I am not a big stock market investor. My earlier attempt at stock market investing didn’t fare too well – even though I chose to go with the supposedly least risky of all investments, the Index Fund. Needless to say, I have never ventured into investing in individual stocks.
I have read quite a bit about people making a killing in the stock market and how folks make money by investing in penny stocks. I had no clue how they do it and frankly, I wasn’t too interested in learning either.
Recently though, I was asked if I would be interested in publishing an infographic which is a primer on penny stocks. I couldn’t help but think, why not! I could learn a few things and maybe some of you will benefit from it too!
So, here we go – Penny Stocks 101. Enjoy!
Via: StockRockandRoll
Well I have to read and learn for penny stock information. It’s interested me but I really have to read and learn about it. anyway, thanks for the information about penny stock
Hendarto recently posted..Cheap BMX Bikes – Have One and Experience Its Great Features
Nice infographic! It does confirm that I am more of a common stocks girl myself. I just like less risk too much.
I have never heard of penny stocks but I’ll have to ask my business finance professor about it because it seems really interesting and I’ve always wanted to invest in stocks. Thanks so much!
I have years of experence with penny stocks. The most common perception that investors have when they think of penny stocks is buy a stock for 10 cents or 25 cents and watch the price go to 3′ 4′ 5 or 10 dollars. In reality this rarely happens. I am not saying that it never happens but not at all that often. The true definition of a penny stock not only includes those stocks that trade under a dollar but really any stock that trades in low single digits that would be 1′ 2′ 3 ‘ 4′ usually up to 5 dollars a share. I find many of the penny stocks of the highest quality trade between 1 dollar and 5 dollars a share. Another big misconception about penny stocks or low single digit stocks is that their are not any companies that are of good quality that are worth investing in under 1 dolar or in low single digits. This is totally completely false. Apple computers shares traded at just 5 dollars in 1998 today the stocks trading over 500 dollars a share. Petsmart shares traded at just 2 dollars in the year 2000. Today the shares of petsmart are trading at almost 70 dollars a share. The big issue with low single digit stocks is that finding a decent company trading at a low price requires much more time and effort and research than finding a high quality stock trading at say 50 dollars a share.
Penny stocks are a high risk/high reward purchase. I love the infographic. The question is, is it worth all the time and risk to find a low-priced stock? If your research had lead you to Apple in 1998, you would think so!
David Sneen recently posted..How to Combat Inflation, Expenses & Increased Taxes
Penny stock is a rewarding investment but risky though.To start investing into it you must take time to learn all the basics and move to the advance stage.Even if you want a pro to invest for you,you still need to know how it works
I must confess i´ve never heard of Penny stocksbefore, are they a high risk/high reward purchase.Things like i have reservations (boring aren´t I) . Great infographic, really easy on the eye and nicer to read than just words on a page. One question has just come to mind, are people buying Penny Stocks because it´s new I wonder?!
I am not a stock market investor too but it looks interesting for me. May be you can share how to start the business in the next post. I really hope that you can make it happen.
erwin recently posted..Marcy Recumbent Bike
Very interesting. Though for what i see. It’s more of your being open for struggles that can make you better. Being a risk-taker is more than just waiting for others and look for their feedback.
Trixie recently posted..home loan singapore
Thanks for this infographic, I’ve always wondered what penny stocks are. Seems a bit too risky of a way for me to make money though!
Danny recently posted..If You’re Hardcore It’s The Rat 7
To become a stock holder, someone should possess confidence and know the risk in this kind of investment. This really informative and reminder to those that planning to invest.
Isn’t to start a business facebook well.It is usually advisable to build your individual business
strategy.
This is a great infographic! I am really liking it and definitely going to be sharing it with my investing community on social networks.
One of the main problems with penny stocks is the lack of education on them. If you read some of the authoritative texts on penny stocks, how to trade them, how to analyze them and understand some of the underlying principles like reading charts, you stand a far better chance of success.
Of course you have to be incredibly weary of penny stock scams too which are abundant online. Some are well aware of them and actually take advantage of them themselves. The choice is yours.
Youthful Investor recently posted..5 Gadgets for the Ultimate Day Trader’s Office