Alert Penny Stock

If an investor holds stocks of a company, they are called stockholders. A penny stock is a share that would sell for less than R 1 or $ 1.

New York, NY (prHWY.com) June 28, 2012 - If an investor holds stocks of a company, they are called stockholders. A penny stock is a share that would sell for less than R 1 or $ 1. Penny stocks are stocks in small companies or young companies that are expected to achieve rapid growth over a period of time. Some companies may simply have their stock low priced and the investor trades in penny stock. Alert penny stock is a fantastic source of daily penny stocks updates and movement of stock and information on the growth of the companies.

The penny stock is considered to be highly speculative. The trick to make money is to identify the young company with the best potential. For example, Apple was selling for peanuts some twenty years back but today it is a blue chip company.

Penny stocks carry the same risk as large capital companies. The stock prices can move up and down so the capital is at risk. Some investors may want to sell their penny stock soon after buying. It is not necessary that there will be buyers for the same. The investor might have to sell at a loss. This is the built-in risk of penny stock. New companies may not be generating any revenue and so unable to pay the dividentds to the stock holders. Identify the potential of the growth of the company and wait for the penny stock company to turn into a blue chip company.

Alert penny stock guides the investor to speculative investing. There is no sure shot assurance that a company will do well but the high risk-high reward dynamics work well. A warning for the new investors is to simply invest the spare money in penny stock that one can afford to lose incase the market dips or the company closes down. Remember all companies cannot be winners so it is advisable to spread the investment across a number of companies.

Trading in penny stocks is higly risky as this is a unique market. The probability of making a profit on these penny stocks maybe beyond imagination of most traders. Alert penny stock helps the speculator/investor to know the trend of the market and then decide which stock to trade in. With years of combined experience and market study alert penny stock is a good guide for day trading as well.

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