By far, the biggest hurdle that most new stock traders have to deal with is the capital that's involved in stock trading, especially if you want to build a strong, diversified portfolio.
This is exactly the reason why so many traders turn towards penny stocks.
You don't have to be a "big shot" to have a portfolio of small cap, cheap stocks.
The beauty is that you could end up generating a higher rate of return with these penny stocks than you would from large cap stocks that get more attention.
But I want to make sure that you understand that even trading penny stocks can be a risky endeavor.
But when you look at the blue-chip stocks, they are not as safe as they were once regarded as being.
If you don't believe me, all I have to say is one word: "Enron".
That company alone will make you think twice about the safety and security of "blue chip" stocks.
So when you look at risk, realize that it's all relative.
To be perfectly honest, it requires the same kind of comprehension of the market to have a successful trade of Walmart as it does 20 cent stock.
But thankfully, we live in a technological age where the playing field has been somewhat leveled.
We have computer software and communications that make the process a whole lot easier.
You can be alerted when a small cap stock is ready to burst.
An email will be sent directly to you.