Which Penny Stocks You Should Buy
If you're new to the world of stocks, or simply penny stocks in particular, then chances are that this new form of investment may come as a bit of a shock.
Whether that shock is a pleasant one or not depends on how deeply you get involved with penny stocks, as well as how successful you are at making money from them.
Penny stocks can be an intimidating avenue despite their seemingly innocuous sounding name.
In fact, it's that same projected sense of ease that has had many investors tripping up in the case of penny stocks and losing just as much, if not more, money as they would have had they stuck with regularly priced stocks.
The problem arises when an investor (usually a new investor) decides that because penny stocks are relatively cheap, that means that their losses won't be as great.
That's only partly true however.
Buying shares to a company that is floundering in the current market can send you into deep debt, which is why it's important to know which types of stocks will be thriving in the future.
Usually this type of knowledge only comes with experience, though many investors can make an educated guess as to which needs or fads will last and which ones will not (i.
e.
the constant need for security, the rising need for alternate fuel, and the popularity and resourcefulness of having electronics, manufacturing, and agriculture).
To demonstrate better, let's look at electronics.
Electronics is a market that has boomed over the years, and because it is still relatively new and therefore still has many new possibilities to look into, it is a prime market category to invest in.
Look for companies that deal with manufacturing more efficient and hi-tech tools and software.
The lithium ion battery, for example, would have been a smart move since these are the types of batteries that now run our phones, cameras, etc.
and is also the reason why these products are so small and lightweight.
When you look at other types of stocks and what categories they fall into, you'll be using much of the same thought processes.
What's popular? What's wrong with what's popular? What companies have found solutions (whether temporary or long term) for those problems? With your mind running along those lines it should be simple enough to decide which stocks you should trust with your money and which ones you should avoid all together.
Whether that shock is a pleasant one or not depends on how deeply you get involved with penny stocks, as well as how successful you are at making money from them.
Penny stocks can be an intimidating avenue despite their seemingly innocuous sounding name.
In fact, it's that same projected sense of ease that has had many investors tripping up in the case of penny stocks and losing just as much, if not more, money as they would have had they stuck with regularly priced stocks.
The problem arises when an investor (usually a new investor) decides that because penny stocks are relatively cheap, that means that their losses won't be as great.
That's only partly true however.
Buying shares to a company that is floundering in the current market can send you into deep debt, which is why it's important to know which types of stocks will be thriving in the future.
Usually this type of knowledge only comes with experience, though many investors can make an educated guess as to which needs or fads will last and which ones will not (i.
e.
the constant need for security, the rising need for alternate fuel, and the popularity and resourcefulness of having electronics, manufacturing, and agriculture).
To demonstrate better, let's look at electronics.
Electronics is a market that has boomed over the years, and because it is still relatively new and therefore still has many new possibilities to look into, it is a prime market category to invest in.
Look for companies that deal with manufacturing more efficient and hi-tech tools and software.
The lithium ion battery, for example, would have been a smart move since these are the types of batteries that now run our phones, cameras, etc.
and is also the reason why these products are so small and lightweight.
When you look at other types of stocks and what categories they fall into, you'll be using much of the same thought processes.
What's popular? What's wrong with what's popular? What companies have found solutions (whether temporary or long term) for those problems? With your mind running along those lines it should be simple enough to decide which stocks you should trust with your money and which ones you should avoid all together.
