| If you want to know how to invest in penny stocks, | | | | would take a thousand or so to get started. If your |
| there are only three things you should keep in mind. | | | | penny stock falls in value, it could be very little of a |
| Stocks are volatile and you have to have a entry | | | | loss. |
| exit plan and that there is a potential for a good | | | | These low cost stocks are complicated because they |
| return on your investment. I will explain each of | | | | can be volatile. If you do not remind yourself of that, |
| these concepts in this article, and show how you can | | | | there will be pitfalls, you will have losses. With risk, |
| leverage them. | | | | there is the potential of a good return on investment. |
| If you want to know how to invest in this type of | | | | You can never tell when one of these startup |
| stock, start by remembering that penny stocks are | | | | companies will hit it big. An example of a win is cisco |
| volatile. These stocks will move up and down in value | | | | (CSCO) on April 1990 opened at $0.08 but more |
| quickly. People who trade these, usually trade them | | | | recent on February 2009 it is at $15.51 and in March |
| daily. Listen to this example carefully. | | | | 2000 it was $77.31. |
| If you have a stock that you picked for $0.20 in the | | | | We will do a small recap of what we have read so |
| morning and you sold it for $0.24 in the late | | | | far. The volatile market of penny stocks gives you |
| afternoon, that is a 20% gain. You should have had | | | | the opportunity to make money thru trading low |
| an exit plan to sell it at $0.24 and take your profit. | | | | cost stocks. Something as little as $0.04 gain on a |
| Always do this type of investing with a entry and | | | | $0.20 stock could mean a 20% return on your |
| exit plan before you get in. | | | | investment. Entry into the stock trading market thru |
| When working with these stocks you are working | | | | penny stocks in less expensive that stocks being |
| with low prices. Opportunity to invest is attractive for | | | | traded on the S&P 500. Having this information |
| the new-be investor. You can start without a lot of | | | | will start you on your way of investing in penny |
| money. Compared to the regular stock market, it | | | | stocks. |