Penny Stock Trading May Be an Alternative to Forex Traders


Learn why Forex Traders should also try trading with Penny Stocks. More and more traders are looking at this type of stock. Understand how it works!

The Forex trading with CM Trading remains one of the best ways to do trading and live trading, however, because Forex Traders are prepared psychologically and technically, to analyze charts, open and close fast orders, the stock market niche, better known as penny stocks, may be a viable alternative. The good news is that with 500 Euros or 500 dollars it is possible to negotiate this type of actions and it is not necessary to live in the USA.

To understand what penny stocks are, how they work, how to find and how to trade, we decided to talk about this increasingly popular subject, so you know everything, through traders with many years of trading experience. Beware of the fake traders, who say they do live trading, but they do live trading by deceiving people. In this environment there are many scoundrels. Stay tuned.

What are Penny Stocks? How to do trading?

The penny stocks as the name implies, are all shares of cents, you can find good penny stocks using penny stock screener, that is, shares that are worth less than $1. The explanation about what penny stocks are is simple.

With the evolution of the financial markets, the US regulator started to consider all penny stocks, all stocks below $5, since this type of speculative stocks can rise or fall a lot in a few hours, going from cents worth some dollars.

Unlike Forex, which operates 24 hours a day from Monday to Friday and has no pauses, the Stock Exchange operates Monday through Friday only from 9:30 a.m. to 4:00 p.m. in New York time and most of the opportunities appear precisely in the first two hours.

To trade with penny stocks, the 1 minute and 5 minute charts are used because they are very volatile stocks. To understand the volatility in this type of actions, just say that in less than 1 minute can rise 20% or more.

To do trading with penny stocks it is important to know that there are many brokers available, however, most of it is a bad choice for two reasons: bad platform and commissions too high. So that you do not waste unnecessary time, there is a search for a broker to negotiate penny stocks, we recommend that you use one of the most used brokers, we are talking about CMTrading.

A good trading platform is essential for trading penny stocks and it has one of the best, uses the CM trading platform.

Once you open a account, all you have to do is start finding penny stocks, Forex trading and making money on the upside or downside.