What to Expect When buying Penny Stocks

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Stock investing, especially buying penny stocks, is not just a get rich quick scheme. This is real business that some of the world's richest and most powerful people use every day to earn a fortune. However, because of the nature of these stocks, one needs to exercise caution coupled with thorough research when investing. People looking at buying penny stocks should know that these typically are companies that trade for under $5 dollars a share. They are generally not traded on the major stock exchanges and are available on Over the Counter market or what is commonly known as OTC market. These stocks are often overlooked when it comes to making money with stocks. Some believes that all you have to do is learn how to spot the right pick and take advantage of them. Investing in these stocks can be pretty exciting as they are the fast movers of the stock market. While large stocks such as IBM and Microsoft lumber along like the giants that they are, buying penny stocks come be compared to racing around in a Ferrari. Investing in these can be a great way to make money fast but it is also a great way to lose money fast. So know exactly how much you are will to risk. These stocks are cheap for a good reason. Most financial advisors will advise against trading in them because most people lose money, the commissions are huge and they are subject to price manipulation due to the small float. They are also extremely volatile. It's not unusual for such a stock to go up over 50% in 1 day. Although buying penny stocks are considered high risk but they do carry the potential to eventual high reward. That is what makes them so attractive... comparative low investment for quick profit turnaround. For a hundred dollars, you can buy literally thousands of stocks. This is also why it is important to do extensive market research when dealing with these stocks. It would be great of course if the research can be outsourced to an individual or even a system. Find out about a newsletter that provides weekly stock picks analyzed by the world's first stock trading robot to assist investors who are buying or thinking of buying penny stocks here.

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==== ==== Discover 2 Secrets to Penny Stock Wealth- See how unemployed dad now makes up to $50,000 per month - HERE- http://tinyurl.com/6tj9jyh http://tinyurl.com/6tj9jyh ==== ====


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