Why Penny Stocks?

Why Penny Stocks?

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This is a question I get a lot:

Why Penny Stocks?

For most people penny stocks never cross their minds. They are quite comfortable with the funds in their 401k and they simply stay away from any other kind of investing.

Let’s talk about how to pick penny stocks and why penny stocks can achieve significant gains:

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Starting with how to pick penny stocks, you need to decide if you want a fully reporting company or a non-reporting company. That is one of the keys I always look for. A fully reporting company can more often be trusted to keep you up to date to stay in compliance with the securities laws and regulations. Plus, you see audited financials done in accordance with the law. I non-reporting company can publish anything and call it a “financial report.”  I have seen many that could have no basis in reality.

Then decide what priced penny stock you want. Do you want a sub-penny stock that has a potential to create huge swings in value if it goes your way?  Or huge losses if it does not, of course.

Perhaps you want a top penny stock trading for a dollar or more? Sometimes those are more stable in price

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Why Penny Stocks?

  • Potential for huge gains if it swings your way.
  • You can buy penny stocks online through your favorite broker in most cases.
  • You can own a lot of shares of a penny stock for less money, and this could potentially make it profitable for you.
  • You can find that trading penny stocks online is great entertainment. While some people make a living at trading penny stocks online, others do it simply because of their love of learning about companies big and small.

Suggestions:

  • Find a great penny stock newsletter.
  • Learn how to buy penny stocks online.
  • Find a quality list of penny stocks – (See: Where to Find Penny Stocks)
  • Learn how to pick penny stocks through your online brokers stock screener.

Once you learn how to invest in stocks, you will be a step ahead of about 90% of our country. Most people never own a share of stock for a single company outside of a mutual fund in an IRA or other such account.

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