Penny Trading – Trade, Invest, Make Profits!

Penny trading will help any beginner investor learn about trading due to their low cost. However, for any trading veterans, penny stocks can also be used to grow their portfolios.

Stocks that sell for below $5 are considered penny stocks and can typically go as low as 1 cent per share. This is the reason why penny stocks are great for the novice investor. These low cost stocks do no lose as much value as they would if you were to buy, say, shares of large well known companies for over 100 dollars each. Therefore, penny trading is great for beginners.

The potential for unlimited gains also entices seasoned investors to penny stocks. Many companies start out as penny stocks. For example, Amazon.com first made an appearance on the stock market selling for less than 2 dollars a share. As of this writing, Amazon is now over 100 dollars a share. If you knew what to look for, Amazon would have been one of the great success stories in your portfolio.

However, penny trading is not as easy as it seems, and there are risks that come with any type of trading and investing.

One of the toughest jobs a penny trader must do is to evaluate their appetite for risk and to pick the penny stocks that will provide them with the best return on investment.

In order to achieve the best returns, a penny trader must:

*examine all types of chart and their highs, lows, and patterns
*analyze the latest news headlines about the business
*research about the company’s financial strengths
*spend a lot of time doing all the above
*make an investment decision

Sometimes, a penny trader will go through all that diligence and hard work only to not make an investment at all! Why? Because somewhere during their research, for example, something came up as a red flag, and the potential to lose money was too great.

How can you avoid all this headache and all the time spent learning how to penny trade? You can either pay someone to do the research for you, or you can use a balanced guide that will show you what to look for. It will help save you tons of time and effort as well as help you make the right penny stock picks.

One of the guides I read myself and learned from is linked below. I highly recommend this to all who venture into penny trading. The information is helpful and the guide will help you make profits.