Penny Stocks: The Ultimate Guide to Safe Investments

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Penny Stocks The Ultimate Guide to Safe
Investments
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Heres your ultimate guide to safe investments in
penny stocks which have been increasingly
popular. Youll get to know what they actually
mean, what the associated risks are, and the
common scams investors find themselves trapped
into.
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What Are Penny Stocks?
Despite what the name implies, most penny stocks
do not cost just a penny. Or, youll hear that a
penny stock is any stock under 1. But thats
not entirely accurate either. In fact, any stock
at 5 or less is considered a penny stock.
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Benefits of Investing in Penny Stocks

• Theyre cheaper and can offer bigger returns than
  a 100 stock.
• you can invest small.
• real opportunities exist.

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Pitfalls of Investing in Penny Stocks

• Theyre highly speculative and can carry more
  risk.
• Some are low-volume, making it difficult to get
  in or out of a stock. In addition, theres not a
  great deal of regulation to protect you.
• In fact, some listings are unregulated, and can
  cost you a bit of money if you havent done your
  own due diligence.

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Plenty of Scams

1. Pump and Dump Scams
2. Guru Scams
3. Avoiding Scams

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How to Find Penny Stocks to Own

• One great thing about penny stock trading is
  that you probably do not need to look for a
  broker.
• Check penny stock listings on the OTCBB and Pink
  Sheets. Once there, start researching the
  companies on your own.
• Look up lists of the 10 best penny stocks and
  review.
• Do your due diligence. Is revenue and EPS
  improving quarter or quarter, year over year?
  Does it have manageable debt levels? Does it
  have a respectable team running the company? How
  has the competition fared? Is the company
  growing or hanging on by a thread?

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Are Penny Stocks the Right Fit For You?

• Its not for everyone. In fact, a good amount of
  patience is required. And many times, its worth
  it.
• To be a successful penny stock trader you must
  have
• Patience to wait for solid investments to come
  along and only solid investments.
• Discipline to stick with penny stock trading
  over the long haul.
• You have to be willing to leave your emotion at
  the door.

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• Penny Stocks arent Easy, But the Potential
  Payoff Can Be Impressive.

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