New Traders Dos and Don’ts

New Traders Dos and Don’ts

August 6, 2018
|

Please do not start with OTC or pink stocks.  These are stocks that do not trade on the popular exchanges such as NYSE NASDAQ and AMEX.  OTCs are mostly traded for smaller companies that do not meet the criteria for a listing on the stock exchanges. They may also be referred to as unlisted stock.

Definition of a penny stock:  can be a stock that trades on the NYSE AMEX and NASDAQ with a price as low as 1.00 up to 5.00.  An OTC (Over The Counter) or pink stock can be priced below 1 penny and does not trade on the NYSE AMEX or NASDAQ.

Education is where you start with trading.  I recommend that a new trader not start out as a day trader right away, but start out instead as a swing trader (longer time holding period).