Penny Stock Market – Can It Make Me Rich?
Penny stock market is a highly volatile market place where stock prices can drastically fluctuate within a day causing both unbelievable gains and devastating losses. Nobody can answer the question whether penny stock market can make you rich or poor because it’s very much like gambling: you never know whether you are going to be up or down.
Pink sheets penny stocks are rather risky due to the fact that they are not traded within major stock exchange institutions and do not have to comply to meet certain criteria to be able to participate in trading. Most penny stock companies are not obligated by law to file any financial reports with SEC and comply with many conventional rules for trading at NYSE or any other recognized world stock exchange. Lack of information on some even the best penny stocks to buy might not be in your favor. If it seems nearly impossible to find any information on a certain penny stock company, it’s better to walk away.
Another factor that must be considered in regard to your odds of winning in the penny stock market is penny stock broker’s fees that may, in fact, considerably reduce your earnings. Some penny stock brokers get paid by commissions, some charge fees per transaction, while others might even have you pay per single share. However, you can cut those expenses by buying penny stocks online. Check out our article on Top 10 Places to buy penny stocks online for a list of reputable discount online brokers.
You can get rich in the penny stock market if you heavily research your list of penny stocks, learn current market trends, and learn when to sell. It might seem just too difficult for some people to decide to sell penny stocks when they are on the rise, but timing is everything when it comes to the penny stock market.
Too many odds are against you in the penny stock market that might make it too difficult to make money. However, if you stick to your penny stock investing budget, learn how to research penny stock companies and know when to sell, you can definitely turn these odds in your favor.