close
Some Considerations You Need to Take Into Account Before You Walk Away With Any Penny Stock Fortunes
Everyone wants to invest these days but it’s so difficult knowing where and how to invest correctly for our individual needs. The first thing to consider is risk tolerance. Couples with kids, a home or both will have to weigh their expenses carefully against their income and determine how much they can afford to invest.
Considerations like age come into play, the older you are the closer you are to retirement, which means these investments could be your only source of income and therefore have to be low to medium risk. Also important to consider is how liquid your investment capital needs to be.
In case of emergency you may need to dig into your nest egg and if it’s tied up in investments you can’t (or shouldn’t) sell right away then that could cause serious problems.
Younger people who are single and have no children of their own tend to have less overhead and more disposable income. Putting some of that income into high risk / high reward investments isn’t such a bad idea, if done with some research, care and general smarts.
High risk / high reward investments are also worth exploring for folks who have enough investment capital available that they want to allot a portion of it to such investment opportunities. One of the most popular ways to get starting learning to handle these kinds of investments are penny stocks.
There have been plenty of penny stock fortunes made. GM, Ford and even Xerox were once penny stocks and anyone who owned their stocks during their climbs to the top undoubtedly made a lot of money. Anyone can be the next penny stock millionaire, but it’s not without risk.
Penny stocks are terrific starting points for new investors because they are something of a microcosm for the stock market, only dark and a bit more dangerous. Penny stocks by definition have very low price per share of the companies they represent, which makes them attractive to investors who only have (or only want to risk) a small chunk of a money to invest.
They are also traded over the counter (OTC) though, which means they are not subject to the rules and requirements for accounting procedures and general business conduct that companies that trade on the exchange are. There are some general pitfalls any new penny stock investor needs to know to watch out for.
Because of the typically low trading volume, penny stock prices can fluctuate fairly easily when there is any sort of interest in the stock. That makes them very profitable for day trading but it also means they can be easily manipulated by scam artists. Protect yourself by never taking free stock tips from strangers.
Because Pink Sheets (.PK) traded stocks have absolutely no listing requirements, there are sometimes businesses set up to defraud investors. Avoid.PK stock unless you have a tip that is unimpeachable. Even OTCBB stocks are only required to report once a year to the SEC, so always do your research and know about the companies you buy before you buy them.
It’s not uncommon for penny stock fortunes to be made overnight, but many people go into the penny stock market and lose money too. It’s crucial to do your research and spend your money wisely. If you treat it like gambling, you will have gambling type results (which is to say, the house will usually win, not you). If you proceed with caution and choose your investments wisely, you could do very well indeed.
Greg Perkins is a fellow Stock Market Investor who provides information for those who would like to get started in penny stock investing. For more great information on penny stock fortunes, visit http://www.PennyStockAnswers.com [http://www.pennystockanswers.com/penny-stock-fortunes/]
Tags: Account, Before, Considerations, Fortunes, Penny, Stock
View this post on my blog: http://stocktips.valuegov.com/some-considerations-you-need-to-take-into-account-before-you-walk-away-with-any-penny-stock-fortunes/
全站熱搜
留言列表
