Can you make money on Penny Stocks?
Yes, you can! However, the amount of money you earn in a penny is proportional to the amount of homework you do and the amount of discipline you have. Penney stock is one of the most volatile investments you will ever put in a dime, which can be surprisingly fast gain, or even faster crash. So, if you plan to trade pennies, you have to be willing to monitor your investment in the market time and sell when you are profitable.
Remember all the notices, there are still good reasons to include a penny stock in your portfolio.
Reason for investing in Penny stock
As their name implies, they do not cost a lot, so you can build a significant position in the company with a relatively small amount of money.
Because you can have such a large amount of penny stock, you do not need a stock stock to see a huge profit price to get a substantial profit. Every time you have a penny of a million shares, the price of the stock rises by a penny, your position will increase the value of $ 100.
Stocks are not just gambling if you take the time to research them. You need only to educate yourself on certain aspects of the company you want to invest in; pay special attention to the industry in which the company operates; the expertise and reputation of the company's management and the market acceptance of the company's products or services; the trading patterns of the company's stock in the past;
You can find brokers to trade your stock, but you will pay a commission that is greater than the amount of money in the larger exchange . Your broker will fill your trading order so you do not have to monitor your stock so closely but his commission will eat up your profits or increase your losses
Penny stocks make up for the daily trading in the US Percentage of all stocks. More than three-fifths of the Nasdaq, more than three-quarters of the NYSE trade is Penny Stock this huge liquidity means you almost never have difficulty getting your stock order filled in
For those who try to understand them, a penny stock is a worthy investment, and there is a discipline to leave the crowd