A penny stock is a stock that typically trades for less than five dollars. These low priced stocks offer part time investors the opportunity to invest smaller amounts of money and still see very attractive returns. This practice can be both tricky and lucrative.
If you are like most folks, you are trying to find a way to make some extra cash, but want to avoid as much risk as possible. Lucky for you, a lot of the magic of how to trade penny stocks and how to be an effect penny stock trader has been unveiled for you.
Many people spend many years developing research and strategies to help them figure out exactly how to pick penny stocks and how to trade penny stocks. If you know what you are doing, you can make a good deal of money trading penny stocks. Unfortunately, the window of opportunity is often small with these stocks, and the downfall is if you miss that small window of opportunity, you could lose a great deal of money too. As with everything, there is always greater reward for something with greater risk.
Often times, penny stocks have been known to double or triple in only a few days time which means that you can make some excellent returns in only a short amount of time. Penny stock trading isn’t for everyone. I am definitely not trying to discourage you in any way, but I am just trying to be upfront and honest. I have had fun and made some money trading penny stocks. I haven’t gotten rich, but I have generated additional income for my family, and I have also had a good deal of fun and learned alot along the way.