Good Penny Stocks For 2011

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Easy Come, Easy Go

“A fool and his money are soon parted” is a saying that is well worth bearing in mind when you think about the stock market. You might think that this sounds a little bit disparaging but the truth is that you need to remember that stocks and shares have a habit of going down as well as up.

 

It is never a good idea to invest money that you cannot afford to lose because there is always that risk. The amount you should invest initially should be quite small because no matter how much you have invested, watching the shares go up or down can be very exciting.

 

Until the property crash in 2008 it was always a safe bet to invest in property. Heading towards autumn in 2011 it may be thought that now could be a good time to think of trying to buy in the current still-depressed property market. Although house prices have increased by just over 1% in the last year that isn’t sufficient to suggest that prices may improve. It could well be the case that the housing market will experience another dip over the coming months. Many investors who had previously bought buy-to-let properties found that their fingers were severely burned, and probably won’t choose to invest in property again, other than for their own residence.

 

Determining whether or not markets will go up or down is done with spread-betting which is another type of investment. This is probably not the best course of action for someone who is new to the stock market as it has quite a bit of risk associated with it and it is not unheard of for someone to be completely wiped out if there is a sudden change in the direction of the market.

 

For those looking to encourage a teenager or a friend to consider investing, it is possible to buy one share in a company; this share is framed and can be given as a gift. Because the cost of the share is cancelled out by the present element of the share, it is not actually a good investment. But it is a great idea for a gift and the holder of even one share in a company is entitled to attend shareholders meetings. When it comes to buying one share in a company, you will have plenty to choose from such as companies like Hewlett-Packard, Amazon or Ford. There are many other companies as well selling one share for a variety of prices and all coming in a frame.

 

Although real investors would not consider this option, it is one way to come up with a unique and novel gift idea. It may provide the interest in one company and perhaps at some time in the future the recipient may decide to invest in the same company.

 

A small investor used to start with the purchase of “penny shares” and these, as the name implies, are low-priced shares. However, over the past few years these have proved quite risky with there being considerably more losses than gains.

 

You will get more information on stock trading software by simply clicking on the link.

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