Penny stocks buying can be a gold mine strategy if executed properly. While I certainly do not advise all to get into penny stocks, some people need quick results.
Note: While there is a possibility to double or triple your money quickly, there is also a chance to lose 100% of capital in penny stocks.
I invested in Noida Toll Bridge when it was trading at close to Rs.15 not because it was a penny stock. But it was a penny stock at that time. I invested a small portion because the company was good investment though not great investment. Now it has given me good profit in last one year.
When I invest or trade, I see for the fundamentals of the stocks. I don’t care if stock is penny stock or trading at Rs.6000 per share.
If I like the company and believe it is good I invest. Else it will be a pure trade with strict stop losses. And I trade or speculate rarely as I don’t have much time to watch the ticker constantly nowadays. If you invest or trade in penny stocks do so with strict stop losses and sale prices (both which are likely to be hit).
We have been getting lot of traffic on the post related to Best Penny Stocks in India. So thought why not post an infographic guide for Penny Stocks Buying and Trading.
Penny Stocks Trading Guide
Penny stocks are only for the high risk investor. If you’re a person who can’t afford to lose the money, don’t try buying or trading penny stocks. The success ratio in penny stocks for ordinary investor is pretty low. So again don’t invest 100% capital in penny stocks.
While you may think it is easy money there is a reason many penny stocks trade at that level. Either due to non-transparency or poor fundamentals. Why not invest in quality stocks instead and have peace of mind.
Credit: This infographic guide is from Timothy Sykes official website.
So how did you like this basic penny stocks trading and buying guide. Tell us about your experience in penny stocks below. What penny stocks have you have you invested or or trading in?