There are thousands of stocks that are traded are the major indices and a good portion of them are penny stocks.
They're the same as any other stock in regards to being a percentage of the the total value of the company.
The reason they're called penny stocks is because the value of each share is worth less than one dollar.
Some investors feel they are any stock valued at less than five dollars.
To new or average investors they think along the line as to that they can buy more shares of a penny stock than they could with a blue chip stock.
If you have Thousand dollars to invest in one company, you could buy twenty shares of a company whose share price is $50, but you could also buy 2500 shares that are valued at $0.
40.
Most large cap companies have already grown so much that it's highly unlikely that the stock price will double, but as for a penny stock, it could increase in value by more than 1000%.
Take into consideration that most penny stocks won't grow by that much.
Typically most penny stocks never grow large enough to not be considered one, but how do you know which one to buy to assure that your portfolio will increase.
There is no clear cut system to pick the sure winner.
Companies struggle constantly to find new investors to help keep their company in business, so unless they are fundamentally sound or that the technical charts show you signs of a near future pop, it's not an easy thing to do.
If the company doesn't have the right product or the right leadership, they will most likely stay where they're at.
Instead you might want to invest in small cap companies that have a more of a proven record and still leaves a lot of room for some great gains.
I look for stocks that are valued between $6-$20 per share.
In doing so I've been able to weed out many of the weaker companies to help minimize the risk involved, while still having some good opportunities to make large profits.
Before you buy any shares of a company you must do your research to see if the company is doing the right thing to help the company grow.
Read their financial reports, quarterly earnings report as well as their balance sheets.
Learn to read chart to help you see when a company may stand a chance of a large volume day that will increase the value of their shares.
These are the things to take into consideration if you're looking to trade penny stocks.
They're the same as any other stock in regards to being a percentage of the the total value of the company.
The reason they're called penny stocks is because the value of each share is worth less than one dollar.
Some investors feel they are any stock valued at less than five dollars.
To new or average investors they think along the line as to that they can buy more shares of a penny stock than they could with a blue chip stock.
If you have Thousand dollars to invest in one company, you could buy twenty shares of a company whose share price is $50, but you could also buy 2500 shares that are valued at $0.
40.
Most large cap companies have already grown so much that it's highly unlikely that the stock price will double, but as for a penny stock, it could increase in value by more than 1000%.
Take into consideration that most penny stocks won't grow by that much.
Typically most penny stocks never grow large enough to not be considered one, but how do you know which one to buy to assure that your portfolio will increase.
There is no clear cut system to pick the sure winner.
Companies struggle constantly to find new investors to help keep their company in business, so unless they are fundamentally sound or that the technical charts show you signs of a near future pop, it's not an easy thing to do.
If the company doesn't have the right product or the right leadership, they will most likely stay where they're at.
Instead you might want to invest in small cap companies that have a more of a proven record and still leaves a lot of room for some great gains.
I look for stocks that are valued between $6-$20 per share.
In doing so I've been able to weed out many of the weaker companies to help minimize the risk involved, while still having some good opportunities to make large profits.
Before you buy any shares of a company you must do your research to see if the company is doing the right thing to help the company grow.
Read their financial reports, quarterly earnings report as well as their balance sheets.
Learn to read chart to help you see when a company may stand a chance of a large volume day that will increase the value of their shares.
These are the things to take into consideration if you're looking to trade penny stocks.
SHARE
