Penny Stock Investing Software – Should I?

Penny stock refers to stocks of a company that is traded for not more than $4.99. However, this is not a hard and fast rule. Besides, there are several other criteria, which are applicable, such as market capitalization of not more than $50 million. Such stocks are traded on obscure markets, like the Pink Sheets.

These stocks are very volatile and generally fall in the High Risk/High Gain category. As it is, chances of making quick money are relatively high in case of such shares. However, at the same time, you may incur huge losses as well. It is therefore advisable, that an investor should gain proper knowledge about this market, before you start investing in it.

These days, trading in penny stock has become quite popular. This is due to several reasons. First of all, since these stocks are so volatile, they tend to make bigger price moves in a very short period of time. Apart from that, they have higher upside potential in terms of percentage. Along with that, these stocks are relatively easier to acquire and with lower initial investment.

However, these stocks also suffer from a few disadvantages. One of the major disadvantages of these types of stocks is that the companies are not subjected to such strict regulation in terms of reporting, as in the case of blue chip companies. Apart from that, these companies usually do not pay any dividends as well. All these factors make it a risky investment. Your only chance is to ride on the wave of bull market scenario.

If you are a stock trader and you wish to invest in penny stocks, then stock investing software can be of great help for you. This is a kind of software, which can help you in stock trading, especially penny stocks. A stock investing software application provides you with stock market alerts. It tells you about your corpus and the current status of your portfolio, what stocks you are holding, along with their current status, etc. you can get these software application from various sources, especially internet. There are several websites on the internet, from where you can easily download these applications. Most of these applications are available for free. However, some websites may charge a fee; albeit with a free trial period.

While searching for such a stock investing software application, you need to do some research; after all, your hard earned money is involved. Study the applications, and see how effective they are. Know about their special features and these features help you in earning big money.