| Penny shares can be a great alternative to regular | | | | from its original price. However the penny stock |
| stocks. | | | | would now be worth $0.15 which is a massive 300% |
| Huge profit potential | | | | rise in price. Assuming you had bought £1,000 |
| Due to their nature penny stocks have a huge | | | | of stock at the original price you would have just |
| potential to make you large profits. Rather than | | | | made $2,000! |
| aiming t make say 10% or 12% per year as you | | | | Where to find profitable penny stocks |
| would with regular stocks, investing in penny stocks | | | | This can be the tricky part. There is often much less |
| can easily deliver returns of 50% - 200%.look at an | | | | data available for penny stocks as opposed to those |
| example. Consider two stocks, one of which is a | | | | traded on the main exchanges such as the Dow |
| penny stock and is currently quoted at $0.05 and a | | | | Jones. This makes stock selection much harder. |
| regular stock that is quoted at $5.00. Now lets | | | | Often only the professional traders have the |
| assume both companies are in the same industry and | | | | knowledge of where to get this information. |
| are of equal size. | | | | There are several newsletters that can be subscribed |
| Assume both companies sign a new lucrative | | | | to where you will be provided with a list of pre |
| contract with a new customer and both their shares | | | | selected stocks. Such newsletters can be a great |
| rise in value by 10 cents. The regular stock would | | | | help when selecting stocks however they do vary in |
| now be worth $5.10 which equates to a 2% rise | | | | quality so be sure to try and pick a good one. |