| While there are many types of investments, penny | | | | can invest in mutual funds or individual large company |
| stocks can be the most rewarding. The potential to | | | | stocks. You certainly have increased your risk, but |
| yield significant gains in a short amount of time is | | | | also your upside at the same time. |
| appealing. It is very common for the best penny | | | | But what if you wanted to double or triple your |
| stocks to move 10-25% in just one day and over | | | | money in a relative short period of time. You |
| 1000% in one year. | | | | certainly could not get that from the bank or a |
| The very nature of penny stocks, make them very | | | | government bond. And you would be hard pressed |
| rewarding and dangerous at the same time. So you | | | | to find a larger company stock increase two or three |
| may ask, why invest in them at all? The answer lies | | | | times in a short period of time. However, if you were |
| in the old saying, "the more risk, the more reward". | | | | willing and able to take the risk associated with penny |
| Putting your money in the bank virtually eliminates all | | | | stocks, there are a small percentage of low-priced |
| the risk. Having liquidity and immediate access to it is | | | | stocks that beat the odds and provide huge |
| important, but in today's market, after taxes and | | | | increases in the stock price in just a month or year. |
| inflation, what's left? Government treasuries and | | | | So is it worth investing in penny stocks? The answer |
| bonds provide relative safety and security too, but | | | | is both yes and no. Only you can determine that |
| with interest rates so low today, don't look for a high | | | | after you've decided you are capable of taking the |
| rate of return. | | | | risk and you educate yourself on this piece of the |
| If you find there is a portion of your investment | | | | marketplace. |
| dollars that you are willing to take more risk on, you | | | | |