Hi guys, so for the past six months I have been teaching myself Forex trading. In this time I have learnt a lot and begun to understand the foundations of fundamental and technical analysis. After looking into other methods of trading I have decided that Penny stocks or OTC stocks are appealing to me due to their high volatility and low share price – however after speaking to the top penny stock trading providers for example ETRADE it has become apparent that I can only use these brokers if I’m a United States citizen. So my question to you guys is what brokers can I trade penny stocks with here in the UK im looking for a broker with low commission fees and one that provides a good platform hopefully something similar to ETRADE Pro any of you experienced penny stock traders please help. Any assistance is greatly appreciated. Thanks again.
Do you realize that penny stocks are not stocks with a “low price”?
Do you realize that volatility does not impact the profit opportunities of a given financial instrument when position sizing is taken into account?
Do You Realize - that you have the most beautiful face?
Do You Realize - we’re floating in space?
Do You Realize - that happiness makes you cry?
Do You Realize - that everyone you know someday will die?
And instead of saying all of your goodbyes - let them know
You realize that life goes fast
It’s hard to make the good things last
You realize the sun doesn’t go down
It’s just an illusion caused by the world spinning round.
[QUOTE=“Arbitrager on Acid;673219”] Do you realize that penny stocks are not stocks with a “low price”? Do you realize that volatility does not impact the profit opportunities of a given financial instrument when position sizing is taken into account? Do You Realize - that you have the most beautiful face? Do You Realize - we’re floating in space? Do You Realize - that happiness makes you cry? Do You Realize - that everyone you know someday will die? And instead of saying all of your goodbyes - let them know You realize that life goes fast It’s hard to make the good things last You realize the sun doesn’t go down It’s just an illusion caused by the world spinning round. wtf do I know, I am an arbitrager on acid[/QUOTE]
How do u mean penny stocks dont have a low share price? Paying for example 20 cents a share is low??
When i take position sizing into account volatility still makes profit if followed in the right direction, im sorry you will have to expand on your methodologies.
I googled the song - kinda head trippy
Still need help finding a uk penny stock broker, anyone?
20 cents could be monumentally high for an equity. The price alone tells us nothing. A low price for an equity can be defined in two main ways:
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The price is such that a buyer of the equity can get a better return than on most or all other options in the market. The P/E ratio is a simple tool to quantify and compare equities on this basis. (fundamental analysis)
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The price is at or near a technical low such as a 52 week low or an all time low (technical analysis).
If 20 cents buys 1 cent per year in earnings in a penny stock and $200 buys $15 in earnings per year in a blue chip stock, the penny stock is more expensive than the blue chip. If a penny stock is at an all time high, it may not be considered cheap on a technical basis. It may be a great long trade at an all time high, but it would not be considered “cheap”.
If you were to consider trading one instrument or another, ABC and XYZ for example, and ABC is twice as volatile XYZ. You can simply trade twice the position size in XYZ as compared to that which you would trade in ABC. ABC does not give you the capacity to make more money simply because it is more volatile.
Detailed example:
ABC traded from a low of $10 to a high of $12 in the last 5 days.
XYZ traded from a low of $10 to a high of $11 in the last 5 days.
If you buy ABC and take a profit or loss of $2 a share on 100 shares you win or lose $200. If you buy XYZ and take a profit or loss of $1 a share on 200 shares you win or lose $200.
You can simply adjust your position size (in this case from 100 shares to 200 shares) to bring the impact of the trade on your account value into line with your goals. This means that volatility does not necessarily make a given instrument more or less attractive to trade.
Because of this, an arbitrager on acid chooses PSILOCYBIN.
Very trippy
Dude i understand and appreciate what your saying but due to the smaller size of my investing capital it suits me to by/sell more shares at very low prices,
As for that website, one word - wow 
Are you from the uk? If so can you recommend a otc broker?
I am in the U.S. Why don’t you just trade forex? You can do so with very little capital and get much more leverage. Plus the fees can be lower in forex.
I already trade forex and its not that awesome for me to be honest, iv seen a lot of success with penny stocks and want to try my hand at ot