Beginner’s Guide to Trading Penny Stocks

Nowadays even those investors with less capital can enter into the stocks market and get profitable returns on their investment. It is more than likely that you have already heard about penny stocks in the newspaper or TV, but you might not be sure about what it is. Many newbies have managed to become millionaires by buying these mini stocks which trade less than $5 and sometimes the value can be even lesser than that. Many self-made successful have made a fortune out of this branch of stock market as there are less chances of facing large percentage of financial losses even if the stock rates go down.

These small cap stocks are everyone’s center of attention nowadays because they are not regulated in a way such as typical stock shares and they don’t get that much exposure on the media because of their limited market. If you are looking for an unbiased Timothy Sykes review, then make sure to check out the website of Personal Income now. It might as well be one of the riskiest investments in your portfolio as there are various scammers in this market. You would seldom find the exchange rate of penny stocks on CNBC but you shouldn’t become discouraged due to their lack of coverage on the TV. Pump and dump schemes are also very common in this market, as the traders are aware about inexperience of most of the investors in this mini market. Some of those traders would hold high amount of penny stocks and wait for the right time to sell them off. Even if you see dramatic increase in the profit projection of your potential shares, you can’t assure that the same increasing trend would continue for a long period of time after your purchase.