We talk a lot about how to invest your money correctly with clients at Hacker Accounting. So when looking at stocks, you have to take all the options into account. See what are right for you – and more importantly – what you’re okay with risking.
As many people know, penny stocks can be risky. They are typically based on a small market cap and unbelievably low price. These stocks, because of traits like that, are most susceptible to scams and schemes. However, the good penny stocks are those from small companies just starting out – which can reap real rewards.
Ultimately – penny stocks are made for the people who are comfortable with a little risk. If you do better with predictable stocks that work on a schedule, penny stocks are not for you. You also will need to learn how to spot the “pump and dump” schemes.
Penny stocks can represent a huge investment opportunity, but you will need to learn how to spot the legitimate companies that are being build properly, and not just a quick scheme.
Have investment questions? Give Hacker Accounting a call at (602) 375-5251