Should You Invest in Microcap Stock?

In: General

3 Sep 2010

Attempting to find Penny Stock tips on the internet can be an extremely threatening approach to getting info about making an investment in these kinds of stocks.

There are tons of folks providing Penny Stock tips on message boards and forums all over the web. The problem with these kinds of tips on penny stocks is that many of them are completely hype.

In the penny markets rumors and supposition can run a.10 stock to.30 or.40 in a day.
most of the high class players typically spend some time researching stock charts to study movement trends and envision likely profits. The serious players can use this strategy with far better results than basing on company reports or other information that is dodgy at best. Some fundamental Penny Stock tips for new stockholders :

Never invest in Penny Stocks what you cannot afford to lose. Remember you are making an investment in tiny start up firms that often times fail leading to the next tip.
Never play these stocks with one eye on growing long-term investment wealth. These types of stocks are better short term investments and play very similar to betting than traditional stock investing.
Often I will be able to also set a sell price but that is more based on how I feel about a stock or what the chart information informs me.

The last penny stock tip I would offer is to bypass the Internet message forums and try to stick with a chart method or advice based upon chart movement. Any investment in these stocks is a risk as with all investments but they are very fun to sell and buy. You can also make very good money if you have the right tips

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