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