Business & Finance Stocks-Mutual-Funds

Penny Stocks - The Unknown Secret Of The Stock Market

All of us know the big name stocks by heart. You hear about them all the time on CNBC and The Wall Street Journal. We hear about them constantly. Companies like Exxon, Microsoft, Wal-Mart, are always going to grab the headlines when they report earnings.

These are the companies that people invest in for steady growth and income in their portfolio. It's safe and there is nothing wrong with safe.

But do you honestly think that traders strike it rich by trading these kind of companies, now. I highly doubt it.

You think people treat Microsoft like some kind hidden gem? Of course not! They know that the value is already built in the market. There is definitely a ceiling on potential growth.

But what if somebody had the foresight to invest in Microsoft when they were an unknown, wouldn't that be a different story? But to be one of the ones who strike it rich in the stock market then you have to able to have foresight and a little bit of courage. If you see an opportunity like that, you've got to be ready to jump on it.

You never find that kind of opportunity by following the stocks you see on CNBC.. To see the true potential of what investing the stock market can do, you need to look at penny stock trading.

I know that doesn't strike a lot of excitement for most traders, but this is where the next potential Microsoft is hiding. Remember, all companies have to start somewhere. Microsoft didn't just become a billion dollar company. It started off with modest beginnings.

Throughout the history of the stock market, there have been many companies that just burst onto the scene from nowhere. A year ago most people didn't even know their name. For example, look at the internet. I know what you're going to say. "A lot of them didn't make it". But take a look at the ones that did. They are big-time companies, now. You can be certain that they started off in the bargain bins.

Companies that are penny stocks today could be all the rage the very next year. It happens all the time.

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