If I Gave You a List of 1000 Penny Stocks, Would You Know What to Do?
I could give you a huge list of 1000 penny stocks, and chances are it wouldn’t mean that much to you. Penny stocks have become increasingly popular in the stock market world, but most traders and investors don’t have the slightest idea how to trade them. The truth is, it really isn’t that much different than trading many of the high volume stocks that you hear about on CNBC. The only difference is that these cheap stocks don’t get the same fanfare.
One thing you need to understand about trading small cap stocks is how to take advantage of the incredible leverage they offer.
For example, let’s say we’re new to the stock market and only have $2,000 to invest (This is the case with most new traders). If we we’re to take the same route that all the analysts say and trade only the top tier blue chip stocks, we wouldn’t have much of a portfolio, would we? After all how many shares of stocks can you buy in companies like GE, Target, and eBay? Maybe 10 shares here and 5 shares there. The commissions alone, would eat you up.
Now, let’s take a look at cheap stocks. How many shares can you invest with these dirt cheap stocks? Quite a bit. You can actually build a pretty nice portfolio with these companies. And the great thing is that there is so much growth potential. There is a much better chance that one of these small cap stocks would go up 100% within the year than a company like GE.
Jeff Avery has become an extremely successful penny stock trader. He found a system which tells you about penny stock investing that have the most chance of increasing in value. Check out http://pennystocksystem.co to find out more information.
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