Big Money In Buying Penny Stocks
You can make big money buying penny stocks. I’m sure you’ve heard that many times from different types of people and websites. There is truth behind that statement, but that’s just half it. I’ve made more money percentage wise with penny stocks compared with mid-cap and large-cap higher price shares. That doesn’t mean that I made more money with them though.
When you come right down to it, there’s a law of averages that you need to think about when making a penny stock investment.
Just recently I bought Sirius/XM Satellite radio (NASDAQ: SIRI), for $0.05 per share and took it up to $.50 per share in just one month. That is a a gain of 900%. Those types of percentage gains can only be done with penny stocks. The reason I said that I haven’t made as much money with these type of stocks is because a year earlier I bought into a stock at $2.94 (cost average) and watch it drop down to below $2.00 in no time at all. I had more of a stake in that company than I did with the more recent one.
I’ve said it before and I’ll say it again, you need to look hard at any company that are thinking of investing or trading in. Look at their balance sheet, their debt-to-earnings ratio, listen in on the conference calls when and if they’re available. If you don’t and end up losing a big chunk of your investments, you have no one else to blame.
They are plenty of people out there that say that they can “show” you the way to picking penny stocks, but the truth of the matter is that you pick penny stocks the same way you pick any publicly traded stock, you do your research into the company first. If you can’t do that, then you shouldn’t be buying stocks in the first place.
I’ve been watching Sirius for quite some time and the reason I got into the company was because I knew that the company would find the financing that they needed. I also know that this company isn’t going anywhere anytime soon.
Tags: Buying Penny Stocks, buying stocks, invest, NASDAQ, penny stockRelated posts
Filed Under Buy Penny Stocks, Buying Penny Stocks, How To Buy Penny Stocks, Penny Stock Brokers, Penny Stock Investment, Penny Stock Picks, Penny Stocks To Buy | Leave a Comment
Tagged With Buying Penny Stocks, buying stocks, invest, NASDAQ, penny stock
Comments
Leave a Reply