Do Investors Buy Penny Stocks Hoping to Lose Money?


The more you know and learn about penny stocks, the better your chances for making incredible gains on your investments will be. When trading penny stocks, the investors are dealing with a number of unknowns. Since most penny stocks do not have an extensive history or a proven track record, they have always been considered to be risky investments even if they show a history of success or even steady growth.

The product or service offered by many penny stocks just might become the next big thing that makes those who invest a very healthy return. Conversely, the stock could be a huge disaster that never can get its product or service to the market which many times results in a financial loss for the investors.
Hence, the more you know about penny stocks and how to trade them responsibly is the key to becoming a successful investor in any type of stock. In penny stock trading, the lack of predictability is often what steers conservative investors away from buying penny stocks. Their appetite for risk is too low to take the chance of even a small investment on a stock that may or may not explode in value.

So why do some people decide to trade penny stocks?

They have many different reasons but one thing they all have in common is that they do not constantly buy penny stocks in the hopes of losing money. What keeps them trading penny stocks are the daily and weekly opportunities to double, triple and sometimes even make enough money on a trade to retire from.

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***Reminder: never chase stocks that gap at the open and always protect your profits!

Good luck in making the Best Penny Stock picks.

2012 – Become a Millionaire!!

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