What Is So Attractive About Penny Stocks?
Topics: penny stocks, best penny stocks, penny stock picks
Why in the World would someone invest in a stock that is only worth a small fraction of a dollar? Simple, the potential for return is great even if the company being invested in does not have a great product or service. Most companies that go public do have something of value but that does not necessarily mean great gains.
You see investing is part intelligence and part following the hype. A great company does not necessarily mean a great investment unfortunately. Penny stocks are no different. You follow the hype and you profit if you time your investment right. I same time it right because the hype can fade just as quickly as it was created.
So we are attracted to penny stocks because they are exciting. The possibility of earning 200,000 dollars from an investment of 1000 dollars in a stock with shares initially priced at .005 and now worth 1 dollar is very exciting. Its rare to come across those kind of gains and stocks already price well in the dollar range.
There have been many fortunes made with penny stock investments both legal and illegal, which brings up another point. Beware of unscrupulous penny stock promoters looking to make a quick buck. They will tell you a stock is hot and quickly sell the shares they owned in that company after you have just invested. However, there are trustworthy promoters and they should be taken serious.
Of course exciting things usually come with their risks. However, if your risk tolerance allows for penny stocks to be an investment option then go for it. No one can blame you for being excited about a stock that has the potential to bring exponential returns.
There will always be an attraction to penny stocks so long as there are stories of people gaining a windfall of cash from a relatively small investment. Making 100 percent or more on your money is hard to ignore.
On a side note, never invest more than you are willing to completely lose. You certainly do not want to lose all your money just because of the excitement of investing. Never beleive that any stock is a sure thing. Play with the houses money.
Penny stocks have a lure that no other type of stock has. Its not just a matter of being worth pennies on the dollar but also a synergistic energy that comes from the stock market as a whole whenever any kind of attention is directed toward a penny stock.
So go ahead and have some fun with some money you can afford to have fun with.
Scott Johns conducts research and analysis of stock market picks and trends. To check out some of his company’s latest picks go to thequarry.net
Previous Articles Highlighter:
A Career As A Clinical Nurse Specialist (1)
A clinical nurse specialist works in a specific area and uses all her theoretical and clinical experience to help patients. These nurses play different roles as per the situation.
Operational Accounting For Small Business (2)
I was always puzzled at how small business owners could get away with running their business without even using Quicken or QuickBooks. I figured it out. Most small businesses grow so fast that some of us don't have the time to learn if not worry about the accounting side of the business.
Improving Educational Technology Helps Students Learn Faster And Better (3)
Topics: educational technology The image that the word "technology" conjures up changes with every new generation. A century ago, it might have brought forth images of spinning gears, factory smoke stacks, or electricity flowing through wires.
Student Loan Consolidation Info - What Are The Different Kinds Of Student Loans Available? (4)
If not don't let this stop you from getting the education you have dreamed of. Just simply look for alternative financing methods to assist you with your quest. Many programs are offered through special loan sources such as the Air Force Aid Society.
Is It A Risk To My Health Not To Get The Ducts Cleaned? (5)
This makes it important to take all needed precautions to ensure the best indoor air quality for ourselves and our families to safeguard against the potential health risks associated with indoor air pollution.
Stop Daydreaming About Having More And Grasp A Hen That Lays Golden Eggs (6)
Set Your Sights on the Stars To select which opportunity or opportunities to pursue, first set an objective for each of your breakthrough solutions. Make the objective neither too modest nor too aggressive.
How To Remove Dog Fleas The Easy Way (7)
This is a very effective way of getting rid of many of the pupae, larvae or eggs that may be lurking beneath the surface of your carpet. Do this often and it will reduce the number of fleas quickly and easily.
Choosing The Right Perennial Flowers And Plants For Your Garden (8)
These kinds of plants will do well in desert states such as Utah, Nevada, Arizona, and New Mexico. If your garden experience less sunlight and more shade, then look for perennials designed to survive in low-sunlight conditions.
Small Business Marketing | Why You Should Include Article Writing In Your Marketing Mix (9)
There are many ways you can make money from writing articles including offering re sell rights, writing for a particular magazine, newspaper or organisation or indeed if you get good at it, writing articles for other people.
How To Choose The Right Boat Refrigerator (10)
When shopping among different brands and models, there are a few things to consider that will help narrow your decision. Bigger is not always better You want a boat refrigerator with the capacity to hold all of your perishables, but you don't want to waste space, money, or energy getting a unit that is too large.
Newer Articles Highlighter:
Realize Your Dreams With An Ecommerce Storefront (1)
Will your Ecommerce storefront make you rich? It may or may not bring you financial success. If you work hard at it, it should be able to provide you with the income that you need to manage your life.
An Online Shopping Cart: Why Every ECommerce Business Needs One (2)
Just as a checkout counter shows customers where to go when they have decided on their purchases, so an online shopping cart helps customers navigate your website to complete their purchases quickly and without frustration.
Advice For Buying Consignment Furniture (3)
Most of the consignment shops offer lots of variety when it comes to choosing cheap furniture. And the best part, you can find some good solid wood furniture in most of the shops.
Showing An Interest In Snowboarding (4)
The styling of snowboards has peaked the interest of people for years. Some snowboarders have found that the step-in strapping systems on snowboards are far more convenient for them, and their interest in snowboards centers around being able to step in to the bindings and being on their way in a matter of seconds.
Can You Retire Before You Die? (5)
More Statistics... Out of every 100 people who reach the retirement age of 65: 62 retire with less than $25,000 in assets and depend on Social Security or family for their retirement.
Ideas For Job Related Gifts (6)
This will allow you to narrow down your search and prevent you from getting out of control as well. If you are buying something for your boss, you don't want to buy something too cheap but also not too expensive.
Alternatives To Enjoy Music Better (7)
These portable devices can be held in the hand or strapped to the waist. A lover of music can select the music file that they want from 300 others that are on the MP3 player or they can make a music choice to play the same song repeatedly.
Free Web Hosting Incentives (8)
The web hosting incentives that will draw customers to the website are the ones that will help business owners transact business on a day-to-day basis. The incentives that are offered free of charges are typically those that enhance the quality of the customer experience when they enter the site.
Dealing With Emergencies When You Travel (9)
Point at the patient to show what is wrong, using sign language if needs be. When you have non-life threatening injuries to deal with, you will want to simply go to the nearest hospital to receive care.
Internet Marketing Basics: What Is And How To Use It (10)
As long as your products don't interfere with theirs, you can promote whatever you want. As you become better at Internet marketing, you can expand into different groups, begin paying for ads in order to attract more business, and add to your products by creating new ones.