, you can do a mix of either day trading, which is you know, watching the screen from 930 to five 934 depending on whatever time zone you're in, on a daily basis. Or you can also do swing trading, which is where you hold the stock for maybe a few days, few weeks maximum, but all of these are short term trading.

In other videos, I'm going to talk About dividend stocks reads other, you know long term stock trading investment strategies. But today I just wanted to cover penny stocks, you know the pros, you know why they're important and relevant in 2018. And just the cons, you know why they have this stigma behind them. So hope you guys enjoyed this video. Again, I'm about to start doing a remake of all my prior videos just to update them. So if you're interested in learning more about how to trade stocks, definitely click the link below and you can get access to our full in penny stock video library, which actually let me showcase here for anyone who hasn't seen it.

We've done some renovations we have a great head of curriculum and content, so you can learn how to start investing in stocks and get coaching on it as well. So really great platform for you to be able to start trading, if it's something of interest to you. Fortunately, it's allowed me to change my life and hope that can be provided to you too. If you want more free videos, you can just go onto em pennies Calm and click on free videos. And there's a whole array of different videos. And we're also building out different software's.

But if you do want one on one coaching from me, click the link below, and we can start talking more about that. And finally, just want to give a appreciative shout out to Media Solutions, which is actually the marketing agency that we've been working with that is allowing us to operate in their studio. And so just gonna showcase that too. But again, this is Mubarak from em penny stock, and I'll see you guys in the next video. Take care

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