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investing in penny stocks - with current unemployment rates and the market it's a bad idea


investing in penny stocks is (go here) if you are a beginner

Penny stocks are extremely risky investments, and most investors should not try to invest in such securities. Penny stocks are generally defined as securities with a market price of less than $5.00. The reason why these types of stocks are so risky is because generally they are companies of poor management, a poor industry, or a sector that is currently under a lot of pressure. The average investor should stay away from penny stocks as they have a far too great risk vs.reward ratio. However if you know something about the penny stocks that you are investing in then you have a much better chance of being successful. Are you actually gambling when you play the market with low price stocks?


Investors who attempt to profit from penny stocks should have a good solid reason why they are buying them. If you are find penny stocks for no particular reason then you are probably a gambling investor. However I have bought penny stocks before, one that I have bought recently is sirius satellite radio incorporated with a very small amount of money. I think the risk is reasonable but it's extra money and I know they could go broke.

This is because I believe that their merger with XM satellite radio will cause their stock price to increase in the LONG RUN. I did not invest a large sum of money in them simply because it would be far too much to lose.

investing in penny stocks what have you bought?

However I had a good-reasonable idea as to why they would go up. Sense sirius satellite radio and XM satellite radio were both seriously taking money away from each other-once they can merge they are now a monopoly company with a better chance of succeeding in the market I COULD BE WRONG HOWEVER AS ONLY TIME WILL TELL.

This is not some pure gambling rally or a pie in the sky idea but rather a calculated risk. Admittedly it is a higher calculated risk than most investors would be willing to take but is still calculated. A miscalculated risk would be to buy stocks or any other investment that is cheap because a friend told you, your broker told you, you look at some other site. You should only but penny stocks based on your own reasonable research. No matter what you invest in if you hire an investment broker be careful ALSO the moral of the story is NEVER EVERY invest a lot of money into a penny stocks it's simply not worth your time and way too risky.