Yes, you can! But the quantity of money you make in penny stocks is firmly proportional both to the quantity of homework you do and the quantity of discipline you have.
Penney stocks are one of the most volatile investments into which you may ever put a dime, capable of breathtakingly fast gains and even faster falls down. So if you intend to trade penny stocks, you must be ready to watch your investments consistently during market hours, and sell when you are in profit. You need to also use stop loss orders if your broker allows it.
Reasons For making an investment in Penny Stocks
Keeping all the caveats under consideration , there are still sound excuses for including penny stocks in your portfolio. As their name commends, they don’t cost a great deal, so that you can build a significant positions in a company for a comparatively small sum of money. While you will never own 1,000 shares of a blue chip stock, you can own many thousands of shares of a penny stock.
As you can own such large quantities of a penny stocks, you do not need to see an enormous gain in price to make a respectable profit. Every time the price of the penny stocks of which you own 10 thousand shares goes up a single penny, your position will increase $100 in price. But if you get greedy, you can lose your profits by waiting too long to sell.
What to study Penny Stock companies
Penny stocks are not merely bets if you spend the time to analyze them. You simply need to educate yourself in certain sides of the firms in which you would like to invest ; pay special notice to the industry in which the company operates ; the expertise and reps of the company’s’s management and the market approval of the organization’s’s services ; past trading patterns of the company’s’s stock ; and the way the sector which the company is in is influenced by economic and political factors.
Be clear of the greatest penny stock pick program in the trade market Penny Stock Prophet. Look out for this link to know Penny Stock Prophet Scam