Is Penny Stocks Scam or Real?

There is a debate in the investment world about the legitimacy of the Best Penny Stocks all the time. As far as the Penny Stocks are concerned, there is more of this argument here than in the nigger stocks. The argument is strengthened by the fluid nature of the Penny Stocks. One cannot actually call any Penny Stocks as the Hot Stocks for a long time; as there are so many ups and down like jumping from a mere eighty percent to four hundred percent in a matter of a day; become bad investment from being best penny stocks.

There are however ways to check the legitimacy of the real penny stocks and the scams that claim to be the hot stocks as well. One thing that is too obvious is that certain companies are on the scene for quite a long time and have been indicated as the best penny stocks and hot penny stocks by a number of experts and websites. Apart from that, the review articles and web blogs about these companies and the hot penny stocks and what stocks to pick, are also evidence as to the genuineness of these companies. The positive reviews are good, but if they are coming from just one place, doubt it for once at least! Also the sites which tell about what penny stocks to watch, also throw light on the company's previous records. If you do not look at the records before investing, you are making a big mistake. Look at the balance sheets of these companies and also the revenue reports, as to know what has been happening with them in the previous years. You don’t need to dig out the records of previous ten years for this purpose. A look at the preceding two or three years is good enough. Increasing revenue, even at a slow pace is nonetheless a good indication for a good start. A look at other documents like a business plan is an added thing that can be checked. If a company does not have a plan, and is hanging in the air, dangling from hither to thither, it is no good!

There are also certain industries that do well while the others do not. A speck of general knowledge is always going to pay back. If you do not know the basic information regarding a company, try to dig it out. There is nothing hidden or invisible in today's world. Penny Stocks and discussions regarding penny stocks to watch are all over the internet, it is very easy to type the words, hot stocks or best penny stocks, in search engines and find out the information that is available. Use these few tips and you can easily get into the mainstream of Penny Stocks.

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This is a big question in the minds of the investor, should money be invested in Penny Stocks? Nobody can give you accurate guidance, if you lose money, you will curse the person who advised you to invest in these stocks. It has to be your decision, but some tips can definitely help you to arrive at the final decision. As compared to other regular stocks, these are the best penny stocks are more vulnerable to price fluctuations; there is a very good opportunity of a big profit or big loss. One should be ready for both the situations, in case they are serious in investing in these stocks.
The most attractive thing about hot Penny stocks is its price, you do not need a huge capital and by just investing a minimum amount you get more number of shares. Probably this is the reason why people get lured to buy these stocks. Normally those stocks which come under $ 5 come in this category, and without any proper research people get attracted and start investing. Since these stocks are cheap buys, you may be able to earn good amount of money, if you are lucky enough to choose the right one.

Some of the Penny Stocks to watch do not have large number of buyers and sellers, in other words, the money invested by you may take some time to give you good returns. Sometimes it very difficult to find the right quote also, this is a situation where you cannot sell your stocks and your money remains blocked. Some of these stocks simply vanish from the major stock exchange, making it even more difficult for investor to keep a track on them. Even if you have a good risk tolerance, you may include these stocks and the percentage should be very less in your total portfolio.
Finding Best Penny Stocks, you should have a very efficient screened; firstly find a good and reputed broker, who can really make difference between making or losing money. Unfortunately there is a dearth of good Penny Stock brokers, the reason is simple, they do not want to spoil their reputation, and hence will desist from encouraging you to buy these stocks. Even some who are ready to help you will charge extra fees, as they will have to do lot of research before finally approving you about these hot stocks. You must use your proper judgment before making any investment, as you have to be prepared for good as well as bad in the transaction.