Dealing with penny stocks can be a very risky game that can lead to significant potential losses. But, I believe that a small amount of exposure to these companies can be a good idea for their potential to skyrocket in share price overnight. Some companies that trade below $5 per share still may have an attractive business model and the ability to be profitable, which may lead more investors to the company.
When it comes to penny stocks, you should do your research in trying to find one or multiple stocks that would work for you. Just be very cautious when it comes to exposure to one company and news that could drastically swing their stock price in one direction or the other.
This post appeared first on InvestorPlace.