A lot of people try to make a quick buck buying penny stocks. Occasionally I'll even get a spam email trying to get me to buy one of these stocks. The idea is that a low priced stock can double a lot easier than a high priced stock. The likelihood though is that the low priced stock is just as likely if not more likely to drop in value or become worthless. What's the best penny stocks to buy right now? None as far as I'm concerned. Don't get burned by penny stocks. Instead of looking on the best stocks for a quick buck, focus on more expensive stocks (those over $15 a share) with strong fundamentals for your stock market investing program.
I know that watching the bank stocks and the auto stocks fall to unseen values in 2008 and the beginning of 2009 bore that out. Who would have thought that GM would have filed bankruptcy. You are much better off buying higher priced stocks with high earnings as those stocks are more likely to reach new price highs.
The next thing thing to consider is that when you buy penny stocks is that institutional investors will not invest in them. Without this driving force, the only thing that can drive the price of a penny stock up is the buying of it by individual investors. This type of stock is one that is used to scam people into thinking that they have found a real winner. When, in fact, the price of the stock will fall probably almost right after you buy it. I have a friend who tried it and he did get burned thinking that it would be easy money.
Because it is so easy to buy penny stock online, sometimes you don't really feel like you are investing a whole lot but it's still a waste of money. It's more like gambling your money away. What you want to look for are stocks that are priced above $15 per share. Stocks above these price ranges have sufficient volume and institutional support. So, when you are researching the best penny stocks to buy, remember to search for stronger stocks with good fundamentals. Don't spend your time looking for a penny stock systems review because they aren't worth it.
The next step in my process here at Stock Market Investing Today is to start going through the stocks on my watch list which I added some new ones today. They are:
- McCaffee Inc (MFE)
- Cubic Corp (CUB)
- National Presto Ind (NPK)
- PHH Corp (PHH)
- Quest Software Inc (QSFT)
- Equinix Inc (EQIX)
- Tech Data (TECD)
- AEP Industries (AEPI)
These stocks I've added are higher priced stocks that have a greater potential to hit new highs. If you want to make money in the market, you are going to want to do this too instead of buying penny stocks.
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