Penny Stock Picks – A Beginner’s Guide
Penny stocks have been popular for years in the investing community with the thrill of the chase and the possible huge payoff. Imagine, if your penny stock picks turn out to be winners, you could turn a $100 investment into $10,000 or more! Imagine finding the right penny stock right before it becomes the next hottest thing with a payoff that could see a stock worth a couple of cents turns out to be worth over twenty bucks a piece when that company suddenly hits the public realm or is bought out by a corporate giant. The problem of course when it comes to making the best penny stock picks is that there are tons to chose from and picking the right one could have the odds of winning the lottery.
Penny stocks are different from a typical stock simply based on the price. Sure Microsoft is a wonderful stock but the cost to invest is pretty darn high and chances are unless you have a ton of money in the bank it is not going to make you a lot of money. Now imagine if you were on board when a stock like Microsoft was still among the thousands of penny stocks out there before it went public. Simply put you would have a heck of a lot of money in the back with this extraordinary best penny stock picks. A ton of initial Microsoft employees are now millionaires due to their stock options when they were first hired. Ten thousand stocks worth pennies is only a couple of hundred bucks but when that stock hit the mainstream and entered the public domain those ten thousand stocks were now worth hundreds of thousands of dollars and quickly exploded to be worth millions. That is the power of penny stocks and more importantly the importance of making the best penny stock picks.
The reason people don’t succeed with penny stock picks is they don’t take the time to fully research their picks. They often blindly throw money at stocks based on a single tip they hear from a friend or co-worker. Another way to avoid bad penny stock picks is to not jump on unsolicited tips you receive in your inbox. There are legitimate sources for solid penny stock picks. However, the legitimate sources are not pumping out millions of emails to unsolicited recipients. Receiving a pick you didn’t sign up for is almost always a sign of someone trying to profit from the ignorance of others.
You should also avoid allowing your emotions to cloud your judgment. Trading penny stock picks can be exciting. However, being successful requires keeping a level head. Don’t ever forget that less than 5% of penny stocks present sound opportunities. You need to stay focused on separating the wheat from the chaff to make the best penny stock picks that are financially rewarding for you.
All in all, penny stock investing is fun and exciting, and can prove to be very rewarding, if you follow a few simple rules and avoid acting on emotion. Just like any other business, day trading penny stocks is a business, and because of the fun and excitement it offers, many people forget that it is a business, and a very serious one. So remember to treat it like you would any other important business, and avoid acts based on emotion and greed, and you just might end up becoming one of those people that got rich with penny stock picks!