Fri 10 May 2013
How Penny Stocks Are Creating
Millionaires Every Day
You may have noticed a lot of buzz lately about penny stocks.
Penny stocks refer to the common stock of smaller public companies that trades for less than a dollar per share. Like other shares of stock, they are regulated by the SEC and other authorities, but instead of trading on the major markets like the NYSE, they trade on “over-the-counter” markets.
Today, penny stocks are offering smaller investors a great opportunity to earn significant up-side on their investments. The benefits occur for two reasons:
1. It doesn’t take a lot of money to invest in penny stocks.
For the price of just one share in large companies such as Apple or Google, you could buy thousands of shares in many penny stock companies.
2. Penny stocks have the potential for huge returns.
Because the price per share is so low, they can experience huge price increases – sometimes even doubling or tripling in just one day. Price jumps like this do not often occur with larger companies, but are much more common with penny stocks.
Another great thing about penny stocks is that they trade in exactly the same way as shares of larger companies. You can easily track price movements and buy and sell online, or through a traditional broker.
While there is always risk in owning shares of publicly traded companies, the amount people tend to invest in penny stocks is relatively small, so in those instances, if the price of the stock drops, investors do not lose significant amounts of money.
But, with thousands of different penny stocks to choose from, how should you go about finding the right ones to invest in?
One website that is exclusively devoted to tracking and recommending penny stocks is Billionaire Stocks. The site tracks the market for these high potential companies, and then alerts its subscribers with the latest picks.
Much of the ability to recognize a return depends upon when you purchase or sell the penny stocks, and these results are not typical or guaranteed. In some cases, where a promotion ends, the stock prices can go back down to their original amounts – so you have to be diligent with your investment and monitor your trading activity closely.