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Tagged: Penny stocks
Usually penny stocks are traded in less volume and can be manipulated easily and may have a trouble in getting out.
PENNY STOCKS are those traded with low volume and hence liquidity will be a problem
MOREOVER low volume stocks can never be analysed(ie tech analysis is not adaptable)
APART from this such stocks are subject to easy manipulation
As the volume is less in the penny stocks it is not east to predict the demand and supply in the company.
these stocks trade with low volume so we cannot predict demand and supply and anyone can increase or decrease the price easily.
People avoid penny stocks because the risk is high almost 100%.
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