These stocks tend to have a rapid rise and fall all in one day. For investors that are around to catch this change it is possible to make quite a bit, especially due to the cheapness of the stock. With a stock under $5 it is easier to purchase more shares. For example, stocks that trade for $400 can take all a small investor’s capital with three or four shares.
In order to trade Canadian penny stocks you will need to consider a stocks track record. How well has it performed? Most stocks offer a balance sheet, cash flow and income statements. Before you purchase a stock you should complete your research and take these few tips below to help you.
Your portfolio can trade less than $1, as long as you set it up for that type of trading. For investors in the US there is also the matter of exchange rates and figuring out whether you can afford the exchange into the Canadian dollar. At the moment there has been significant growth in the Canadian dollar compared to the US dollar.
The best stocks on the market will be those from the energy and oil, mobile communications, minerals and metals. Right now these stocks are doing well throughout the world, and there are many still on the growth list working their way up to be more than $5 per share.
Like any investments you have to consider what industries are performing well and then find the investment that has yet to break out to a new peak. There is also the matter of the ten week rule in which you should consider how many peaks a stock has had and how long it has maintained its current median pattern. A flat stock after ten weeks of a continued uptrend may be ready to break out again.
If you are unsure how to trade basic funds, you should definitely consider finding help from a professional broker before you trade Canadian penny stocks. A broker spends their days looking for the next big investment. They are also well versed in how the market works. On their suggestion you should be able to find common ground investments that increase your portfolio.
There are definite risks with investing. You have to go into the market willing to lose a little of your capital in order to succeed. How much you lose depends on the help you have in picking the correct Canadian penny stocks.