Penny Stocks Can Make Big Profits

by Robert Church
(Los Angeles)

Penny stocks can increase ones trading profits in spades with a lot less risk. One need to be able to do a quick scan of the thousands of penny stocks that there is in the market and knows which ones have the highest percentage of going up.

Editor's Comment: Thank you for your thoughts Robert. You are quite right, there certainly are profits to be had from finding overlooked or undervalued penny shares.

But as this article about stock market traders suggests, many traders actually go broke in the first twelve months. In other words, just like learning to play poker, learning to trade can be expensive while a person learns the core skills...

As always, one of the key skills is being able to understand, assess and price the risks being taken with an investment. Bearing in mind some of the other key factors of penny stocks (smaller companies, less market liquidity, greater concentration of shareholdings in the hands of a few key people, etc) being able to understand the risks really is important!

However, one of the overriding appeals of small, high-growth companies for traders and investors is their potential to grow quickly and for that to be translated into market value and stock price.