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Monthly Archives: August 2013

Investing In Penny Stocks

Investing In Penny Stocks

Investing in penny stocks can be a rewarding, albeit risky, venture. “Penny stocks” is a term used to describe stocks trading for under a dollar per share. Penny stocks are traded in “over-the-counter” (OTC) exchanges. They’re not traded on major exchanges, such as the NASDAQ or New York Stock Exchange. With these exchanges, stock prices and volume information is continuously reported and updated. When investing in penny stocks, such information is not readily available.
In fact, investing in penny stocks yield almost no information to the average investor. Usually, only brokerage houses have access to daily lists called “pink sheets.” Sometimes, newspapers publish prices for investing in penny stocks, but the number of stocks listed is only a fraction of the many available. Not only that, these published prices may not reflect the actual price that someone investing in penny stocks would pay.
When investing in penny stocks, watch out for potential scams and schemes that might cloud your judgment.
For example, some brokerage firms tout the stock’s past performance as a selling point. However, as a typical prospectus warns, past performance is not necessarily an indicator of future returns. Even if the past performance is accurately and honestly reported, the way the stock reached the numbers being reported might have been through dishonest methods. One of these methods involve a person or group buying up a large order of penny stocks, hype it up to make it attractive to investors, then sell it to the investors at an inflated price. The investors who fall for this scheme then own stock that is almost worthless.
Investing in penny stocks may subject you to some high-pressure sales tactics. You might be the subject of telemarketing calls. At first, the telemarketer or broker will try to befriend you so that you’ll let your guard down. They’ll call back in a week or two, informing you about a potentially hot stock that’s about to blast off. Their next call after that is to close the deal, telling you that any delay in investing will cost you in profits. They will try to convince you that they have some kind of insider information that isn’t yet available publicly. They might tell you that today’s price is below-market and for a limited time. They might advise you that there are limited amounts of stock available at the low price. Do not fall for any of these tactics.
Like other types of stock, penny stocks can pay off when you buy low and sell high. Unfortunately, investing in penny stocks can subject you to fraudulent and dishonest practices. When you know what to look for and keep a level head, you can make a better decision and hopefully find a winner that can give you a nice return on your investment.

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Penny Stocks: Are Penny Stocks Too Risky?

Penny Stocks: Are Penny Stocks Too Risky?

The term “high-risk investment” sounds scary, doesn’t it? This phrase alone is enough to put many investors off. After all, no one wants to take a risk. The trouble with buying any kind of stock (high-risk of not) is that it’s always a gamble. But how do you decide when a stock is just too high-risk, for you?

There is a lot of information floating around on the Internet about penny stocks. Almost everyone with an e-mail address has gotten spam at some time or another, touting a penny stock as the next great investment. Sadly, much of this information is geared toward scamming you in some form or fashion, and it’s likely that you will lose all of the money that you put into the stocks advertised in this fashion. But that doesn’t mean that all penny stocks are bad deals, that you will lose money every time, or that every single penny stock is a scam. In fact, far from it. Some penny stocks might be very good investments, indeed.

Tip: Establish a list of criteria to look for in a company before you buy any shares. Your gut instincts are able to help you out a whole lot.

Penny stocks are affordably priced shares in companies or businesses that are considered “small,” as opposed to big corporations. There are not many shareholders involved in penny stocks, making them less “liquid” than many other types of stock. The goal of investing in penny stocks it to part with very little money initially to enjoy a big return later on. Does it work this way? It does, sometimes, just not all the time. For those who know what they’re doing when they’re investing in penny stocks, they can be a great investment tool. Mastering the art of trading in penny stocks can be tricky, however.

For one thing, penny stocks don’t trade on the major stock exchanges. Rather, penny stocks are known as “over the counter” investments, listed on Pink Sheets and the OTCBB. This makes penny stocks rather unique, and somewhat harder to find for many investors. Penny stocks also don’t trade very regularly, so sometimes investors have very little time to act. Because trading does not occur often with penny stocks, there is always the fear of being unable to sell one’s shares of penny stocks and winding up with a bad investment. This is all part of the risk of trading in penny stocks, and many investors think this makes the game all the more challenging. When you invest in penny stocks, you should receive monthly updates that let you know how your stock is doing.

So, are penny stocks too risky? The only person who can decide that is you. Some investors find that penny stocks aren’t too risky, but others do. It’s all a question of how much gambling with your money you want to do, how much you know about penny stocks, and how lucky you feel. If you think investing your money in penny stocks is a good idea, then it probably is. Everyone has a different opinion on penny stocks. Learn more about them, and form your own.

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Penny Stocks: Are Penny Stocks Legal?

Penny Stocks: Are Penny Stocks Legal?

They don’t trade on the main stock exchanges. They have not been approved by the SEC, but nor have they been disapproved by the SEC. They are labeled as a high-risk investments. Very little is even known about them, and they’re often used in Internet e-mail spam scams. …Are penny stocks even legal to invest in?

Though they may sound scary and they may be unknown, even a little mysterious, there’s nothing illegal about investing in penny stocks. There’s a lot of information out there, a lot of it bad and much of even frightening, but investing in penny stocks doesn’t mean that you are breaking a law.

Tip: Be realistic. You are likely to be very disappointed if your expectations are to have double-digit returns each year.

It means you’re taking a chance, but there’s nothing illegal about that, is there? Yes, penny stocks are considered high-risk investments, but for a relatively small price investors can buy shares and (one hopes) turn around to make a large profit. This is the draw of penny stocks, what makes them compelling.

Also, when you buy penny stocks through a broker, you should get regular updates. Once a month, you’ll get information about your penny stocks and what their status is. This is something your broker has to do if you’ve invested in penny stocks, something that the broker is actually required to do. This lets investors track the progress of their stock.

Tip: Try to find a great investment service you can get connected with. You only need to subscribe to one if you find one that is of high quality.

The only trouble is, sometimes things happen very quickly in the world of penny stocks. These stock infrequently trade, and when they do trade they are not traded through the well-known and established stock exchanges. This makes is hard to both buy and sell penny stocks, so some investors are afraid of getting “stuck” with a stock that they can’t unload.

However, a stock’s risky nature doesn’t make it illegal, or even a bad investment. There are many things that are risky (like driving), but many people don’t let high risk stop them. In the world of stock investing, there is often risk involved. Perhaps penny stocks are considered riskier than some, but at the same time there is great potential to make a lot of money by investing in these penny stocks.

Tip: Companies with high returns are more appealing to investors, rather than ones with good management. Management changes hands often, while the economic competency of a company does not.

Penny stocks are low-priced, shared of companies that are generally on the small scale. These stocks are traded “over-the-counter” rather than on public exchanges, and this is why many investors know very little about penny stocks in general. To find more information about penny stocks, you can talk to your broker or do a little research in business journals and the like. There is information out there, and there are investment opportunities available. It’s just a matter of finding the rights ones for you.

If you’re considering an investment in penny stocks, it’s okay. Risky, yes. Mysterious, definitely. Potentially big? Sure. But illegal? No, not at all. At least right now, penny stocks are traded completely legally and under the guidelines of the SEC. Investing in these stocks can be a little exciting and a little dangerous, but you won’t wind up in jail.

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Penny Stocks Getting Started

Penny Stocks Getting Started Introduction to Penny stocks: Penny stocks are low priced speculative stocks and these stocks are traded in over the counter (OTC) market. As per SEC (The Securities and Exchange Commission of United States) the maximum p…

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Penny Stocks: Aren’t All Penny Stocks A Scam?

Penny Stocks: Aren’t All Penny Stocks A Scam?

Most Internet e-mail users have been subject to penny stock scams. There are more than fifty billion spam messages sent each day, and many of these mention investing in penny stocks. Spam isn’t a very reliable investment source, right? Does that mean that all penny stocks are, essentially, some sort of scam?

Penny stock scam is a sad fact of using the Internet. It’s possible for people to lose 8% of their investment when falling for these penny stock scams online. Often, these penny stocks do not exist or they do not exist at the advertised price. This type of scam is called a “pump and dump.” Yes, there are some scams on the Internet that center around penny stocks.

Tip: Learn about the stock market by watching what it does. Keeping track of the market before you decide to buy can help you know what you’re doing.

This does not mean that all penny stocks are a scam, or even a bad investment. There are some penny stocks that can make investors a good amount of profit, in fact…just not the ones you find advertised in spam. Stopping yourself from investing in those penny stocks is a great idea, but deciding never to invest in penny stocks of any kinds because of that may not be.

Yes, there are considered a high-risk investment, but it’s also possible to turn a pretty profit by using penny stocks. In most cases, there is a certain finesse needed to invest in these stocks, as they rarely trade and sometimes things happen with penny stocks very quickly. Investors have to know what’s happening all the time and be ready to make a move when needed – making penny stocks somewhat exciting and interesting to trade in. This is why some investors like them.

Tip: Stocks are more than just pieces of paper made for buying and selling. When you own some, you become a member of the collective ownership of that specific company you invested in.

Don’t let Internet scams scare you away. There are a lot of Internet job scams, too, where so-called “employers” offer to pay you lots of money to do something simple like answer surveys or surf the “Net. In many cases, these “job offers” turn out to be nothing but an Internet scam, and a clever ploy to try and get your hard-earned money. But you don’t let Internet job scams keep you from working – so don’t let Internet penny stock scams keep you from investing. That still means that the scam artists win, because they’re keeping you away from something.

To learn which penny stocks are potentially good investments and which are potentially bad, there’s lots you can do. Check the business journals and stock information, or ask a broker for more information and advice regarding penny stocks. There are good penny stocks out there, and there are investments out there where you can make a lot of money. By doing your research and looking into every possibility, you increase your chances of success in the stock market. And isn’t success what it’s all about?

If you’re interested in investing in penny stocks, you can’t let anything (even scams) stop you. Do what you want to do and invest your money where you think it’s best. After all, it’s your money and only you can decide what you want to do with it. Make the choice for you, not for any other reason.

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