Buying Penny Stocks - The Absolute Best Way For Beginners to Trade the Stock Market
Buying penny stocks has got to be the best way for a beginner to start trading the stock market.
For those that don't know what a penny stock is, its basically a stock that is traded on the over the counter market.
Sometimes they are called Bulletin Board Stocks.
Many people are quick to dismiss them as being disposable or that nobody cares about these stocks.
Well, that may be the case now, but I'm willing to bet if you took a look at a Fortune 500 list, you'd find a bunch of companies that many investors didn't care about when they were just an upstart.
It's easy to follow companies like Microsoft now that they are incredibly powerful, but the tougher part would have been to follow that company at its infancy stage.
You see, that's how the rich and successful get to where they are at.
They take chances on companies that most people don't.
Also, with buying cheap stocks, the great saying rings true: Buy low, sell high! Well, it's hard to buy much lower than small cap stocks.
Think of the potential risk to reward that's involved with buying penny stocks.
For example if you would invest in a 75 cent stock.
If that stock went up another 75 cents for the year to $1.
50, you have just doubled your money.
Think how long its takes stocks like Microsoft for them to get a 100% increase in their price? It takes a quite a long time, especially considering their is a limit to their growth.
For those that don't know what a penny stock is, its basically a stock that is traded on the over the counter market.
Sometimes they are called Bulletin Board Stocks.
Many people are quick to dismiss them as being disposable or that nobody cares about these stocks.
Well, that may be the case now, but I'm willing to bet if you took a look at a Fortune 500 list, you'd find a bunch of companies that many investors didn't care about when they were just an upstart.
It's easy to follow companies like Microsoft now that they are incredibly powerful, but the tougher part would have been to follow that company at its infancy stage.
You see, that's how the rich and successful get to where they are at.
They take chances on companies that most people don't.
Also, with buying cheap stocks, the great saying rings true: Buy low, sell high! Well, it's hard to buy much lower than small cap stocks.
Think of the potential risk to reward that's involved with buying penny stocks.
For example if you would invest in a 75 cent stock.
If that stock went up another 75 cents for the year to $1.
50, you have just doubled your money.
Think how long its takes stocks like Microsoft for them to get a 100% increase in their price? It takes a quite a long time, especially considering their is a limit to their growth.