Penny Stocks; A gamble or an investment?
Penny Stocks is more like gambling then investing! It is hard to find lawful Penny Stocks first of all; picking the best penny stocks or hot stocks comes really later. It is a big task to browse through a lot many, literally thousands of companies which are trading in penny stocks, and picking the few you would actually be investing in, or gambling on! The risk is too much! Yet when you start the actual drill, look for the stocks to pick and watch for the best penny stocks, the fun part starts.
There is a lot of attraction in this business of stocks as the people who actually start watching loosely the trends of the market, start to enjoy the ups and downs herein. The penny stocks are though different from bigger stocks, yet the way business works is obviously the same. One factor remains and that surely is the liquid nature of these stocks. Since you are gambling on fewer bucks, they tend to change a lot more times than the bigger bucks. There would be fluctuations like they can go up to more than three hundred person and drop down to just fifty percent in a matter of two days. The best part is this, you would be looking at them as the hot stocks and penny stocks to watch and there seems to be nothing wrong as such. The company would be doing fine too. The reason is again the same as mentioned; the flowing nature.
The price of penny stocks can vary easily. It can change easily. One who is buying or selling may get it changed because of the number of stocks being bought or sold. More stocks, less amount per stock and so on and so forth. This adds to the liquidity. Due to this same reason many business experts would suggest to stay away from these stocks. But the other side of the coin remains more glowing and shining. There are many people who have actually made fortune by investing in Penny Stocks. They understood the beat of the market, they got to sense what stocks to pick and could see what the hot stocks are for the day. The right time is the key to success as well. When to invest and when not to invest is a tricky issue too. If you invest at the right time, you are bound to succeed. This comes after a lot of learning and doing homework regarding these stocks.
There is a lot of attraction in this business of stocks as the people who actually start watching loosely the trends of the market, start to enjoy the ups and downs herein. The penny stocks are though different from bigger stocks, yet the way business works is obviously the same. One factor remains and that surely is the liquid nature of these stocks. Since you are gambling on fewer bucks, they tend to change a lot more times than the bigger bucks. There would be fluctuations like they can go up to more than three hundred person and drop down to just fifty percent in a matter of two days. The best part is this, you would be looking at them as the hot stocks and penny stocks to watch and there seems to be nothing wrong as such. The company would be doing fine too. The reason is again the same as mentioned; the flowing nature.
The price of penny stocks can vary easily. It can change easily. One who is buying or selling may get it changed because of the number of stocks being bought or sold. More stocks, less amount per stock and so on and so forth. This adds to the liquidity. Due to this same reason many business experts would suggest to stay away from these stocks. But the other side of the coin remains more glowing and shining. There are many people who have actually made fortune by investing in Penny Stocks. They understood the beat of the market, they got to sense what stocks to pick and could see what the hot stocks are for the day. The right time is the key to success as well. When to invest and when not to invest is a tricky issue too. If you invest at the right time, you are bound to succeed. This comes after a lot of learning and doing homework regarding these stocks.
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