Posts Tagged ‘penny’

Penny Stock Investing | News And The Volatility Of Penny Stocks

I don’t think there is a bigger factor to the volatility of penny stocks than the keeping track of the news. This is what makes or break a company. I can’t begin to tell you how many penny stocks went from complete notoriety to becoming famous overnight just by a news release that gets sent to the public.

The key is to find small cap stocks or cheap stocks that are in industries that innovation can really bring new things to the public. For example, investing in cheap stocks that deal with alternative energy is a great idea, because many investors think that it’s the next “big thing”.

A great example of this are the many small medical companies that created unique medicine that helped cure diseases. They started off being worth a couple of quarters a share and then once the news hit, the price went up 3000% percent in one single day.

That really puts into the perspective of traders who are content with making 5% a year. It goes to show you if you have some vision and a higher risk tolerance, it can really pay off for you.

You can start doing this today by getting a big list of cheap stocks and start scouring all the news. If you find a company that’s really doing things that are outside the box from traditional businesses, then that’s a company that’s worth investing in. You could be investing in the next Microsoft and not even know it.