| An unwanted side to investing in penny stock is how | | | | hard to find a buyer. |
| quickly you can lose money fast in a bad investment. | | | | 4. Lack Of Reporting By Company: When you invest |
| Even though the rewards of penny stock investing are | | | | in a company, you want to know what you're buying. |
| far greater than most investments you will find, the | | | | To give you an idea, you need their financial |
| risks can be daunting. | | | | statements in order to properly evaluate the company. |
| If you are like me, you want high returns fast without | | | | If no financial statements are issued, the company |
| losing money. I will show you two ways do avoid risk | | | | might have something to hide. |
| and get high returns, the slow way and the way I use | | | | 5. Company Hype: Be careful of companies that |
| (which I will mention at the bottom of the article). | | | | constantly issue statements that highlights the latest |
| Here is the long way, but one that works, to greatly | | | | developments but provides no details on how it helps |
| reduce, perhaps even eliminate, the risks of penny | | | | increase revenue or profits. |
| stocks: | | | | You may find all these tips frightening in the fact that it |
| 1. Beware Hot Stock Tips: You have most likely | | | | requires a lot of in-depth research to be done on all |
| received a "hot tip" via spam email at some point or | | | | stocks you are considering purchasing, and you'd be |
| another. The promoter promised you fantastic | | | | right. However proper research is key to eliminating |
| guaranteed returns on your hot penny stocks | | | | risk! |
| investment. They word the email to make it a "once in | | | | For those not accustomed to it, the stock market |
| a lifetime" opportunity to you. The best thing to do is | | | | looks either a rosy picture or the dooms day scenario. |
| delete the e-mail. Chances are you're being scammed | | | | In reality, it is a mixture of both. By investing in |
| by a "boiler room" scam operation. These shady | | | | researched stocks, you can get the money of a life |
| operators buy up worthless shares at fractions of a | | | | time or if you are not careful, you may lose the money |
| penny and then attempt to flip them for a few dollars | | | | of life time. While not every one can become Warren |
| per share. | | | | Buffet in stock market, at least you can avoid losses |
| 2. Trading Penny Stocks in Unregulated Exchanges: | | | | by avoiding the following 5 tips provided above. |
| Unregulated environments do not have to meet the | | | | I've been quite successful at the age of 24 using |
| traditional requirements expected of most exchanged | | | | penny stocks to not only pay off my college tuition for |
| that involve penny stocks. Companies in these | | | | the past two years, but also keep me debt free! This |
| situations tend to be of lesser quality. Avoid stocks | | | | has been done through following the advice I outlined |
| traded on the OTC or pink sheets. | | | | on my personal website Pick Top Penny Stocks. |
| 3. Erratic Trading Activity: You should avoid purchasing | | | | Regardless of the method you use to do your |
| penny stock that is trading erratically. You could be | | | | research, just make sure you do research! |
| stuck with the shares for a long time since it's very | | | | Enjoy, and here's to your success! |