Anyone experienced with buying stocks online knows how the Motley Fool is one of the more long-standing and well-respected Internet resources for financial information and news. Simply put, if you’re even remotely interested in trading stocks regularly, you really should be reading it several times a week.
Just a couple of days ago they published an article discussing penny stocks. This article looks at both the balance of potential and risk involved in the market of penny stock trading. As you can see from articles on my site, like my page on penny stock fraud, this balance and concern is a focus for my teachings.
So here’s a glimpse of The Fool on this matter:
The promise of outrageous returns has periodically made even the world’s best stock pickers penny stock investors. Peter Lynch has enjoyed the stock market’s super-cheap seats in the past, and still does on occasion. The Royce Low-Priced Stock fund has beaten the market for a decade by betting on stocks trading near or below $10 a share, including Sigma Designs (Nasdaq: SIGM) and Tesco (Nasdaq: TESO).
Even the All-Stars in our 130,000-plus Motley Fool CAPS community take to penny stocks. More than a few have been richly rewarded.
So why not invest in penny stocks? Well, the warning the SEC issued about them provides one excellent reason to steer clear. But what if we take the agency’s definition literally, and limit our choices to stocks trading between $1.50 and $5 a share? And what if we further seek only four- and five-star stocks with a market cap between $250 million and $2 billion? Surely our CAPS screener would return some winners, right?
Interested? Read more: The Next Million-Dollar Penny Stock
Remember to research respectable penny stock brokers and practice with paper trading before you invest real money. Most importantly, please do your due diligence.
So go forth and enjoy learning your way to a better financial future. Please return often for updates to Penny Stock Trading.
And thanks for visiting Penny Stock Trading.