OTCBB Trading for Low Risk
The OTCBB market [Over-The-Counter Bulletin Board quoting service] is a centralized quotation system of unlisted stocks (stocks not traded on a stock exchange).
This financial market is operated by the National Association of Securities Dealers (NASD).
Well over 6000 companies are traded on this financial market.
Characteristics of OTCBB Market and OTCBB stocks: . . .
• Stocks are Traded just like any other stock in most cases.
• Not a stock exchange, so do not fall under their rules and review boards.
• Required to file timely financial and company reports with the U.S. Securities and Exchange Commission. So updated information is generally easy to find on OTCBB stocks.
• Shares of these stocks are generally thinly traded; so, may be difficult to buy and sell. This is not likely a problem in most cases for a trader who invests $15,000 or less per stock and has done his/her job screening stocks as an extraordinary investor.
Generally, stocks traded should have a market cap above $12 million and below $40 million and trade between 10 cents to $3 per share.
• Over half the stocks on the OTCBB Market are either victims of pump-n-dump schemes or are dud stocks. Not a problem for you if you screen stocks as an extraordinary investor.
And just because a stock will become a victim of a pump and dump scheme or even demoted by a stock-basher campaign does not mean the stock itself is a scam. Let their schemes work in your favor by investing in solid sleeper penny stocks at historically low prices. This site shows you how.
Make sure you study all the essential facts:
Finding information on these stocks is not usually any more difficult than for any other stock traded on the major exchanges because OTCBB stocks are required by the SEC to disclose business operations and submit financial reports on a regular basis.
Some good brokerage firms will restrict online trading of very speculative OTCBB stocks. In such cases, the penny stock trader must call the broker to place the trade. This is for your protection.
Do a complete fundamental analysis and technical analysis of every company of interest as this site is showing you. If you miss just one piece of vital information, you could be scratching your head later in disbelief and anxiety as your shares of stock lose value by the day.
The internet makes research so easy.
You are being shown how to do this with each page you read of this site. If you cannot find good information on a particular stock, my advice is to avoid it altogether. Why gamble your hard earned money when plenty of solid high potential sleeper stocks exist to study that have a history?
Accurate Complete Knowledge is VITAL!
When you feed your mind the knowledge necessary, then your mind has the input required to understand and measure a stock's potential. You will then have what it takes to effectively invest in penny stocks for huge profits while avoiding the risks. Realistically, you will earn some super handsome profits for your efforts.
Your rewards can be Very Great.
Precious gems can be found on the OTCBB Market. You already know the risks of OTCBB stocks and you know how to avoid them or take advantage of the risks of others if you have read all the information so far. Even so, such information will be built upon as you continue your journey on this site, and more so if you enter the Blue Button.
Many stocks delisted from the NASDAQ are traded on the OTCBB Market.
Not uncommonly, stocks on the OTCBB market or other OTC service were once traded on the NASDAQ or even on the NYSE or another stock exchange, but lost their status because they traded under $1.00 for too long and/or did not meet other qualifications. In actuality, such a company may be an excellent investment because of what the company has in development as a superior product with little competition.
The stock will likely plunge in value after being delisted and may trade well under $1.00 simply because the stock has lost the confidence and attention of a large number of investors. As well, lack of recent exciting news on development of their products will make traders even more nervous. Most of those traders who lost on this stock will go else ware to lick their wounds and trade.
Do not underestimate a company just because it was delisted from the NYSE or NASDAQ to the OTCBB market, but do not go and invest in it right away either.
Many investors lose track of these shining gems simply because they were delisted and they lost a great deal of money on them. These stocks will plunge in value to irrational levels within weeks of their being delisted.
The mistake is to avoid these stocks! Rather than avoid them, keep track of them and monitor them for explosive upside potential at some time in the future using the investment strategies that this site is showing you.
You have completed this lesson on the:
OTCBB Market - Trading for Low Risk HUGE Profits
When you are ready please continue onto the next lesson.
Pink Sheets Trading - Penny Stocks