Penny Stocks: A Good Place to Start
Tuesday, February 23, 2010
If you are interested in investing in penny stocks you will need to find a broker. Finding a broker is helpful because the process of trading stocks can be confusing. It can be difficult to find a broker because they are all different but for the beginner investor using an online broker will work just find. Online brokers do not offer individual attention but the trade off is that you can check on your stocks 24/7. The fact that you can check on your stocks at any time is great because these stocks are quick movers. What is also great about investing in penny stocks is that you will only need a small amount of money, just enough to cover the price of the share which are under $5 and the brokers fee.
There are higher risks that come with trading these penny stocks. Since trading stocks like these people usually trade and sell by thousands of shares you can make lots of money or nothing at all if the stock does not raise in price. When you decide to sell the stock you own you simply inform your broker and they will sell. If all goes well you can make a lot of money.
Penny stocks are a great way to make some money but remember there are risks that come along with the potential profits. Knowing what you are doing and having a good online broker you can see some profit.
-M Petrone
http://PremiumPennyStocks.blogspot.com
Penny Stocks Risks to Avoid
Saturday, February 20, 2010
There are many people that are interested in investing in penny stocks. The reason penny stocks are getting a lot of attention is because they are inexpensive to buy and allows those people who can not buy stocks in the bigger market to get involved.
Since the prices of these shares are much lower it can be a dangerous place if you do not know what you are doing. It can be hard to resist in investing in stocks that are cheap but you have to always do your research. Buying without the proper knowledge can lead to huge problems. Penny stocks are not traded on the big market but instead are sold over the counter (OTC) or pinks sheets. Because these stocks are shares of small unestablished companies doing ones research in very important.
You also have to be absolutely sure of the sources you are using. There are many sites online that offer free information but some of it is fake. Always go with your instincts if you think its a scam it probably is a scam. If you do your research you can avoid these people and not hurt you chance of making a profit.
Many people think that if you start investing in penny stocks you will make money instantly, not true. Penny stocks do have a high potential of turning a profit but it takes time and it does not happen everyday. You should never get to comfortable although you can make a lot of money you can also lose a lot if you are not careful.
Although hiring a broker is a good idea never feel that you can not make your own decisions. If you research the companies well you should speak up and make the decision that you are most comfortable with.
There are risks that come with getting involved with penny stocks but the biggest mistake is investing money that you can not afford to lose. Penny stocks are a high-risk investment and putting up money you cant lose can lead to big problems. Only invest what you can afford in case you lose it. Penny stocks can be a great way to turn a small investment into a small fortune but never risk what you can't lose.
-M Petrone
http://www.RefinancingCondo.com
-M Petrone
http://www.RefinancingCondo.com
Penny Stocks High-Risk Investments
Penny stocks are shares of small companies that are usually sold for under $5 and sold over the counter (OTC), on bulletin board or pink sheets. Although some people only consider a stock a penny stock if it is bought for less than $1. Whatever one you go with the end result is very affordable stocks. These stocks are a bit more difficult because they are sold in less numbers than regular stocks.
Although investing in penny stocks is a great way to turn a little bit of money in a small fortune it does come with its own set of risks. Brokerage firms are required to inform investors of the risks that will be involved with this process. Since penny stocks are shares of small companies it can be difficult to find out information about the companies. There are also concerns when the stock falls in price, because the prices are so low even the smallest drop can be devastating. A share that was purchased for 10cents and falls 1 cent is a 10% loss. However the potential of a big profit is also much higher.
Another risk that penny stocks suffer from is the high potential of fraud. Since the price of shares are decided by the supply and demand rule inflation in prices are something that you have to look out for. Because the prices are so low it is possible for people to buy stocks a large number of stocks for a low price to increase the value and when it goes up because other people start to but it they sell right away to make an instant profit. There are also those who spread false rumors promoting their stocks in order to sell their stocks.
Penny stocks are a good way to make some money but it is not a for sure thing and thats what you have to keep in mind. The potential of turning a profit is great but this is a high-risk investment. Before getting involved with trading and selling penny stocks be sure you know what the process involves.
-M Petrone
http://www.RefinancingCondo.com
Make Money With Penny Stocks
Since the stock market is just beginning to recover there are more penny stocks that offer the potential for a large profit without having to invest a lot of money. The only difference between penny stocks and regular stocks other than the price is the fact that they are sold OTC and not on the bigger market. The main stock market requires the shares to meet a minimum price and those under $5 do not meet those requirements. When you want to start investing in these penny stocks you can find an online broker and make sure that they offer penny stocks. All the process of trading penny stocks is to buy low and sell high.
You do have to remember that becoming an investor of penny stocks is very risky but the profit potential is also high. These stocks have a reputation of being unstable however in a steady market it is possible to make a quick buck. There are many companies that are available for penny stock prices and since they were once a good company and have managed to survive the struggling economy they have a good chance of bouncing back to what they once were. This is the time to invest and buy stocks that can jump quickly.
Buying a few shares can make some money but if you are able to buy a thousand shares of a Fortune 500 company you might be able to make a fortune over the next year. This is possible because the market is in the process of recovering and there is no better time to start researching and investing in penny stocks that can double and even triple your money. Although there are many penny stocks available that will make you money there are also stocks that have no potential at all, but doing the proper research in the stock market you can turn a profit. You must also remember that the high reward does come with some high risks. You do have the potential to lose all of your money so invest wisely.
-M Petrone
http://PremiumPennyStocks.blogspot.com
What is a Penny Stock?
Monday, February 8, 2010
Penny stocks are shares from small companies that sell for $5 or less. These stocks are popular because of their potential high payout. Although they are less expensive they also come with their own set of risks. The penny stocks represent the small companies that are in America and have yet to be discovered. Small companies that have not yet been promoted enough but has a good concept can be a good company to invest in.
Most people shy away from penny stocks because of the risks that come along with it. Although these stocks are risker than others their rewards can be well worth it. There have been stocks of companies that have jumped from 25 cents a share to $20 a share. Companies that are now huge corporations like, Playboy and Ford, were at one time bought as a penny stock.
These penny stocks can be a great way to get into buying stocks because it does not require you to have a large amount of cash to begin with. Penny stocks have a great potential of turning your small investment into a nice profit. Not having to invest a large amount of money is great because you are not throwing in your life savings to get some good stock options.
Picking the right stock is a bit tricky and if you pick the wrong one you could just be wasting that money away. The stocks are difficult to pinpoint because of the lack of information on the companies and the risks involved.
These penny stocks are great to make money if you are a beginner in the stock market. You do not have to have a ton of money and you do not have to tie up your money on something you may not be sure of. Look into the stock market and find a company with some potential and buy a few penny stocks and watch your money grow.
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