We often ask “Can I really get rich in penny stocks trading?”, the reality is it’s not impossible as many others have done it before, but you should be able to at least have a very close to a good answer to this question. What I am trying to say here is that no one would be in a better place to tell you if you can get rich trading penny stocks than you are.
If you are trading and don’t have any idea of what you are doing and you are not looking to learn the principles. That itself should answer your question. But If you are always looking to learn and learn more about the market, then I would say you have a great chance to become a great penny stocks trader one day.
Those who are rich trading penny stocks did not get there just by trading on luck. Don’t get me wrong, luck does count when it comes to trading penny stocks, but you cannot rely too heavily on pure luck. Setting yourself short like this only brings one thing, failure.
Besides both the lottery and casino, trading penny stocks is the best way in which you can make a lot of money in just a couple of hours. But the same way, it can make you loss a lot of money in just a couple of hours as well. Learning the skills to successfully trade in this market is the ultimate approach to be the trader you want to become.
Yes, you can get rich by trading penny stocks but you have to know what you are doing. The more you know about the market the less likely for you to lose your money. “It’s like buying a used car – you have to look at every aspects,” said Peter Leeds.
As you may have already heard, the penny stocks market does not have good regulations. Even Hollywood has stepped forward with a movie “The Wolf of Wall Street” to show how corrupted brokers use their lying skills to prey on penny stocks traders who do not seem to be doing their homework.
The lower is the price of a penny stock the more risky it is. Leeds says stick with penny stocks that are trading for at least 2 dollars per share in order to be successful. That tells you the majority of the penny stocks are not trade-able to the wise traders.
Here are some things to consider when buying penny stocks. Very first thing to do is to look if the company really exist. With so many scams going on over the internet you do not want to be a victim of one.
Check for the company’s products or services. Remember you make money only when the company is making money. If their products or services are not in demand there is no way it can be beneficial to you.
A company’s positive news usually increases its price. It’s always better to buy a stock when you see something good in the news about the company. That gives you a better chance at winning for the day.