So have you been formally introduced to the penny stock market yet? If not, allow me! Investor, meet the penny stock.
This is a stock which can usually be found for under $5 or under a buck.
They are used by many expert traders to buy low and sell high making large profits.
But is making BIG money really that easy when it comes to investing in penny stocks? This is generally a myth that has been floating around with people who only know so much about this market.
Half of it is true but the other half is not.
Complicating? Yes, a little but let me explain.
Experts who know how to run this type of stock are always in the profit and generally are very successful in making large sums of money from smaller investments.
They can pick up on a penny stock, keep it for as long as they need to and then come right back around and sell it for a very nice profit.
These are experts we're talking about though.
A real novice wouldn't know how to pick up on penny stocks consistently enough to make the real cheddar! Why? Because you have to be able to use multiple amounts of information and know how to apply them to your investment.
This can/is absolutely crucial to your success in the stock market and this is where many beginners can become confused.
Yes money can be made and lots of it! But this is usually true with the expert penny stock investors and this is because they know how and what to look for.
Don't get me wrong, I do believe that many beginners can have success.
This is true with any novice in their own industry, but because penny stocks involve so much risk and requires discipline along with research the margin for error becomes a lot tighter.
So what can we ultimately take from this? Penny stocks are dependent upon your own skill sets.
When you can apply your extensive research on a market good things are bound to happen and when they don't you should be able to cover your back end by minimizing any losses.
This is how BIG money is made and yes, it is more then possible when you know what you're doing!