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How To Invest In Penny Stocks» How To Start Investing In Penny Stocks |
Quick Picks
August 5th, 2008: UOMO Media @ $0.39 Update: 2008.08.07 UOMO @ $0.47 = 21% gain! |
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We've all heard the stories of someone who has made a fortune by trading hot penny stocks. Is it that easy? Can you really make a lot of money by investing in small caps? The real answer is yes and no. While you can make better returns than investing in large caps, you are also putting more money at risk. That risk may lead to potentially to large losses. The term penny stocks generally refers to any stocks that trade outside the major stock exchanges and is taken as ‘deprecatory’. The major stock exchanges would include: NASDAQ, AMEX, or NYSE. The term Penny stock is also often used interchangeably with small caps and nano caps. The title of penny stock however should be determined by the share price rather than the listing service or market capitalization. The question that you need to ask is how much risk do you want to put your portfolio at? Our suggestion is to start by investing no more than 10% of your total portfolio value. Our second suggestion, is to follow the tips we have put together. The more you increase your risk, the higher the potential for failure, but the higher the potential for reward. If you want free penny stock picks, you'll want to sign up for the smallcap 360 newsletter. Our free newsletter features penny stocks listed on the TSX Venture, OTCBB and Pink Sheets boards. |
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