What are penny stocks and how to make money from penny stocks today ?
Penny stocks are any
low price stock and promising stocks in the future. They are common shares
of small companies that are traded at
low prices. They often has low market capitalization because of their low
prices, in the united states any tocks
valued below $5 is a penny stocks , and are not listed on the national
exchange. In the United Kingdom, any stock valued below £1 is considered a
penny stocks.
Most stocks today started from penny stocks, all peak
stocks where once a penny stocks, they started from penny stocks. A unit stock of Berkshire Hathaway , a
company owned by warren buffet, one of the world richest man, goes up to $10
000 , this was once a penny stock. Microsoft was once a penny stocks, what does
that mean? , with time penny stocks of
today are going to be ’’top stocks’’. Penny stocks could turn in more than 200%
of original investment. One thing with penny stock is that they don’t cost much
but promise you good profits but trading penny stock could also make you to
lose money. see on private placement
penny stock is
speculative and highly risky but could turn you into a millionaire instantly,
for example in Nigeria in December 2006 eternal oil was selling at N2 just in two months time, it turn to N6, if
to say you were lucky to invest two million naira at that time, that two
million naira would have turn into six million naira just in two month. Making
a profits of up to 200% of your total investment for you, also Japan oil was also selling at
0.99k at that same time if you were lucky to buy that stock that time , you would have sold it at N2.74 in February, you would have made over 174% returns. Before picking a penny stocks look
for those with low volume of shares, with good management and good growth in
profits and turnover. Also to start making money in penny stocks today you have to put this into place.
·
Get a reliable stockbroker, a registered
stockbroker who knows the market of penny stocks.
·
Know how
much you are willing to invest into penny stock, more money means much risk but
also much potential profits.
·
Also know the aim of buying the penny stocks, is
it for short time or long time? Know how long you want to keep it or are you
just buying for capital appreciation.
·
Also check why the price of the stock is low, is
it due to lack of fun or mismanagement, if due to lack of fund go for it as investors will definitely find
it but it is due to mismanagement don’t
buy unless there is a change in the management.
·
Also the market capitalization is one of the
factors that attract investors into buy a stock.
·
Be watchful of penny stocks scammers, this are
investors that buy and promote the stocks, in doing so the price of the stock
goes up and immediately sell it off to reap profits.
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