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Investing in Penny Stocks can be profitable and exciting. Generally, Penny stocks are considered those stocks which have small market capitalization, ideally below 100 crores and price below 20 Rs. Penny stocks are considered as High Risk High Return stocks. 90% penny stocks are mostly loss making, but if you found out of 10% it can be very profitable.

Unitech, Core project, Jai Corporation, NMDC, KS Oils, Sesa Goa, ICSA, Pantaloon, etc. were penny stocks few years back, Now Well-Known company. Even Microsoft itself was once a penny stock. So, Penny stocks can be highly rewarding too.

Why People Invest in Penny Stocks?

1)Most of the people who buy penny stocks are small traders and investors. They are able to buy more shares in less money compare with blue chips. They can buy few shares of blue chips with capital, but 50-100 times in penny stocks with same capital.

2)They think, if they buy any penny stock at 1 Rs, it can go to 100 Rs also with risk of just 1 Rs.

3)They believe in Buy & Hold Strategy. They purchase stock and retain it for long periods of time, hoping that the stock will reach sky high in future.

4)They carried away by seeing few multibagger penny stocks that moved multi-fold in recent times. So they try to chase another one.

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Trading in stock exchange is an easy way to make money, if done smartly. However, dealing in stocks is risky and include luck to succeed at times. Therefore, many newcomers or even experienced bidders are turning to buy penny stocks. This is because it involves less money and ultimately less risk. However, a major question [...]

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Nowadays, many people are interested in earning extra income for improving their lifestyle. For this, they are tuning towards many online businesses. Some people also invest in stock market for earning huge amounts. However, investing in stock market is very risky. People with strong financial background can invest huge amounts, so that even if they [...]

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If you are interested in buying penny stocks, then it is essential for you to have perfect knowledge about these stocks. First, you have to invest your money for buying the stocks. However, the value of penny stock is $5, so make sure that you buy this stock depending upon your bankroll. Nowadays, many people [...]

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If you are a stock market investor, then it is essential for you to have good knowledge regarding stock market and trading organizations. If you are investing on any share, then you must know the position of that company in the market and its share value. However, share values do not remain same, as they [...]

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