If you know anything about the stock market, then chances are that you’ve heard your fair share of cautionary tales as well. While it’s true that trading stocks can come with a lot of risk, it’s equally true that trading stocks can also come with a lot of gain. Some people have the money to invest, but shy away from buying stocks because they’re afraid of what might happen if those stocks plummet. But others are willing to take risks, but don’t have the capital that they need to get started. For those in the latter category, you might want to consider whether or not you might want to buy penny stocks.
One of the factors that contribute to the risk of investing in stocks is that you have to invest so much capital in your initial purchase. Big board stocks can be quite expensive, and if you want to see significant gains, you have to invest significant amounts. But if you buy penny stocks, you don’t have to invest nearly as much, as penny stocks must be less than five dollars per share. This allows you more room to diversify your portfolio and also makes stocks more affordable for those with less capital to invest.
When you buy penny stocks, you should keep in mind that this type of stock was never intended for long-term growth. If you stick around too long, you’re sure to get burned. But if you don’t stick around long enough, you may not make the most you can out of a good stock, thus wasting an opportunity. That’s why it’s so important to invest in a good stock picker or market alert. This way, you’re sure to be aware of what stocks to buy, when to buy them, and when to sell them. These are the three keys to success in trading penny stocks.
Penny stocks are traded through over-the-counter quotation services such as OTC Bulletin Board and Pink Sheets. Penny stocks differ from big board stocks in that you can purchase them directly from the company instead of having to go through a trading institution. If you think that you might want to buy penny stocks, then it might be worth your while to consider teaming up with a reputable and reliable stock picker. This is the best way to guarantee your success in the world of penny stocks, and to make the most of your investment.
When you think of significant events in the stock market, most people think about the most negative things: stock market crashes, bubbles bursting, and recessions. But there are plenty of positive events that happen on this industry as well. Some of the most memorable involve stocks that peaked quickly, making unheard-of profits for savvy investors who were able to foresee these meteoric rises in a stock’s value. This is just as true of the penny stock market as it is of big board stocks. There are a few recent examples of a penny stock listing that went from an everyday listing to a superstar in a small amount of time.
Force Protection, Inc. (FRPT) started out as a small penny stock, originally costing $1.41 per share. But a few market analysts saw the potential for great gain in this company and urged their clients to snap up as much FRPT stock as possible. It turned out that their hunches were correct when FRPT began to grow more and more. This stock grew in value 57.40% in the last twelve months. Few stocks have ever grown to this degree in such a short amount of time, and anyone who paid attention to this penny stock listing is sure to be a richer man today for it.
Another penny stock listing that saw an incredible rise in its stock value over a short period of time was CCTC, or Clean Coal Technology, Inc. This company is dedicated to developing technologies that reduce the impact of generating coal for energy on the environment. It looks like investors believe in their cause as well because, in a short time, the stock in this company shot from being a penny stock worth less than five dollars per share to a megastock worth over twenty dollars a share.
But perhaps the most amazing story belongs to Fresh Harvest Product, Inc. (FRHV). FRHV not only rose in value by 72% but it did so in the mind-blowing timeframe of a mere week. That was an amazing turn of events from FRHV’s investors and many fortunes were made that week. Some fortunes may also have been lost by those who dawdled and either didn’t get in there in time or got in so late that the value deteriorated before they got in. There are plenty of amazing stories about amazing stock performance, and there are still more to come. It’s just a matter of finding your penny stock listing from heaven.
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I’m a 35 yr old data analyst (Shreveport, LA) that is diving headfirst into buying penny stocks. I prefer to work smarter and not harder, so I'll be basing this blog on finding the best penny stock picks. Why write a blog about it? Well, it's been hard for me to find good sources of information and totally uncensored reviews, so I thought I'd create a quick blog to help others out. A co-worker of mine has been making some serious, quick profits (3,000+) with minimal investment. I plan to do the same.
photo credit: James Jordan
