Penny Stock Investments

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any advice on penny stock investing?

just looking to make a number of good small investments.

While I agree with what many have said about investing in penny stocks – staying away – if you are going to invest in them no matter here is some advice.

1. Only use risk capital. If this is money you need to pay bills or buy groceries, you shouldn’t be investing in the stock market period, let alone penny stocks.

2. Whenever looking at a penny stock be more critical and suspicious than you would be if it were a well established enterprise.

- This means ensuring that the company actually has real
underlying operations. You may be surprised that some penny stock companies have no functioning operations.

-Look at the financials to ensure that they have enough capital to continue their operations on an ongoing basis looking forward. Many companies in this space lack capital to fund operations, which will either lead to bankruptcy or a need to raise capital, usually having a dilutive impact on your position.

3. Do more research on the penny stock market itself such as its illiquid nature and its much more lax listing requirements – such as fewer requirements on disclosure.

Here are some good articles:

http://www.investopedia.com/articles/03/050803.asp

http://en.wikipedia.org/wiki/Penny_stock

Penny Stock Investing | Penny Stocks Investments-The Eight Figure Super Guru


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