Penny Stock Investments: Read before Investing

Stock market investments are an old and practiced by masses. Every investment is precarious, but investment in penny stocks (trading under $2.50) is much more risky as movement in these stocks is more volatile than A-grade or blue chip stocks. They are not only prone to stock market crashes, and can even crash due to non-performance of business. It is also true that majority of the penny stocks are worthless or are complete failures because of many reasons like their small size and poor management, lack of funds for expansion and more importantly lack of big investor’s interest. Hence, it is the need for investors to analyze these stocks before making your hard earned money invested in it.

Alternatively, many people find it more fruitful investing in penny stocks as favorable investment can multiply your returns. It is nearly impossible to get similar returns in A-grade/ blue chip stocks, as these small companies are growing in terms of their business and can give healthy percentage growth based on low base effect compared to big companies which are already matured in terms of business and can give only average growth in business. The stock price of prosperous company which has given favorable business growth over past three to four years can tend to increase by 80%, 150% or even by 200% to 350% within very short span of time.

The researchers need to make full analysis on the stocks before making the right choice. So, on an average, your stock selection must be intelligent enough to choose that single profitable penny stock out of 100 available stocks. Any wrong selection among can ruin your whole investment. Proper analysis on company’s profile, select penny stocks wisely balance sheet and its future business prospects can help you choosing the right stock for you. Read more about selecting penny stock wisely.

Penny Stock Investments Read before Investing

There are various sources to collect information and database regarding the companies. These are:

1) Websites: Not only company’s website, but also other websites related to stock market can be referred to get complete information about its business, financials or even its stock price performance in past.

2) Newsletters and Forums: There are various newsletters issued by websites and online penny stock forums can also be good source of collecting information. Make sure that you’ve included your email ID on a reliable website to avoid any issues. It is important to know that there are many fraud websites floating the false news about certain stocks to gain money. Investors should know the difference between right and wrong companies and make sure that they don’t get trapped with wrong companies for investment.

3) Customers Reviews: Reviews posted by customers about product, financials of company product and reviews can also be a good judgmental factor for any investor for selection of right stocks.

To summarize, Penny stocks are very risky trades but can be a positive changers for you, only if chosen wisely. Risks need to be taken for better earnings, but it is wise to choose the most appropriate methods for getting the higher ROI.

Penny Stocks need consideration

Penny stocks are the best investments only for the people who are ready to invest by fully researching and analyzing the stocks. The sad truth about these stocks is that there are many scams associated with them, which make these stocks non-reliable for many people.

Penny stock shares go dramatically wrong. However, there are some ethical companies beginning their business with penny stocks and these are most likely to get consideration from the ethical buyers. Penny stock investments can give better ROI to you only if you are selecting the right companies to purchase the stocks.

There are different companies floating penny stocks having a value less than $5 per stock. The people who own these shares can have thousands of shares in their pocket with a very little investment. You can understand the stats for right investment in penny stocks. If any stock goes to least level or gets too many ups and downs in a short span of time, it can be probably not good for investment. You can handle better money management by choosing the right penny stocks.

Penny Stocks need consideration

It is feasible to invest in the right direction by making your personalized research. There are many results available online, but you need to select the right direction and most importantly, the correct companies for making investment. Money management is an art and buying penny stocks with right approach can actually give you best results.

Buying penny stocks with a reasonable strategy can be good. There are so many companies floating stocks on pink sheets/ OTBCC and you can be a part of the race by following the most successful stocks. Get whole knowledge on penny stocks by following the best strategies and recommendations. Cheap is not always good, but evaluated companies might give you positive results for your investments.

Select Penny Stocks Wisely

Penny stocks are volatile and unpredictable. It doesn’t mean that they should not be purchased. There are 90% buyers who lose their money with these stocks and the reason is their poor selection of the companies in making investment. Best penny stocks to buy now are the ones having association with the right companies. You have to understand that before you think about penny stocks, it is possible to know about the most appropriate stocks to buy and invest your hard earned money at the best place. It is feasible to know about penny stocks online and the best way is to find out more about these investments before making any small investment.

Select Penny Stocks Wisely

Everything has a chance to go zero and so is the case with your wrong selection with penny stocks. On the other hand, your investments can go double or triple by investing in right stocks. Your decision about the selection of penny stocks is quite essential in bringing the best results in terms of investments. The stocks priced under $1 have the probability of getting to zero level very soon. These stocks are unpredictable and less certain than others. Read more about super cheap stocks at The best penny stocks belong to the small companies having a probability to grow with best business strategies and accumulation of finances from real people.

Your penny stock investments should have a fixed budget. By following this way, you will probably get lesser chances for losses and the money management can be done in the most desirable way. There are many websites offering free stock tips and it is very much possible that those sites follow scams. Most of the penny stocks don’t work due to the pump and dump scams associated with them. However, being a smart investor, your job is to find out the best company to make your wise move in investment field.

Super Cheap Stocks

Super cheap stocks are the penny stocks having a value less than $5 per share. You can’t resist making investment in these stocks as they are low rated and show ups and downs in a small period of time. If you think wisely about the concept, it will reveal that penny stocks are unpredictable and there is something fishy with them. Real world stocks having high value don’t get deviated very soon, but the case is different for penny stocks. You can’t get rich by making investment in penny stocks, but they will surely teach you to make investments.

Super Cheap Stocks

It is not worthless to invest in penny stocks. There are some reliable startup companies floating their stocks on pink sheets or Over-The-Counter platforms to inculcate money. However, investment in pennies can be very fruitful if your association goes on with the right companies instead of scam companies. Get to know more on pump and dump scams in penny stocks here. Your money management skills will improve with penny stock investments and in general, you will become aware about these super cheap stocks with fullest understanding of stock market in general. Don’t involve too much money and in the beginning, invest only $200-1000 to initiate your investments with penny stocks.

Just by looking at the per share value, don’t think that it will give you best results. You need to check out the whole facts about the company and its stocks to make the final decision. The undervalued stocks can go towards higher levels by full utilization of the stocks. Super cheap stocks are illiquid and not many shares of this category are traded on regular basis. You won’t be able to find a buyer for the stocks because not many people trust these stocks for investment. You can act smartly by making selection for the most appropriate companies.

The risk of investing in OTC markets is that they might have low quality and junk stocks and only a very few stocks have worth.

Pump and Dump Scams in Penny Stocks

Penny stocks are the most dangerous investments due to different scams and frauds associated with them. These have attained the bad status mainly due to pump and dump schemes linked up with the stocks.

Pump and dump is an unethical activity in which scammers purchase majority of shares of probably the self-created companies and then make full promotions to attract people for buying them. The share price goes up within a few days and as the stocks gain prices, the fraudsters sell off the shares, which cause collapse of share price. It leaves the stock worthless and unrecoverable. This pump and dump scheme is commonly followed in pink sheets or OTC stocks. The innocent investors get exploited by the fraudulent activity and unethical approach. Click here to know more about penny stock need consideration.

Pump and Dump Scams in Penny Stocks

Penny stock trading has attained a bad name due to such occurrences. There are many fraud companies ready to make scams for these stocks. You can identify such fraudulent companies by analyzing about them beforehand. Less information and quick decisions might not be good for penny stock investors. You can exactly follow the risk strategies to gather all information about the particular companies and make right and informed decision about investing in them. You can attain success by taking the money off from the victims of scam.

Penny stocks are not alike. There are a few companies floating the REAL stocks to gather money for a right usage. There are many low priced stocks (below $5), which have been floated on OTCBB or pink sheets and trade on security exchanges. Penny stocks include the stocks of some private companies having no active trading market. You can’t try your luck by going after the advertisements floated by promoters as there are many forum posts, blogs, FB posts and other marketing strategies followed by frauds to implement pump and dump scam.