Penny Stocks: Introduction to Penny Stocks

(PRLeap.Com) - Knoxville, TN, PennyStocksAlert.Com - Penny Stocks: Introduction to Penny Stocks
1. What Are Penny Stocks?
2. Why Buy Penny Stocks?
3. What Risks Are Involved?
4. How Can PennyStockMaster.Com Help Me?
5. 10 Penny Stock Trading Rules
WHAT ARE PENNY STOCKS:

Penny stocks are stocks which trade for values less than $5.00, and as low as a fraction of a cent. Many investors are frightened by the volatility while others make fortunes trading penny stocks.

WHY BUY PENNY STOCKS:

More people have become overnight millionaires in the penny stock markets than any other type of investment. Even small investments can turn into fortunes, and that is what draws courageous traders towards the inexpensive penny stocks.

WHAT RISKS ARE INVOLVED:

Penny stocks are far more volatile than other types of stocks, so you will see greater price movements in shorter periods of time. It is possible for you can lose 100% of your investment. That is why it is so important to get the help of PennyStockMaster.Com.

It is not wise to just buy any penny stock pumped on the internet by paid pumpers. We are here to make money together so you now have a reliable place to find good penny stock picks.

Plus, we will gladly help you along by e-mail, so that you never feel alone or uncertain about penny stock trading.

HOW CAN PennyStockMaster.Com HELP ME:

We already do all the leg work involved in researching our penny stock picks and we follow up on our stock picks and related news. We also have a credible and proven track record.

Most of the time we make weekly picks and we provide the needed stock pick due diligence data.

In addition, we are always just an e-mail away.

10 RULES ABOUT TRADING PENNY STOCK :

Rule # 1 - In our opinion, you shouldn't invest more than $3000 into any one penny stock. Penny stocks are speculative, and thus contain high degree of risk. Besides, even a small investment in one penny stock can pay off big-time due to the high price movements of penny stocks.

Rule # 2 - If a penny stock hast started moving on high volume do not chase after it. You should buy penny stocks before they move high.

Rule # 3 - You should have some available cash in your portfolio at all times so you can respond to price movements and news with strategies such as averaging down or diversification. With penny stocks you almost always have an opportunity to average down and again, averaging down with penny stocks is usually a good thing.

Rule # 4 - Sell when you've made a nice profit. Many investors allow greed to overcome their judgment and they hold on to a stock even after it has gone up significantly. This is dangerous because such confidence can be crushed in a matter of hours sometimes days. Again, penny stocks can make you a fortune but you must take profits when a stock has multiplied five or six times in value.

Rule # 5 - Don't panic and sell. Penny stocks are very volatile, and usually rise or fall greatly within days or hours. Also understand that penny stocks are for people who do not have emotional problems. Penny Stocks will roller coaster often and this can cause some to panic.

Rule # 6 - Use a broker like RushTrade.Com that charges low commissions. With penny stocks, trading often can cost a great deal, so a discount broker will help you avoid high commissions.

Rule # 7 - Check your stock prices at least once a day.

Rule # 8 - Never buy stocks because you heard a hot tip from a friend or seen a tip somewhere on the internet on a unrelated site. Only trust a proven recommendation services which have a proven track record, and/or your own research.

Rule # 9 - Do yourself a favor by doing your own research basic due diligence. Or even better by using the advice of a penny stock investment professional such as PennyStockMaster.Com.

Rule # 10 - Have fun when trading penny stocks. Penny stock investing is a great deal of fun and can be exciting because the potential rewards are greater and will come more often and quicker than other investments. Always have a positive attitude and never panic.