The Penny Stock Attraction

There was a time when all stocks were penny stocks. What do I mean? Well whether stocks were public or not their initial worth has almost always been below a dollar at some point. Many companies don’t go public these days until their stock shares are worth well in the dollar range but just think if you were able lay down some money on them when they were worth just a fraction of a dollar. Now that’s exciting to think about isn’t it?

The potential to be worth much more in a relatively short amount of time is probably the number one reason people are attracted o penny stocks. Think about it, if you had the opportunity to invest in Microsoft when it was nothing more than a garage operation would you have done so. Probably not, but you would now knowing what you know. Giving Bill Gates a couple grand to fund his garage operation may have allotted you 10% of the company at that time, who knows.

Here’ some advice, It’s so fun and exciting to think about grand possibilities of penny stocks. It’s exciting to think about things like “If I put down $1000 on this Chinese penny stock worth $.005 a share and it goes up to $1 a share then I will have $200,000.” Now does that happen every day? No, but does it happen, yes.

With that being said I would stress proceeding with caution, just some advice the experienced. There is a lot of money to be made in penny stocks but you can also lose a lot of money. It’s best to invest in stocks before any kind of big promotion campaign. You can stay on top of the news and jump on a stock as soon as a company releases positive news. Penny stock share prices are extremely sensitive to any kind of positive news.

We are attracted to penny stocks because they can go through the roof and multiply our investment at a very fast pace. We’ve all heard the stories of people getting in on a stock at the right time and making a ton of money. So we look for stocks that may provide us with a similar opportunity.

Only invest with cash you can afford to lose!