Penny Stock Market
How Do I Get Started with Investing in Penny Stocks?
Investing in Penny Stocks
Investors who cannot afford blue chip stocks can still thrive at the stock market by investing in penny stocks. Penny stocks are essentially low-priced, small cap stocks, which may not necessarily cost a penny. For starters, the investment required is small and the rewards too good to ignore. For example, you can invest $2,500 to buy 10,000 shares at a price of $.25 a share. If the stock price rallies to $0.75, you will make a handsome $5,000 on top of your investment. This guide is helpful to stock trading beginners and investors who have continually made mistakes trading in penny stocks.
Getting Started
Penny stocks can be purchased in a number of places including …show more content…
stockbrokers and alternative trading service platforms. The downside of investing in penny stocks is the high levels of risk resulting from poor reporting standards and low liquidity. Here are 5 key strategies for investing in penny stocks for beginners:
1. Make wise investment decision: Since majority of companies offering penny stocks are low performers. Once you have decided to invest, make it a point to review the company selling the stock and the stock information.
2. Set goals: Set the goals that will help you gauge your progress. To do this, you need to ask yourself the following fundamental questions:
• How much money do you want to invest?
• How fast do you want to invest the money?
• How much are you willing to loose in a bad trade?
• What is your good trade threshold?
3. Invest in high volume trades: When you are investing in penny stocks, pick stocks that trade 100,000 shares or more a day. This will make it easy for you change your positions as the market demands. Because stocks that cost less than 50 cents and trade less than 100,000 shares a day can make it difficult for you to play the stock market efficiently.
4. Sell quickly: The biggest allure of investing in penny stocks is the promise of high returns that can be as much as 20 to 30% in only a few days. When this happens, sell quickly and move on.
5. Avoid short selling: Although the idea of selling ramped-up penny stocks can be highly rewarding, it is important to recognize that penny stocks are highly volatile and any wrong move can cause huge losses.
Summary
Getting the right information is critical when investing in the stock market. Before you make an investment; look for stocks that make money; check the accuracy of the broker’s calls and avoid investing with brokers that are broke or wrong. Reading through the stock disclaimer sent by stock promoters is also critical because of the high levels of risk
involved.
Investing in Penny Stocks
Investors who cannot afford blue chip stocks can still thrive at the stock market by investing in penny stocks. Penny stocks are essentially low-priced, small cap stocks, which may not necessarily cost a penny. For starters, the investment required is small and the rewards too good to ignore. For example, you can invest $2,500 to buy 10,000 shares at a price of $.25 a share. If the stock price rallies to $0.75, you will make a handsome $5,000 on top of your investment. This guide is helpful to stock trading beginners and investors who have continually made mistakes trading in penny stocks.
Getting Started
Penny stocks can be purchased in a number of places including …show more content…
stockbrokers and alternative trading service platforms. The downside of investing in penny stocks is the high levels of risk resulting from poor reporting standards and low liquidity. Here are 5 key strategies for investing in penny stocks for beginners:
1. Make wise investment decision: Since majority of companies offering penny stocks are low performers. Once you have decided to invest, make it a point to review the company selling the stock and the stock information.
2. Set goals: Set the goals that will help you gauge your progress. To do this, you need to ask yourself the following fundamental questions:
• How much money do you want to invest?
• How fast do you want to invest the money?
• How much are you willing to loose in a bad trade?
• What is your good trade threshold?
3. Invest in high volume trades: When you are investing in penny stocks, pick stocks that trade 100,000 shares or more a day. This will make it easy for you change your positions as the market demands. Because stocks that cost less than 50 cents and trade less than 100,000 shares a day can make it difficult for you to play the stock market efficiently.
4. Sell quickly: The biggest allure of investing in penny stocks is the promise of high returns that can be as much as 20 to 30% in only a few days. When this happens, sell quickly and move on.
5. Avoid short selling: Although the idea of selling ramped-up penny stocks can be highly rewarding, it is important to recognize that penny stocks are highly volatile and any wrong move can cause huge losses.
Summary
Getting the right information is critical when investing in the stock market. Before you make an investment; look for stocks that make money; check the accuracy of the broker’s calls and avoid investing with brokers that are broke or wrong. Reading through the stock disclaimer sent by stock promoters is also critical because of the high levels of risk
involved.