Looking To Get Started With Penny Stocks?
If you are looking are thinking that Penny Stocks are a "Get
Rich Quick Scheme", I'm sorry to disappoint you. Although great
fortunes can be made from penny stocks, people can also lose
everything they invest in Penny Stocks. The most important
investment you can make at the start of your investment career
is to invest in education.
Why Education and not stock?
Diving head first into the stock market is a great way of losing
your money which is why we don't recommend it. The best thing to
do is to read, read and read some more before investing. One of
the best places to get free information on penny stocks and
trading methods is from the internet.
Forums, websites, news sites and eBooks are a great way to
improve your penny stock investment education. There are some
great books that you can borrow from libraries or purchase
cheaply from shops.
When reading on the internet, please be cautious of stock
recommendations and strategies and methods. Stock
recommendations and opinions from internet forums can be biased
and cannot be fully trusted without doing your own research.
Similarly, eBooks with strategies which promise great returns
usually do not work as suggested. The reason for this is, even
if the strategy worked well for the author, there is no
guarantee that it will work for everyone else because everyone
is different although you may learn something that you did not
already know.
Google News has a business section which is group for free
up-to-date information on stocks. Yahoo Finance also has good
news section and also provides free charts and company
information.
No matter who you get advice from, whether it's from a financial
consultant or friend, you should always carry out your own
additional research. You should make decisions based on facts
rather than opinions.
When you feel confident enough you can try some "test trades".
You can either keep a record of your trades on paper or you can
use a stocks simulator website where you invest with "fake"
money. There is a website called Champion Investor
(ChampInvest.com) which is great for this purpose as it also
calculates profits and losses automatically. Also, if you the
top performer of the month, you will be rewarded with