If you’re wondering whether or not penny stocks are worth buying, there are a few things you should consider. For starters, penny stocks are stocks that trade for less than $5 per share. They’re often smaller companies that could have potential, but they’re also considered much riskier than investments in blue chip stocks.
That said, there are definitely some pros to buying penny stocks. For one, they tend to be much cheaper than other stocks. This means you can buy more shares for your investment dollar. Additionally, penny stocks tend to be much more volatile than other stocks, meaning they can offer the potential for greater profits – but also greater losses.
Of course, there are also some serious risks to buying penny stocks. One of the biggest is that these stocks can move in value with little to no notice. This can make it hard to predict when to buy or sell, and you could end up losing money if you don’t time your trade correctly. Additionally, investing in penny stocks is a game of information. So, if you’re not willing to put in the time to research a company thoroughly before buying, you could end up making a bad investment.
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