Penny Stock Investing Tips And Suggestions

Penny Stock Investing Tips and Suggestions

Penny Stock Investing Tips and Suggestions

Free Online Articles Directory

Why Submit Articles?
Top Authors
Top Articles
AB Answers

Publish Article

0 && $ .browser.msie ) {
var ie_version = parseInt($ .browser.version);
if(ie_version Hello Guest

Login via

My Home
Sign Out



Remember me?
Lost Password?

Home Page > Finance > Investing > Penny Stock Investing Tips and Suggestions

Penny Stock Investing Tips and Suggestions

Edit Article |

Posted: Jul 15, 2010 |Comments: 0


Stocks, which are priced in between – are considered to be speculative and are generally known as Penny stocks. If you are an expert investor, you should look into penny stock investing to find the next big company. The suggests that you start investing by careful study and consideration. You can take the help of the Internet and the financial magazines for suggestions and guidelines in penny stock investing.

There are certain definite pitfalls of investing in penny stocks. The primary restraints in investing in penny stock are risk, minimum listing standards and the shortage of public information. However, certain tips and suggestions from would be extremely beneficial for you if you are a beginner in the field of penny stock investment.


If you are keen on penny stock investing since you intend to get high returns in exchange for small money, you should investigate about the particular companies thoroughly before you can move ahead with any investment plans. Most of the penny stocks are from newly formed organisations. Therefore, you may not be familiar with much information regarding the company. Hence, it is always better to avoid buying from such companies unless you are well aware of the company and its financial conditions so that you can avoid bankruptcy.


It is quite usual to see a new organisation run at a loss, but it is necessary to see, the reasons behind it. If you are aware of the process of making profits, you would definitely research and by that, you would be able to lower the risks of capital loss and enhance the chances of a higher return. Therefore, if you are wondering how to differ the good companies from the bad, then you can simply start tracking the investments and the company records.

When you are planning to make investments, you should be on the lookout for shares, which are being traded at a high volume. The average volume can be often misleading. Hence, to get suitable rate of return, a consistent volume is required. The first thing you should look for when investing in penny stock is liquidity. You will end up with ‘dead money’ if there is no volume. The best way to sell shares is put extra selling pressure by dumping at the bid, ensuing in lower selling price.


Another pitfall in penny stock investing comes from the way these stocks are traded in the market. Most exchanges, like the NASDAQ and NYSE does not list penny stocks. The penny stocks are usually allotted to Pink Sheets or the secondary markets. Hence, it is important that you look before you leap. Therefore, the best penny stock investing tip is that you do not invest in something, which you do not understand.

Retrieved from “

(ArticlesBase SC #2833191)

Liked this article? Click here to publish it on your website or blog, it’s free and easy!

Prasen Dutta
About the Author:

The Must Follow Penny Stock Tips For Investors

Stocks that are traded under five dollars per share are known as Penny Stock.  They are very risky and so investors generally avoid them despite the fact that money can be made in this market. However, suggests some penny stock tips that investors must keep in mind.


Questions and Answers

Ask our experts your Investing related questions here…200 Characters left

I want to make a small investment in penny stock, i cannot do analyses, do you pick them,if you do, suggest some and your charges
How to find the best penny stocks & it’s benefit?
Why the people always fall to the trap of Free Stock Tips given by their stock brokers and finish mostly with an loss in their investment?

Rate this Article

Pages: 1 2 3 4 5