| If there is one thing that will never run out of, is | | | | not diversified, but chances are you are not going to |
| people who are looking to make some extra money. | | | | get much return on your investment. |
| After all, money makes the world go around. That's | | | | But on the other hand, $5000 dollars can not only get |
| why so many people jump into the stock market. | | | | you a diversified portfolio, but it would allow you to |
| The status quo has been to trade the "blue chip" | | | | day trade a lot of penny stocks, without having to |
| stocks, but I am glad to say that there are more | | | | spend too much money on one stock. |
| people than ever who are day trading penny stocks. | | | | Think about it like this, if you are trading with large |
| I'm glad to see it because many traders don't really | | | | cap stocks, you are buying less shares with more |
| have the kind of money to trade the large-cap | | | | money, and worse of all, you have a lot less potential |
| stocks, and they often over leverage themselves | | | | for strong growth. |
| into investing more than they can afford. For | | | | This is what makes penny stocks so attractive for |
| example, if you had only $5000 to invest in, that may | | | | the new investor. It really goes to show that the |
| equate to just buying 100 shares in one large cap | | | | stock market doesn't just have to be the rich guys. |
| stock. | | | | The average Joes can get their piece of the pie too. |
| This is not the smart way to trade. Not only are you | | | | |