Most penny stocks are going to be off the major markets. This is because they usually do not qualify for placement for major market trading. There are some however who do manage to qualify and as a result end up on the Nasdaq penny stock list. These are usually stocks that have had a 5 year high of greater than $100. However, they are now selling for significantly less in fact penny stocks are called penny stocks because they are selling for less than $10 a share.
Most people may look at this and not consider them to be reliable or a good investment because they have gone from such a high share price to such a low price. This is something to consider but should not be something that holds you back from taking on the market. There are a number of people who make a substantial profit off the Nasdaq penny stock list. You do however, need to know what you are doing when you go to purchase and trade in these types of stocks.
The reason being is that they hold considerably more risk than most investments. In fact, they are actually considered to be a high risk investment. Of course, greater risk in the market usually means there is a greater chance in money being made. When you are looking at getting into trading stocks off the Nasdaq penny stock list there are a few things you may want to consider looking into in order to help in determining the best stocks to purchase.
With penny stocks one of the best ways to determine which stocks are going to be a worthwhile investment is to look at the penny stock newsletters. There are a number of these out there and what they are for is basically to provide a resource to investors who are looking to trade in this particular market. The type of information that is provided in these periodicals usually revolves around the analysis of movements within a particular set of stocks find more info on http://www.nas100brokers.com/volatility75index.html.