Before you just jump into trading penny stocks, I feel it's important that you should know about the risks involved with these kind of stocks.
My goal isn't to get you to run away from trading penny stocks.
It's just to inform you.
I'm sure I don't have to explain that investing or trading in ANY market comes with risk.
If it didn't, we'd all be rich right now.
Who wouldn't love great returns without any of the risk.
But then again, I guess then it wouldn't be called "investing".
It would just be called "free money".
But with penny stocks, there are more risks involved than if you traded the more traditional, safer blue chip stocks.
But thankfully, as the risks increase, so does the rate of return, and it's more than worth it.
With the safer, more traditional stocks like Walmart or Microsoft, you gain security.
You know that you'll probably get a steady 5% return every year, without having to worry about the company going out of business, but I really doubt most traders are going crazy over 5% a year.
That's probably not the reason why you invested in the first place.
You invested because you want t BIG money.
Since many of the cheaper stocks are just starting out, it's true that some go out of business, but there are plenty that get bigger and stronger, and eventually become mid cap or large cap stocks.
So you could image how BIG of a return you can expect to make in these kind of circumstances.