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You only have to tell people that you are planning to invest in penny stocks, and watch out for the reaction. One group will be spontaneous in terming it as suicide. Apparently, these persons, would have "chanced their luck" in penny stocks one time or another, and made little success of it. On the other hand , the majority, more steeped in the conservative methods of investment, may wish you luck with mixed feelings. Thanks to heresay and media reports, who has not heard of the volatile nature of the penny stock trading and those who lost it all?
Yet, what escapes these people is that penny stocks have been here for the last 60-70 years, and in the ruins of these so- called financial mine fields the number of new millionaires just continues to grow.
Not surprisingly, Investing in penny stocks is now the most popular and quickest method to earn unbelievable profits in the financial markets. Mostly, investors step out on this journey intimidated by the thought of dealing in penny stock, only to discover that it far simpler than the Wall Street insiders would have wanted them to believe.
In principle penny stocks is all about small companies opening their doors to the public to raise modest sums of money. Whereas, this gives most people with limited money a chance to make quick profits, it helps genuine companies to consolidate their positions. At this stage of their infancy they have more to offer by way of promise, than products or prospects.
Sadly, a little bit of a good thing is seldom enough for a large group of people, so worthless penny stocks and disreputable promoters find their way into the unregulated penny stock trade. In this context investment is a form of speculation, so fictional companies emerge, worthless penny stocks are on display and swindlers are quick to exploit the investors greed. No wonder, now there is more governmental control to be seen.
Yet, if you view the present boom, it is apparent that few mature investors get discouraged by what they see or get to hear. If you are one of them get educated on how to research the best penny stocks and what financial criteria to look for in the new companies. Knowing when to buy or sell is one "essential" that can make or break your penny stock investing experience.
Your penny stock investing portfolio should not by any means exceed 10% portion of your overall investment due to the high market volatility. Set aside a fund ranging between $200-$2000 and avoid hiring a penny stock broker whose trading fee may cut into your earnings. There are excellent online brokers and unlimited information on the internet to promote your cause.
The secret often lies in undertaking just one well researched trade per week. Most people who tread carefully give up their jobs for an early retirement. What can be more satisfying than earning a decent living while working at home?
History has shown that when the economy moves out of recession, it is always the small-capital companies that lead the charge of wealth. Be a part of it while... you have the chance
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