Penny Stock Investment

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Using Research When Buying, Selling, Trading In Penny Stock Stocks

To speak about risky stocks to invest in is essentially a question of relative degree of danger. In the current day's financial environment, virtually all stocks are carrying a larger part of risk than usual. What makes risky stocks stick out from their more prosaic companions is not that they carry larger risk, but that they offer the likelihood of a bigger reward.

Even the most solid corporations are subject to external hazards such as a potential for chaos in the EU Dollar region, or the possibility that a dreadful slowdown could destabilize China. The difference is that there's no upside risk excess attached to their share price. Risky stocks are way more accordingly priced and they offer larger rewards in the event that the risk fails to appear. Finding risky stocks to invest in is the subject's answer to investors. Devoting a small piece of an individual portfolio toward more speculative firms allows investors to magnify their profits if they select wisely, yet lose a comparatively little bit of their total stake if they do not.

Some Risky Stocks To Invest In

It may come as quite a surprise to many folks, but Lehman Bros (LEHMQ), the company that will forever be associated with the breakdown of 2008 is still in business, but just hardly. Given its current share price of $0.03 a share, a one year high of $0.11, and 1 or 2 multi-billion buck suits yet to be resolved, Lehman Bros could still see a pop before being completely wound down. This is the ultimate in risky plays, since the investor is riding a classic dead cat in expectation of the possibility of the last bounce in the corpse. Yet such an event is definitely possible and could yield large, swift profits if the stock is closely monitored.

Arena Pharmaceuticals (ARNA) is a textbook high-risk versus high reward stock to entice bold stockholders. The stock is definitely captive to FDA approval of its signature weight loss drug, Lorcaserin. If the approval comes through, the stock is likely to fly high. If it doesn't, Arena is probably going to be fed to the lions. The stock represents a nearly perfect illustration of the whole reason behind putting a small bit of a portfolio toward these type of firms. Choosing the right risky stocks to invest in is the way to catapult profits miles ahead of more shy investment options.

Henry Flood is a penny stock investor who writes a regular blog about stock tips.

Become Rich With Golden Penny Stock Investment

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