Wednesday, March 28, 2012

Can Penny Stock Investing Truly Make You Rich? | Avid Investor ...

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Is it truly possible to become rich investing in stocks that start at less than a dollar? While they start small, penny stock bring gains, and investors are increasingly becoming excited about this type of investment.

To maximize your earnings from your penny stock investment, it is wise to seek company information before it makes it to the media.

As soon as buzz is generated about a company, the price of the penny stock soars until it no longer falls in the category of penny stocks at all. So, how can you find the information before the media does?

The first thing you can do is research on your own. Penny stock companies make their information available for investors to find, even before it is discovered by the media.

A little research can help you determine which companies will help you maximize your investment. Sometimes you?ll get wind of a small news item where stocks aren?t even mentioned and it gives you just enough information to leverage an investment of penny stock before the company starts heavily promoting their stocks in connection with the news.

Speculation and guess work are certainly two basic ingredients in the career of a penny stock investor. Some investors prefer to wait and see what will happen with a company before they buy stock.

Of course, this approach takes away from opportunity, as when it becomes known that the company is doing well, everyone will jump in and prices will quickly go up.

It is advisable, if you are truly interested in penny stock investing, to join a penny stock advice forum, to see what other investors have to say.

You should follow through with your own research, but never discount the importance of what other investors might have to say, especially if you are new to the game.

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Source: http://avidinvestorgroup.com/2012/03/can-penny-stock-investing-truly-make-you-rich/

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