1 0 Tag Archives: penny stocks
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Why Risk on Penny Stocks?

Some people who have not heard of penny stocks before, may assume that penny stocks is a stock investment that literally involves the exchange of pennies, or in other words, cents. Some others who may have heard a bit of information would define it as common stock trading for under $5. While both definitions are still acceptable, we will describe it as “any company trading through the ‘over the counter market.”

“No pain, no gain” is what people expect in this type of business. There is an abundant number of investments one might want to be involved in. Micro cap investing has proved to be one of the most worthwhile enterprises. It has the potential of acquiring big profits in only a matter of time. Penny stocks are unpredictable and it is common for stocks to either move upwards or downwards by 25%. The nature of its uncertainty makes the business very promising and very crucial. So why should you be investing any at all? Answer is quite simple with a bit of philosophy: “the more risks you take the more rewards you are posed to gain”. If you want to play safe, then this is not fit for you.

If you’re asking whether it’s worth investing on penny stocks or not, the answer depends on how you are going to deal with it personally. Sure you may encounter a lot of frustration and pressure but if you are dedicated and persistent enough to learn about how penny stocks behave, then chances are, you may be doubling or tripling your money in a month.

The primary requirement you need to have in order to get started is a brokerage account. Find a reliable brokerage service and have an account opened. Each time you sell or purchase a stock, a small fee is deducted to your account by your broker. Usually, the service will walk you through to how you get started. For starters, it is highly suggested to invest a small amount of money you can afford to lose. Losing the money at stake will not make your business suffer. If you successfully find a winning bid, your investment will grow at a small rate but the experience you gain from there will be a lot.

I can not stress enough the need to be consistent in here. Keep in mind that when you purchase penny stocks, it’s not like dividend investing where you can buy and forget, instead you’ll need to make sure to follow them for the next days, weeks or even months. Speak with the company’s point of contact and check for new products, research as to what product they have advantageous over other stocks you find interest in or simply inspect who their rivals are for information.

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31. May, 2011
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How To Triple Your Investments In Hours

Penny stocks are typically a focus of day traders given how quickly they move and the profit potential behind them. The largest hurdle which you have to contend with to find the best cheap stocks on the market is differentiating between those which are set for upswings and the rest, and here is a new method millions of traders regularly use to triple their investments in hours by finding the best cheap stocks on the market.

As the technology continues to improve, more and more stock investors are beginning to turn to and rely on analytical stock programs to find the cheap stocks on the rise. These are programs which are now available on a consumer based level which are modeled after the same as those used by professional traders in the major trading houses. They are so popular because their method of their method of anticipating market behavior is incredibly effective.

Specifically it’s a method known as stock behavioral analysis and comparison. What this means is that it looks for overlaps between past and present stocks. Stock market behavior is very specific and unique, so finding even the smallest nuances and overlaps between two stocks can tell you everything you need to know about what you can expect in the short-term. It’s difficult picking up on these overlaps as you need to take the full range of the market into account, hence the popularity of these programs which are able to do just that.

Having not had a great deal of experience with penny stocks up until that point, I began checking in on that stock eventually every 30 minutes or so when the market opened the next day. It’s a great feeling to see cheap stocks on the rise while being invested in them as it continued to climb and finally top off at $.48 a share before getting to topple down again. I ultimately more than tripled my initial investment when I got out and was overjoyed, my only regret being that I didn’t invest more at the time initially. That’s not to say that every stock pick behaves as quickly or appreciates this much, but it shows you how effective and potentially profitable cheap stocks are.

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26. Feb, 2011