Penny stocks and low-priced shares are not right for everyone, despite the fact that they do have a lot of great attributes. They truly can turn a small investment into a large sum of money pretty quickly (but can just as quickly wipe those dollars out).
For many people, the potential for big rewards does not outweigh the risks. Be honest with yourself, and do not feel bad about walking away from the entire concept. In general, this is often the best choice, because MOST situations involving penny stocks result in many investors taking losses.
The good news: the reason most are wasting their investment dollars is they are buying the wrong stocks, at the wrong prices, and usually for the wrong reasons. These investment risks can be easily avoided, mainly by learning a little bit about the reality of trading penny stocks, which this article will show you.
For example, the vast majority of investors buy penny stocks that trade on the Dark Markets, and almost all of them will lose money. On the other hand, by getting involved with high-quality companies on the more serious and regulated exchanges, you pick investment choices from among legitimate and up-and-coming businesses.
These are mainly serious companies, with proven business models. The penny stocks listed on the best markets just so happen to be very new, or still small, and so are trading for pennies… until they eventually trade for dollars!