| Penny Shares To Buy 2010 |
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| Written by Ronnie Nguyen |
| Friday, 06 August 2010 14:50 |
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So you fancy making money with penny shares as so many have tried before. It all seems simple but you need to understand what you are getting involved in. They are shares in small companies and you can buy them for literally a few pence up to around 1 sterling. The Company whose shares you want to buy will also be small in most cases.
So you fancy making money with penny shares as so many have tried before. It all seems simple but you need to understand what you are getting involved in. They are shares in small companies and you can buy them for literally a few pence up to around 1 sterling. The Company whose shares you want to buy will also be small in most cases. Penny shares must not be sold quickly because if you do, you are guaranteed to make a loss. This is because bid and offer prices, in other words buying and selling prices carry a ten percent differential. Put another way, sell early and you'll get 10% less than you paid for them. Not sensible economics at all. Don't think that penny shares will give you an overnight profit because they won't. You buy penny shares like any other shares to see the value rise, and this takes time, albeit less time than blue chip companies. For the shares to increase in value the company has to perform well, and that is important to understand The problem of course is that most companies whose shares can best be described as penny shares are there for a reason, and that is what makes them a risk. You will find good companies who are having serious problems, or perhaps they are very new. You have to find all this out, and on balance new young companies are the best bet. When it comes to risk taking people are like moths to a flame, they just can't stay away, which largely accounts for the considerable attraction of penny shares. As a piece of advice it would be don't buy, don't play unless it is money that you van afford to lose, because there is a huge risk that could happen to you. No amount of experience can prevent this. Good investments require good research, of that there is no doubt. This is as true for shares worth pennies if not more true, because the history of such companies may be hard to find. You must find out and use the internet and subscription articles will help too. You may be spending upwards of a 1000, and if your small value shares tumble by 50% you lose a lot of money. Having said that a 25% gain is spectacular in its own way as well. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Considering perhaps investing in a few penny shares investigate here firstpenny stock message boardadditionally look herepenny stock message board |