How To Make Millions on a $100 Investment – Buying Penny Stocks

This is a companion post to my Bukisa article “Beginner’s Guidebook to Acquiring Penny Stocks”

What is a Penny Stock?

In layman’s terms, a penny stock is simply a widespread stock that trades for less that per share and generally is traded on the ‘over the counter’ stock marketplace (OTC) — outdoors of the significant stock exchanges this kind of as the NYSE or NASDAQ.

And, true to their name, a wonderful amount of penny stocks really trade for pennies and a lot of for fractions of pennies.

Many new organizations get their commence: as ‘penny stock companies’.

Penny Stock Organizations:

In order to raise funds and get their enterprise off the ground, several new organizations will offer common shares of stock in their companies. Simply because they are unknown and unproven, they are usually viewed by investors as currently being quite risky. So, their initial offering share prices can literally be valued at well under 1 penny per share.

In fact, I have often owned stock in a number of firms for which I paid just .0001 per share!

* That amounts to 1 million shares for !  (1,000,000 shares X .0001 = ).

How to Make Millions on a Investment – Acquiring Penny Stocks:

1.  Acquire one particular million shares of penny stocks at .0001 per share. ()

two. The company actually requires off and their stock price tag increases to per share or more!

3. Your a single million shares is now worth at least One particular MILLION DOLLARS!

Acquiring Started out Acquiring Penny Stocks:

Very first, besides some funds to invest, you happen to be going to require either a stock broker or an online trading account. I use Scottrade.com, but there are numerous other folks to choose from like E*Trade, Charles Schwab, etc.

These on the web traders will require a minimum deposit to get began and will charge you a small commission when you trade stocks (either buying or promoting).

Second, after your trading account is set up and you have deposited some money, you next need to have to decide what stocks you want to get. All you want to do to uncover concepts on stocks to get is to Google the terms “penny stocks” or “hot penny stocks” and you are going to locate dozens of websites delivering penny stock suggestions. Here’s a hyperlink that I use frequently: http://www.thehotpennystocks.com/

The moment you’ve picked a penny stock or two to purchase, you happen to be all set.

The on the internet trading firm will ask you for the company name or its stock symbol that you want to purchase. Then, you want to decide how numerous shares you want to get, etc. Essentially, they lead you right via it.

These are the fundamentals!

Personally, I did not read any books beforehand — I just waded in and learned as I went. I didn’t even have the weak suggestions that I’m offering you with!

If you would like to find out a lot more, here’s a link to a Cost-free on the internet book by penny stocks guru Peter Leeds titled “Understanding Penny Stocks”:http://www.pennystocks.org/

Buying Penny Stocks = Gambling

Why would you gamble your challenging earned moey at purchasing penny stocks?

First of all, it’s enjoyable to purchase penny stocks and comply with what they do. Second, there’s usually the opportunity that you will choose a single that could turn into the up coming Microsoft or Google!

But, I have to caution you on a couple of points:

1. This is just like Las Vegas or Atlantic City — unless you can afford to lose the funds, don’t play the game.

two. This can be addicting!

On the other hand, you just could pick one and grow to be a millionaire!

Great luck!

 

 

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