Fri, 15 Apr 2011

1:06 AM - top penny stocks - Get Free Penny Stock Alerts and Learn about Interesting Companies to Invest In

Low cap stocks can return over 100% on investment in a very short amount of time - sometimes in mere minutes. This is part of the allure of penny stocks, but it is also why penny stocks can be risky. The penny stock market and its radical swings is a difficult market to navigate. Free penny stock alerts can save potential investors lots of time. Understanding a single stock takes hours, and wading through all the penny stock options out there could easily be a full time commitment. But opening your email and reading convenient top penny stocks alerts only takes minutes out of your busy day. Read the free stock newsletter and find out about interesting penny stocks with potential, then do the research and make sure it's a viable investment for your portfolio.
Penny stocks are low cap stocks trading for less than $5 per share. They provide the option to investors to get in on the stock market without investing a lot of money in a single company. Up and coming companies in many growing sectors are currently trading as penny stocks, and have the potential to return amazing gains to savvy investors. Finding an established company with expensive shares that is about to double or triple its value is like finding a needle in a hay stack. But with the best penny stocks, this phenomenon actually happens. Remember, all stock investments come with risk, so do research on companies before investing and have an investment strategy.
The first step to investing in the stock market is to open a brokerage account. A brokerage account is similar to a bank account, but the money in it is used to buy and sell stocks. There are several different investment styles, depending on your needs, means, and personality. For instance, there is day trading, also known as short term investing. Day trading requires a lot of time to watch the market and trade at the right moment. Long term investments don't require as much time monitoring stocks on a daily basis, but stocks should be chosen with greater care. All investing strategies must have an exit plan. Know before investing what the maximum loss for that stock is, and know when to cut your losses and sell, even if it means losing money. Responsible financiers always know their limits and avoid getting too deep into a company, or losing more than they can afford.

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