Free Penny Stock Info

What are penny stocks?

Should the novice investor investigate penny stocks or should he run for the hills and settle on a "safe stock" like Microsoft? This is a tough question to answer as there are many advantages and disadvantages in trading penny stocks for the novice trader.

In order to ascertain whether or not penny stock trading is suitable for a new investor it is necessary to identify exactly what penny stocks are.

Usually penny stocks are shares belonging to companies that are trading below $3 per share. However, they can be as low as below $1 and are shares trading below $5 are sometimes called penny stocks also.

There is a great deal of free penny stock info available online however most if it is garbage and completely worthless. If you decide to listen to free penny stock picks or follow a penny stock alert you should research the source carefully. Why are they giving you the free advice? Do they offer free services?

I usually find that you can pick up some really good penny stocks from free advice given by people using penny stock trading systems. The penny stock news these guys offer is a way of showing you how accurate their system is. Therefore by showing you how to make money they assume you will buy their product - and wouldn't you if it works!

When these sites find hot penny stocks they immediately alert you.

The problem with these types of trades is the volatility of the markets. This can be a problem for the new investor. Although they may get great penny stock info and even follow a string of great penny stock recommendations they may not make money because they are not properly trained to know exactly when to enter and exit the stock!

These type of shares can also plummet in price very quickly. This makes shares like Microsoft seem more attractive and a much safer bet than penny stocks.

However, at the time of writing Microsoft was trading at over $30 and there are several hot penny stock picks ready to explode which are currently trading at below 80cents. It is estimated that within 2 days these stocks will rise by approximately 150%.

So you can see which trades look more appealing and have the potential for much more cash! Just make sure you get trained in these markets before you do anything!