Trade Penny Stocks - A Newsletter

Here we will be discussing some of the basic question and answers about penny stocks. They are called shares of public companies. They are not actually like a stocks or shares in bigger blue chip organizations. These stocks generally get traded at lower price, around $1 for each. This helps all the new comers to dip their toe in this world of stock market and do some kind of investment.

Investing in growth stocks has got complete potential so that you can become rich and some lucky people have definitely made their fortune in this. This can be done with just one trade. But, this is very rare situation and you need to keep yourself disciplined. This will help you to check the stock investments and make the same as long term venture. Never consider this as a get rich quick kind of thing.

Now, next point is, is there any disadvantages of purchasing penny stocks? First thing you need some money to purchase this and everyone won’t be having extra amount with them. You can surely think on investing in shares. This can be great thing for you to make your next holiday planning better or purchase a nice new car or can plan for a superb retirement. But, you have to start with spending some money.

You should also have a system that can easily give you warning about selling your stock. Whether it is a correct time or not? Most common idea of this market is purchase at low price and sells at higher price. It looks very simple. But, if you are not having a proper system that gives a warning about its value when it will rise or fall, you will surely lose your money and don’t make any profit.

This trading of penny stocks is totally dependent on manipulation of market. There were many scams happened in the past related to this. There were people who have purchased vast amount of some company and inflated the market value. Then they have flooded the same market with shares and made a good profit. But, this was a biggest lost to small trader.

Keep in mind that it is not a good thing to invest money that we can’t afford or lose. If you are having your last $1000 and if you lose them too means you are going to lose your home. Never gamble in this market. If you are having some extra cash and if you have a plan to make some extra then go ahead.

Penny stocks are good and they can surely offer good amount in return for what you have invested. But, a rule of thumb here is to invest in correct companies. You should select your stocks wisely. Also, keep a nice system with you so that you can also save yourself from losses. At initial stage you can try to do investment with pretend money. Pick some basic stocks and keep a watch on them and their progress. If you make some profit from it then you can surely invest in real time money.