A newcomer in the field of penny stock investing should be attentive and wide awake all the time. This world is full of risks and possible frauds. A risk tolerant person should only step into this business. The stock aspirants must stay away from the Dark Market stocks, Pink Sheets and the Pump and Dump strategies often used by the companies to trap people and steal their money. The beginners should start by making short-term investments to find out if their money bears them any fruit or not. Penny stocking is for those who cannot invest in large companies with higher priced stocks. There are chances of becoming rich by putting money in these stocks as and when the company bears gains. Short-term investments can save the shareholder from massive losses.
There are many advantages of penny stock investing but these advantages can turn into disadvantages at any point. Therefore, trust is a word that should never be used while investing in penny stocks. Stock aspirants should not rely on any company completely. It is hard to find penny stocks on the major stock market one should totally try because those are better than other shares for investing. Most of the penny stocks are available via Over-the-Counter boards and Pink Sheets. Though these can be considered fine it is always better to look for the best and leave the rest. Everything in the penny stocking world is full of illusion.
How to get started?
- Open an online brokerage account.
- Make enough research about any company before making any investment.
- Do paper trading before doing actual business.
- After doing paper trading, start by making short-term investments in good and financially stabilized companies.
- Find a trader who has actually made money by penny stocking. The Internet can give good information but practical information can be given by a live person only.
Which companies to invest in?
- DHX Media Ltd. (NASDAQ: DHXM)
52 Week Range: – $0.8000- $2.7800
Volume: – 123,815
Average Volume: – 97,001
- Globalstar, Inc. (NYSEAMERICAN: GSAT)
52 Week Range: – $0.2900- $0.7300
Volume: – 1,062,513
Average Volume: – 1,799,830
- Blink Charging Co. (NASDAQ: BLNK)
52 Week Range: – $1.5600- $6.3500
Volume: – 116,361
Average Volume: – 463,179
- Limelight Networks, Inc. (NASDAQ: LLNW)
52 Week Range: – $2.2100- $5.3200
Volume: – 1,967,077
Average Volume: – 993,920
- Denison Mines Corp. (NYSEAMERICAN: DNN)
52 Week Range: – $0.4400- $0.6900
Volume: – 197,678
Average Volume: – 468,953
- Conformis Inc. (NASDAQ: CFMS)
52 Week Range: – $0.3580- $4.6800
Volume: – 1,546,907
Average Volume: – 1,820,949
The few companies mentioned above have been among the current choices for penny stock dealings and are considered to be profitable investments. As of now, one can surely think of investing in any of these companies but should also stay alert all the time.
Well, there is not much difference between penny stocking and gambling. Anything may happen anytime and losses come uninvited. This world is a big pool which can become shallow and deep at any point. It is very important to stay beware of the frauds and have good profits.