Penny Stocks And Their Potential
Have you ever wondered what a penny stock is? It sounds cheap enough and the investment is not great so losing would simply be an afterthought, or so one would think. Penny stocks are any stock that sells for less than $5.00 per share. The potential for gain with penny stocks are some of the best risks in the market.
There are risks to investing into any stocks and penny stocks are no exception. Most penny stocks tend to fluctuate in price drastically. There have been stories about great financial gain through penny stocks and those who invest in them are surprised when they cease to exist.
However, there are sound companies who have penny stocks that literally soar from a penny stock to $20.00 and $30.00 per share. One has only to research the companies with penny stocks to find a good one.
Penny stocks have a tremendous potential for reward because the larger firms and companies are no watching them. Most refuse to spend money on the research.
Investors are realizing very quickly that these penny stocks are the meat and potatoes of the new market. With so many large companies closing and laying off employees, it becomes a concern to invest in them. Penny stocks have nothing to lose and everything to gain. After all Microsoft was once a penny stock!
The best potential for a penny stock is the ability to gain a large amount of profits in a short period of time. A large company with a stock price of $50.00 per share would find it difficult today to double the stock price in a short period of time.
However with penny stocks the companies could see a double in the stock price rather quickly. It is not uncommon to see these stocks double their share price in days or weeks. That is where the large potential is.
There are many websites that will help you in your search for penny stocks. In fact “Yahoo’s Finance” has a stock screener and also allows you to track stocks that you may already own. The screener lets you put in a value for a stock you would like to purchase and other criteria for the stock and screens companies to find the ones that fits your needs.
Many penny stock holders rely on newsletters to keep them inform about penny stocks that are profiled. These are not the perfect system in researching a penny stock. Researching the stock on your own is highly recommended and may save you money in the long run.
There are risks to investing into any stocks and penny stocks are no exception. Most penny stocks tend to fluctuate in price drastically. There have been stories about great financial gain through penny stocks and those who invest in them are surprised when they cease to exist.
However, there are sound companies who have penny stocks that literally soar from a penny stock to $20.00 and $30.00 per share. One has only to research the companies with penny stocks to find a good one.
Penny stocks have a tremendous potential for reward because the larger firms and companies are no watching them. Most refuse to spend money on the research.
Investors are realizing very quickly that these penny stocks are the meat and potatoes of the new market. With so many large companies closing and laying off employees, it becomes a concern to invest in them. Penny stocks have nothing to lose and everything to gain. After all Microsoft was once a penny stock!
The best potential for a penny stock is the ability to gain a large amount of profits in a short period of time. A large company with a stock price of $50.00 per share would find it difficult today to double the stock price in a short period of time.
However with penny stocks the companies could see a double in the stock price rather quickly. It is not uncommon to see these stocks double their share price in days or weeks. That is where the large potential is.
There are many websites that will help you in your search for penny stocks. In fact “Yahoo’s Finance” has a stock screener and also allows you to track stocks that you may already own. The screener lets you put in a value for a stock you would like to purchase and other criteria for the stock and screens companies to find the ones that fits your needs.
Many penny stock holders rely on newsletters to keep them inform about penny stocks that are profiled. These are not the perfect system in researching a penny stock. Researching the stock on your own is highly recommended and may save you money in the long run.