Most people, when they think of active trading, think only of day trading. In fact, there are several diverse ways to actively trade on the market. Each is distinct and takes a special skill set. Active trading is certainly more complex than passive trading or investing and is not, as they say, for the faint of heart.
Back in the day penny stocks were stocks that traded for less than a dollar per share. According to current Securities and Exchange Commission definition, penny stocks now include shares that trade below $5. Not many penny stocks trade on the main exchanges like Nasdaq or the New York Stock Exchange. Most trade over the counter via the OTC Bulletin Board or through what are known as pink sheets.
Investors have more choices than ever now that robo is reality. Robo-advisors, essentially algorithm-driven investing platforms, have entered the mainstream and join going it alone and hiring an adviser as the three main ways people can invest.
Experts and amateurs alike have been busy prognosticating as the new year unfolds. As a result, all, some or none of the items on this informal “watchlist” could come to pass. Don’t bank or invest based on any of this but do keep abreast of the news and developments as they happen to make sure you are not the last to know when events erupt.
When it comes to investing disclaimers, none beats the one that says, “Past performance is no guarantee of future results.” FINRA and the SEC require this disclaimer for a reason: It’s true. Past S&P index returns are a prime example.