Are Penny Stocks Dangerous?If you’ve heard anything about penny stocks, it’s probably that they’re a bad investment, or an Internet scam. There’s a lot of bad hype out there concerning penny stocks, and the bad rap has made many investors shy away from using penny stocks at are. But, are penny stocks dangerous to investors? Penny stocks have a bad reputation for a number of reasons, not the least of which is that penny stocks are often used as a part of Internet e-mail scams. Nearly everyone has been exposed to these mails, which claim to offer cheap penny stocks that will bring a large return. But in truth, this is a scam, and will only cause you to lose your money. This is one of the reasons that many try not to invest in penny stocks. But penny stocks are said to be a “high-risk” investment, which turns many people away from investing as well. After all, the words “high-risk” sound pretty scary…especially when it’s you’re money, right? High-risk means there’s a good potential to lose money, and no one wants that. There are some advantages to penny stocks, however, and they can bring in a good return. In fact, penny stocks can be incredibly lucrative, and many investors choose to take the risk on penny stocks in hopes of getting a very large profit in the end. With penny stocks, investors often have to act quickly, as penny stocks infrequently trade. This infrequent trading is one of the reasons that penny stocks are considered to be high-risk investments. It’s hard to sell stock that doesn’t trade very often. In the U.S., the term “penny stocks” is often applied to those publicly-traded shares that do not go through the major stock exchanges (NYSE, NASDAQ, or AMEX, for instance). Trading in an unsure market makes many investors leery of trying penny stocks out for themselves. But for those who know how to finesse their stocks, penny stocks can bring in a good return, and this is what makes many investors bold enough to try them out. Are they risky? Yes. Are they unsafe? Not really – unless you invest in penny stocks that you find advertises in your e-mail. Don’t trust these spam messages, find your own penny stocks to invest in. There are plenty of good penny stocks out there to invest in. It’s just a matter of finding them. Check business journals and talk to your stock broker if you have one. These are both good ways to find out about new penny stocks. Penny stocks are often cheaply bought, and in the best-case scenario are then sold for great profit. It’s this hope of a large return that keeps many investors coming back for more, buying more penny stocks, and hoping. When suck a prize awaits, many are willing to take those high risks. Only you can decide if investing in penny stocks is right for you. Look into the stocks you want to buy before purchase, and make the decision for yourself – not for anyone else. When you decide your own financial fate, you enjoy the returns that much more.
More Penny Stocks - you should know ArticlesAre Penny Stocks Dangerous? If you’ve heard anything about penny stocks, it’s probably that they’re a bad investment, or an ...read more Are Penny Stocks Legal? They don’t trade on the main stock exchanges. They have not been approved by the SEC, ... read more Are Penny Stocks Too Risky? The term “high-risk investment” sounds scary, doesn’t it? This phrase alone is enough to put ... read more Are They Right For You? Many people know that the stock market is a good way to invest, and increase, ... read more Fraudulent Activities in Penny Stocks Penny stocks are low priced stocks and are generally traded in over the counter market. ... read more From Little Pennies to Big Dollars? There’s a lot of hype out there about penny stocks. Internet spam and flashy ... read more Getting Started with Penny Stocks Penny stocks are low priced speculative stocks and these stocks are traded in over the ... read more How Do You Trade in Penny Stocks? Many beginning investors hear that penny stocks are a good way to get ... read more How You can Make or Lose Money on Penny Stocks As we have seen earlier, penny stocks carry higher risks ... read more Investing in Penny Stocks The first question is 'To invest or not invest' in penny stocks. This is largely a ... read more |
|
Disclosure: Advertisements are placed on this website to offset the cost of maintenance and to keep this site free for everyone to use. Owners of this website will receive compensation for products and services purchased through featured advertisements. All claims of actual user results should be considered atypical best case scenarios and not in the norm. |