e premte, 1 qershor 2007

Penny Stock Trading - Is Penny Stock Trading Right For You?

by John Triggerman
How do you decide when the time is right to invest in the stock market and how do you choose which stocks to invest in? Even if you are thinking of beginning with penny stock trading, these are two very important questions that need to be answered before investing any of your hard earned money. Each and every day people are getting rich off the stock market and penny stock trading, a dream almost everyone has. However, that doesn't necessarily mean it will happen to you.

At one time penny stocks were traded for less than a dollar per share. The Securities and Exchange Commission (SEC) has since modified the definition of what a penny stock is to include all the shares that trade below five dollars. Stocks that are traded for more than a dollar are being considered penny stocks because they are very much perceived the same way that the penny stocks under a dollar used to be; risky investments.

Penny stocks are growing companies with limited resources and money. It is for this reason that penny stock trading is looked at as a high risk investment that consists of low trading volumes and garners little to no attention from investors, since these stocks are rarely found on the Nasdaq and NYSE.

Before jumping with both feet into penny stock trading, you have to consider whether this is your time. Are you emotionally ready for the ups and downs the stock market brings? You can't get involved and only think you are going to make money. You have to look at it in terms of how much money you can afford to lose. If your answer to that is you cannot afford to lose any money, then penny stock trading at present time is not for you.

There are no guarantees any stock you buy will make you money, even if you focus solely on penny stocks. Do your research, subscribe to penny stock trading websites and arm yourself with knowledge, so that when it is the right time for you to start trading you will know exactly what to do and what you are getting involved in.

If you have decided that yes, now is the time to immerse yourself in penny stock trading, deciding which penny stocks to buy is the next step. There are a couple of penny stock subscription based websites available to you. A knowledgeable penny stock analyst will send on a regular basis, emails with the latest tips on which stock to buy at what price and at what price you should sell it. Like any type of investments, you won't see results overnight but with some patience, perseverance and a few good stock tips you may just find yourself like many others have in the past; laughing all the way to the bank.