You can earn much from Penny stocks investment if you know how to play with pump and dump and secondly you have researched the stock deeply. Penny stocks are also known as “Micro-cap stocks”, and the term “Small cap stocks” is also used for penny stocks. If you have decided to jump into the market, then here are some tips for buying penny stocks.
Main Tips for Buying Penny Stocks:
In order to minimize the element of risk in buying penny stocks, follow these tips:
- Be careful from the span emails regarding buying penny stocks, especially in that case if they guarantee a return on your money. Mostly such emails are sent by the paid promoters of the company, who own a large portion of shares. The promoters create hype in order to go up the price of the stock, then sell them and go toward the next project leaving the company and other investors high and dry.
- Avoid the most volatile stocks that move up and down in very less time, as there is much risk, unless you are a practiced day trader that knows just the right time to sell.
- The last tip for buying penny stocks is to conduct the proper research of the stock issuing company, before putting your money in buying penny stock.
Fast Moving Stock does not own any shares or plan to get a position(s) in the company(s) anytime soon. Moreover, we have not been compensated for the posting of this article/report/analysis, as this is just an opinion of our writer/contributor. Not recommandation to buy or sell any stocks Read full