I’ve set up this website to help anyone who is wanting to learn about penny stock
investing and is not sure where to start.
What Are Penny
Penny stocks are those stocks that have a price per share of less than $5.00 but
some would argue that this number is lower.
Investing in penny stocks can be a great way to start out if you are learning as
you do not need a lot of start up capital however it is important that you only invest what you can afford to
Click Here to Access The Penny Stock
Determine Your Risk
Before starting to invest in penny stocks you need to decide if they are right for
you. This decision is based on your own assessment of your risk profile.
If you feel you have the capacity to be able to deal with great risk and in fact
you thrive in this sort of environment then penny stock investing is for you.
However if you have little spare money and are in a difficult financial position
then you are probably better off investing your money in more established stocks.
Again on the other hand if you have plenty of money but you don’t like taking
great risks then it is also best to avoid penny stocks.
So you’ve decided to
invest in penny stocks then you need to do some research in order to find suitable shares to
You will need to look at a number of factors when considering which company to
invest in. You will need to investigate the reputation of the company and its management, past history of the
company including company financials, profit and revenue streams.
This is referred to as fundamental analysis which is used to determine a company’s
The actual price that a company is trading at is a reflection of a combination of
market factors at that time but your research should identify what the company is actually worth.
If you can find companies that have good intrinsic value then you can greatly
minimise the risk of losing your money.
One thing you may be looking for by coming to this site is help on how to choose
which penny stocks to buy and I recommend this as a good starting point:
The Penny Stock
It is a fantastic site and can help you get started to ensure
a maximum return on your money when penny stock investing.
Anyway back to investing in penny stocks…
It is very important in particular when investing in penny stocks to diversify
your investments. That is not to put all “your eggs in one basket” even if you think you have solid information
that you think the price of the share will rise i.e. you know an announcement is due shortly that you think will be
favourable to the share price.
Things often do not turn out to plan and you could risk losing all your money on
Penny stocks often trade infrequently and can be quite illiquid making them
difficult to sell particularly if you are trying to sell a large quantity quickly.
It is this lack of liquidity that makes penny stocks volatile which is associated
with the greater risk.
Therefore if short term liquidity is going to be a problem then maybe penny stock
investing is not for you as it is much easier to buy and sell stocks that are traded on the more well known stock
To finish up penny stock investing does carry with it greater risks than other
conventional stocks. If you ensure that you do your due diligence and avoid over exposure to any one stock you can
make a good profit from penny stocks.
Penny Stocks and
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Having trouble finding profitable penny stocks to invest
If your answer is yes, then I strongly recommend you check out The Penny Stock Prophet. This will help you get started by developing your own penny
stock investment strategy, giving you regular updates about penny stocks to keep an eye out
for. Click here to check it out