Building a List of Penny Stocks to Watch
If you are fed up with Wall Street, there are several penny stocks to watch. Your return is just as likely with penny stocks. However, you don't have to stand by and watch all of the greed and corruption that comes with the bigger companies. This approach to investing is focused on small businesses and up-and-comers. These types of companies can even produce better returns than Wall Street in many cases. However, the penny stock market has its problems too so you have to invest wisely.
Penny stocks are risky, but so are the larger stocks, especially while we are suffering through a recession. Many stocks on the larger markets go as high as $50 / share. That means that $1000 will purchase 20 shares in one large company. If that company performs poorly, that investment will dwindle quickly. It's kind of like putting all of your eggs in one basket. However, on a penny market, that same $1,000 could be used to cover investment fees and still buy thousands of shares in multiple companies. If one stock performs poorly, your investment will still be safe.
Even the people who have the money to buy blue chip stocks are turning away from them. It's no wonder. In recent years the FEDs attempts to save the market have made it even more unstable and have driven stock prices down quickly. Add to that the constant news about another bank that got greedy and burned its customers or corrupt executives being sent to prison. When all is said and done, people just don't trust the big businesses represented by the stock exchanges.
On the other hand, the penny stock market is made up mostly of small businesses like the farm down the road or a family run oil company. They are good hard working people who make a living running the small businesses in this market. They general take their company public for one of three reasons: They need funding to expand their small business. They need a tax break and want to share their profits with employees or other people. Or they were scammed by a penny stock broker into a costly IPO and can't back out without losing their company.
This growth is usually slower than that of their large business counterparts, as is the growth of their stock value. However, overtime that growth can add up. Further, some companies on the penny stocks will grow naturally from a small business to a large player. Along the way, the value of the stock in the company will grow too. When this growth happens it's usually very quick. Sometimes it will plateau in as little 24 hours, so penny stock investors have to be prepared to sell quickly.
Just be careful when investing in penny stocks. These companies aren't as well regulated as the big boys on the stock exchange. Because of this lack of oversight, it's easy for people to game the system and make it look like a company is growing fast. When they do this, the stock prices rise. At some point in time, these scammers dump their shares at the new rate and walk with the cash. This can make your shares worthless overnight.
The ease of growth, honest values, and chance at rapid growth has created many penny stocks to watch over the years. These stocks can definetly produce stock exchange style returns without the same types of risk or the BS that comes with Fortune 500 companies. - 23159
Penny stocks are risky, but so are the larger stocks, especially while we are suffering through a recession. Many stocks on the larger markets go as high as $50 / share. That means that $1000 will purchase 20 shares in one large company. If that company performs poorly, that investment will dwindle quickly. It's kind of like putting all of your eggs in one basket. However, on a penny market, that same $1,000 could be used to cover investment fees and still buy thousands of shares in multiple companies. If one stock performs poorly, your investment will still be safe.
Even the people who have the money to buy blue chip stocks are turning away from them. It's no wonder. In recent years the FEDs attempts to save the market have made it even more unstable and have driven stock prices down quickly. Add to that the constant news about another bank that got greedy and burned its customers or corrupt executives being sent to prison. When all is said and done, people just don't trust the big businesses represented by the stock exchanges.
On the other hand, the penny stock market is made up mostly of small businesses like the farm down the road or a family run oil company. They are good hard working people who make a living running the small businesses in this market. They general take their company public for one of three reasons: They need funding to expand their small business. They need a tax break and want to share their profits with employees or other people. Or they were scammed by a penny stock broker into a costly IPO and can't back out without losing their company.
This growth is usually slower than that of their large business counterparts, as is the growth of their stock value. However, overtime that growth can add up. Further, some companies on the penny stocks will grow naturally from a small business to a large player. Along the way, the value of the stock in the company will grow too. When this growth happens it's usually very quick. Sometimes it will plateau in as little 24 hours, so penny stock investors have to be prepared to sell quickly.
Just be careful when investing in penny stocks. These companies aren't as well regulated as the big boys on the stock exchange. Because of this lack of oversight, it's easy for people to game the system and make it look like a company is growing fast. When they do this, the stock prices rise. At some point in time, these scammers dump their shares at the new rate and walk with the cash. This can make your shares worthless overnight.
The ease of growth, honest values, and chance at rapid growth has created many penny stocks to watch over the years. These stocks can definetly produce stock exchange style returns without the same types of risk or the BS that comes with Fortune 500 companies. - 23159
About the Author:
Looking for Hot Penny Stocks? Visit SmartPennyStock.Com and learn which Penny Stocks To Watch.
posted by X - Men @ 9:03 AM
0 Comments
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home