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Penny Stocks & Frequently Asked Questions From New Traders

Penny Stocks FAQ For New Traders
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New To Penny Stocks? Your Questions, Answered

Look, we aren’t born experts on the topic of penny stocks. But we have all seen a lot of things involving these cheap stocks. I’m sure plenty of new traders have questions they want to ask before buying these highly volatile stocks.

With so much that has happened over the last year since the pandemic, penny stocks have gotten more attention. That’s likely due to a few different factors. First, many of the leading names in various industries fell victim to the COVID-19 sell-off. You saw companies like Hertz (NASDAQ: HTZ), Party City (NYSE: PRTY), GameStop (NYSE: GME), Chico’s FAS (NYSE: CHS), Nautilus (NYSE: NLS), Tupperware (NYSE: TUP), & countless others fall to the depths of penny stock territory.

It’s almost ironic in some cases. You’d likely get a mixed response if you asked someone if they traded penny stocks a few years ago. Some would say yes, while others would express their disdain for these cheap shares. They might even emphasize that they think penny stock companies are worthless.

But here we are, a few years after the pandemic sell-off introduced plenty of “traditional” traders and those who would never touch stocks under $5, paying close attention to them in 2022.

The rise of social media has also given a megaphone to retail traders. This is not in the traditional form of someone saying, “these are great stocks!” but instead in the form of market activity. The Reddit army descended upon the stock market this year and showed institutional funds that mom and pop investors could impact the markets.

Penny Stocks FAQ

Millions of new traders are learning how to make money with penny stocks right now. The significant difference between those who consistently profit and those who are inconsistent is how they treat these trades. What I mean by this is that hype can easily cloud someone’s trading strategy because penny stocks have the potential to rise to meteoric levels. If you’re new to the market or looking at how to day trade, starting with the basics is essential.

So let’s break down some of the more frequently asked questions when it comes to learning about penny stocks for the first time:

What Are Penny Stocks?

According to the Securities & Exchange Commission or SEC, penny stocks are shares of companies that trade at $5 or less. Based on popular opinion, retail investors classify penny stocks as those that trade below $1 per share. No matter where you stand, the definition of penny stocks pertains to companies that offer cheap shares in the market.

Are Penny Stocks a Good Investment?

This is another question based on personal opinion. However, most will agree that penny stocks are high-risk investments and shouldn’t take up a significant piece of your long-term portfolio. Are penny stocks a good investment? As the sole decision-maker of your investment goals, it’s totally up to you. At the end of the day, you need to understand that the lower the stock price, the more volatility plays a role. 

penny stocks to buy faq

If a stock is trading at $1, a move of $0.05 equates to 5%. If a stock is valued at $0.10, a move of $0.05 equates to 50%. You be the judge. Warren Buffett’s strategy is to invest in companies that have an opportunity for growth and show firm value prospects. Most penny stocks are start-up companies with minimal (if any) revenue and speculative business models.

Does this mean you shouldn’t invest in penny stocks? Thanks to the pandemic, the “investment” approach of holding stocks for one year or more has paid off. This is not only for the companies I mentioned above but also for many others. While some remain penny stocks to this day, those shares have risen from under 10 cents to over $2 in many cases. Furthermore, we’ve seen plenty of companies with exposure to COVID treatments explode since the pandemic began. It all comes down to your trading style and how you handle risk.

Can You Make Money With Penny Stocks?

Yes, you can make money with penny stocks. How you make money depends a lot on how you trade. If you are greedy when a stock is up 100%, and you think it might run to 200%, you might risk losing your whole position.

If you have a set plan and take profit when stocks are up a certain percentage (some traders start at 20%), you’ll likely have better odds of capitalizing on smaller moves. Your trading strategy will determine your potential to make more (or less) money with penny stocks.

Novice investors tend to treat penny stocks like the lottery. They risk whatever they can to make money. But they don’t take into account an actual strategy. At the end of the day, if you treat penny stocks like a lottery ticket, expect to “win at stocks” just as much as you win the lottery. On a side note, if you win the lottery a lot, let me know; we got to talk.

Herein lies an interesting approach to day trading penny stocks. It’s called a tier trading method and involves buying and selling in different tiers. Let’s say you have $1,000 you’re willing to allocate to a particular stock. You might take a “starter” position with 25% of your total allotment; in this case, $250. If the trade begins working in your favor, the strategy suggests taking a 40-50% bulk tier or around $500 in this example. As the trade continues working in your favor, you sell off a portion of your position, and you might buy back in as the stock moves further in your favor. This allows traders to stay in winning trades longer.

It also allows to cut out of losing trades quicker with minimal monetary loss. Let’s say the trade didn’t work out after tier 1. Now you’re taking a percentage loss on $250 instead of $1,000. You not only avoided a losing trade, but you also protected your capital by adjusting to this type of trading strategy.

Are Penny Stocks Risky?

Penny stocks are risky by default. Most companies with stocks trading at low levels have risky business models. They likely have minimal to no revenue, and their growth prospects are typically slim.

However, when it comes to the “long-shot” play, penny stocks are like Rocky Balboa against Ivan Drago when they hit it big. Though some penny stocks like FNMA and FMCC are government-backed, it doesn’t mean they are any less risky than other penny stocks. Keep this in mind.

How Do You Buy Penny Stocks?

When it comes to buying penny stocks, it’s as easy as a few clicks of your mouse. Find the stock you want to buy on your broker’s platform, open up an order form, enter your share amount, and click the ‘Buy’ button.

Compared to the old days of buying stocks, you no longer need to do it by phone. Today, you can open up an account at ETrade, TD Ameritrade, Robinhood, Charles Schwab, Interactive Brokers, or several other online brokers to sell or buy penny stocks. Something to keep in mind is: how quick is my trade execution, and what fees are involved with buying penny stocks?

Many times these two things can be different. The “no fee” structure means you have to give up other things like faster trade execution when it comes to free penny stock trading platforms. Compared to ETrade, free platforms may execute trades slower. Needless to say, buying penny stocks isn’t as hard as one might think. Choosing which stocks to buy, however, can be.

Why Penny Stocks?

These are just a few of the most frequently asked questions about penny stocks. Ultimately, you need to ask yourself why you’re looking for penny stocks in the first place. Is it because of the high-risk, high-reward mentality? Maybe it’s because you saw something in a movie.

day trading penny stocks

On the other hand, maybe you’re a pro at trading, and penny stocks give you opportunities to take small sums of money and turn them into big profits. No matter what you think about penny stocks, the fact remains: companies go public to raise money and, in doing so, offer up opportunities for investors to make money.

The class of cheap stocks regarded as penny stocks have become a mainstay for those looking to invest smaller capital with the hope of more significant returns. At the end of the day, it’s up to you to decide on your own strategy and determine if penny stocks are right for you.

Some other topics you might be interested in learning about penny stocks:

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The post Penny Stocks & Frequently Asked Questions From New Traders appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Are Voters Recoiling Against Disorder?

Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super…

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Are Voters Recoiling Against Disorder?

Authored by Michael Barone via The Epoch Times (emphasis ours),

The headlines coming out of the Super Tuesday primaries have got it right. Barring cataclysmic changes, Donald Trump and Joe Biden will be the Republican and Democratic nominees for president in 2024.

(Left) President Joe Biden delivers remarks on canceling student debt at Culver City Julian Dixon Library in Culver City, Calif., on Feb. 21, 2024. (Right) Republican presidential candidate and former U.S. President Donald Trump stands on stage during a campaign event at Big League Dreams Las Vegas in Las Vegas, Nev., on Jan. 27, 2024. (Mario Tama/Getty Images; David Becker/Getty Images)

With Nikki Haley’s withdrawal, there will be no more significantly contested primaries or caucuses—the earliest both parties’ races have been over since something like the current primary-dominated system was put in place in 1972.

The primary results have spotlighted some of both nominees’ weaknesses.

Donald Trump lost high-income, high-educated constituencies, including the entire metro area—aka the Swamp. Many but by no means all Haley votes there were cast by Biden Democrats. Mr. Trump can’t afford to lose too many of the others in target states like Pennsylvania and Michigan.

Majorities and large minorities of voters in overwhelmingly Latino counties in Texas’s Rio Grande Valley and some in Houston voted against Joe Biden, and even more against Senate nominee Rep. Colin Allred (D-Texas).

Returns from Hispanic precincts in New Hampshire and Massachusetts show the same thing. Mr. Biden can’t afford to lose too many Latino votes in target states like Arizona and Georgia.

When Mr. Trump rode down that escalator in 2015, commentators assumed he’d repel Latinos. Instead, Latino voters nationally, and especially the closest eyewitnesses of Biden’s open-border policy, have been trending heavily Republican.

High-income liberal Democrats may sport lawn signs proclaiming, “In this house, we believe ... no human is illegal.” The logical consequence of that belief is an open border. But modest-income folks in border counties know that flows of illegal immigrants result in disorder, disease, and crime.

There is plenty of impatience with increased disorder in election returns below the presidential level. Consider Los Angeles County, America’s largest county, with nearly 10 million people, more people than 40 of the 50 states. It voted 71 percent for Mr. Biden in 2020.

Current returns show county District Attorney George Gascon winning only 21 percent of the vote in the nonpartisan primary. He’ll apparently face Republican Nathan Hochman, a critic of his liberal policies, in November.

Gascon, elected after the May 2020 death of counterfeit-passing suspect George Floyd in Minneapolis, is one of many county prosecutors supported by billionaire George Soros. His policies include not charging juveniles as adults, not seeking higher penalties for gang membership or use of firearms, and bringing fewer misdemeanor cases.

The predictable result has been increased car thefts, burglaries, and personal robberies. Some 120 assistant district attorneys have left the office, and there’s a backlog of 10,000 unprosecuted cases.

More than a dozen other Soros-backed and similarly liberal prosecutors have faced strong opposition or have left office.

St. Louis prosecutor Kim Gardner resigned last May amid lawsuits seeking her removal, Milwaukee’s John Chisholm retired in January, and Baltimore’s Marilyn Mosby was defeated in July 2022 and convicted of perjury in September 2023. Last November, Loudoun County, Virginia, voters (62 percent Biden) ousted liberal Buta Biberaj, who declined to prosecute a transgender student for assault, and in June 2022 voters in San Francisco (85 percent Biden) recalled famed radical Chesa Boudin.

Similarly, this Tuesday, voters in San Francisco passed ballot measures strengthening police powers and requiring treatment of drug-addicted welfare recipients.

In retrospect, it appears the Floyd video, appearing after three months of COVID-19 confinement, sparked a frenzied, even crazed reaction, especially among the highly educated and articulate. One fatal incident was seen as proof that America’s “systemic racism” was worse than ever and that police forces should be defunded and perhaps abolished.

2020 was “the year America went crazy,” I wrote in January 2021, a year in which police funding was actually cut by Democrats in New York, Los Angeles, San Francisco, Seattle, and Denver. A year in which young New York Times (NYT) staffers claimed they were endangered by the publication of Sen. Tom Cotton’s (R-Ark.) opinion article advocating calling in military forces if necessary to stop rioting, as had been done in Detroit in 1967 and Los Angeles in 1992. A craven NYT publisher even fired the editorial page editor for running the article.

Evidence of visible and tangible discontent with increasing violence and its consequences—barren and locked shelves in Manhattan chain drugstores, skyrocketing carjackings in Washington, D.C.—is as unmistakable in polls and election results as it is in daily life in large metropolitan areas. Maybe 2024 will turn out to be the year even liberal America stopped acting crazy.

Chaos and disorder work against incumbents, as they did in 1968 when Democrats saw their party’s popular vote fall from 61 percent to 43 percent.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times or ZeroHedge.

Tyler Durden Sat, 03/09/2024 - 23:20

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The…

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Veterans Affairs Kept COVID-19 Vaccine Mandate In Place Without Evidence

Authored by Zachary Stieber via The Epoch Times (emphasis ours),

The U.S. Department of Veterans Affairs (VA) reviewed no data when deciding in 2023 to keep its COVID-19 vaccine mandate in place.

Doses of a COVID-19 vaccine in Washington in a file image. (Jacquelyn Martin/Pool/AFP via Getty Images)

VA Secretary Denis McDonough said on May 1, 2023, that the end of many other federal mandates “will not impact current policies at the Department of Veterans Affairs.”

He said the mandate was remaining for VA health care personnel “to ensure the safety of veterans and our colleagues.”

Mr. McDonough did not cite any studies or other data. A VA spokesperson declined to provide any data that was reviewed when deciding not to rescind the mandate. The Epoch Times submitted a Freedom of Information Act for “all documents outlining which data was relied upon when establishing the mandate when deciding to keep the mandate in place.”

The agency searched for such data and did not find any.

The VA does not even attempt to justify its policies with science, because it can’t,” Leslie Manookian, president and founder of the Health Freedom Defense Fund, told The Epoch Times.

“The VA just trusts that the process and cost of challenging its unfounded policies is so onerous, most people are dissuaded from even trying,” she added.

The VA’s mandate remains in place to this day.

The VA’s website claims that vaccines “help protect you from getting severe illness” and “offer good protection against most COVID-19 variants,” pointing in part to observational data from the U.S. Centers for Disease Control and Prevention (CDC) that estimate the vaccines provide poor protection against symptomatic infection and transient shielding against hospitalization.

There have also been increasing concerns among outside scientists about confirmed side effects like heart inflammation—the VA hid a safety signal it detected for the inflammation—and possible side effects such as tinnitus, which shift the benefit-risk calculus.

President Joe Biden imposed a slate of COVID-19 vaccine mandates in 2021. The VA was the first federal agency to implement a mandate.

President Biden rescinded the mandates in May 2023, citing a drop in COVID-19 cases and hospitalizations. His administration maintains the choice to require vaccines was the right one and saved lives.

“Our administration’s vaccination requirements helped ensure the safety of workers in critical workforces including those in the healthcare and education sectors, protecting themselves and the populations they serve, and strengthening their ability to provide services without disruptions to operations,” the White House said.

Some experts said requiring vaccination meant many younger people were forced to get a vaccine despite the risks potentially outweighing the benefits, leaving fewer doses for older adults.

By mandating the vaccines to younger people and those with natural immunity from having had COVID, older people in the U.S. and other countries did not have access to them, and many people might have died because of that,” Martin Kulldorff, a professor of medicine on leave from Harvard Medical School, told The Epoch Times previously.

The VA was one of just a handful of agencies to keep its mandate in place following the removal of many federal mandates.

“At this time, the vaccine requirement will remain in effect for VA health care personnel, including VA psychologists, pharmacists, social workers, nursing assistants, physical therapists, respiratory therapists, peer specialists, medical support assistants, engineers, housekeepers, and other clinical, administrative, and infrastructure support employees,” Mr. McDonough wrote to VA employees at the time.

This also includes VA volunteers and contractors. Effectively, this means that any Veterans Health Administration (VHA) employee, volunteer, or contractor who works in VHA facilities, visits VHA facilities, or provides direct care to those we serve will still be subject to the vaccine requirement at this time,” he said. “We continue to monitor and discuss this requirement, and we will provide more information about the vaccination requirements for VA health care employees soon. As always, we will process requests for vaccination exceptions in accordance with applicable laws, regulations, and policies.”

The version of the shots cleared in the fall of 2022, and available through the fall of 2023, did not have any clinical trial data supporting them.

A new version was approved in the fall of 2023 because there were indications that the shots not only offered temporary protection but also that the level of protection was lower than what was observed during earlier stages of the pandemic.

Ms. Manookian, whose group has challenged several of the federal mandates, said that the mandate “illustrates the dangers of the administrative state and how these federal agencies have become a law unto themselves.”

Tyler Durden Sat, 03/09/2024 - 22:10

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate…

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Low Iron Levels In Blood Could Trigger Long COVID: Study

Authored by Amie Dahnke via The Epoch Times (emphasis ours),

People with inadequate iron levels in their blood due to a COVID-19 infection could be at greater risk of long COVID.

(Shutterstock)

A new study indicates that problems with iron levels in the bloodstream likely trigger chronic inflammation and other conditions associated with the post-COVID phenomenon. The findings, published on March 1 in Nature Immunology, could offer new ways to treat or prevent the condition.

Long COVID Patients Have Low Iron Levels

Researchers at the University of Cambridge pinpointed low iron as a potential link to long-COVID symptoms thanks to a study they initiated shortly after the start of the pandemic. They recruited people who tested positive for the virus to provide blood samples for analysis over a year, which allowed the researchers to look for post-infection changes in the blood. The researchers looked at 214 samples and found that 45 percent of patients reported symptoms of long COVID that lasted between three and 10 months.

In analyzing the blood samples, the research team noticed that people experiencing long COVID had low iron levels, contributing to anemia and low red blood cell production, just two weeks after they were diagnosed with COVID-19. This was true for patients regardless of age, sex, or the initial severity of their infection.

According to one of the study co-authors, the removal of iron from the bloodstream is a natural process and defense mechanism of the body.

But it can jeopardize a person’s recovery.

When the body has an infection, it responds by removing iron from the bloodstream. This protects us from potentially lethal bacteria that capture the iron in the bloodstream and grow rapidly. It’s an evolutionary response that redistributes iron in the body, and the blood plasma becomes an iron desert,” University of Oxford professor Hal Drakesmith said in a press release. “However, if this goes on for a long time, there is less iron for red blood cells, so oxygen is transported less efficiently affecting metabolism and energy production, and for white blood cells, which need iron to work properly. The protective mechanism ends up becoming a problem.”

The research team believes that consistently low iron levels could explain why individuals with long COVID continue to experience fatigue and difficulty exercising. As such, the researchers suggested iron supplementation to help regulate and prevent the often debilitating symptoms associated with long COVID.

It isn’t necessarily the case that individuals don’t have enough iron in their body, it’s just that it’s trapped in the wrong place,” Aimee Hanson, a postdoctoral researcher at the University of Cambridge who worked on the study, said in the press release. “What we need is a way to remobilize the iron and pull it back into the bloodstream, where it becomes more useful to the red blood cells.”

The research team pointed out that iron supplementation isn’t always straightforward. Achieving the right level of iron varies from person to person. Too much iron can cause stomach issues, ranging from constipation, nausea, and abdominal pain to gastritis and gastric lesions.

1 in 5 Still Affected by Long COVID

COVID-19 has affected nearly 40 percent of Americans, with one in five of those still suffering from symptoms of long COVID, according to the U.S. Centers for Disease Control and Prevention (CDC). Long COVID is marked by health issues that continue at least four weeks after an individual was initially diagnosed with COVID-19. Symptoms can last for days, weeks, months, or years and may include fatigue, cough or chest pain, headache, brain fog, depression or anxiety, digestive issues, and joint or muscle pain.

Tyler Durden Sat, 03/09/2024 - 12:50

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