Why Penny Stocks Are More Effective

Many people have turned to investing to build their nest egg, but others are just sitting on the sideline waiting to see what happens. Don't be the one sitting on the sideline while everyone else makes money, get into it yourself. First off I want to explain to you why penny stocks are more effective than the pricier ones. With so many different investments out there you are going to make a killing in almost anything you invest in.

Penny stocks are more effective because you can buy more stocks at a cheaper price than you can at a higher price. The stocks work the same, when the price goes up your investment goes up as well, which is good. Just think about this, if you buy 100 shares of ABC at $2 it cost you $200. And if you buy 10 shares of XYZ at $20 you spend $200. But what if both stocks go up.50? ABC would make $50 and XYZ only made $5. Do you see why it is more effective to trade penny stocks then it is to trade the high priced ones?

Ok, there are reasons to trade the high. The reason you trade higher priced stocks is because they are usually safer than the lower priced ones. But that is what makes penny stocks great, you never know when you might get that gem like Google, eBay, or yahoo and ride it all the way to the top and easily make a million dollars. This is why I choose to trade penny stocks and why I will never trade anything higher than $5.

If there is one thing you can learn from this it is that no matter what you do just make sure you are doing something to build your nest egg. Remember, the people who sit on the sideline never turn their small fortunes into anything, they just waste their time wishing and praying. So the next thing you need to do is find a systems that works, the money to invest, and spend a hour everyday just looking to see what the market is doing, this way you know what to invest in and what not to.


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Stock Source is a full service investor relations firm dedicated to growth stocks. We seek out innovative, emerging companies poised for growth and tell their stories to qualified, aggressive investors looking for ground floor opportunities.

We connect investors with investment prospects—cutting through the noise and churn of Wall Street to shine the spotlight on companies on their way up. These companies trade on the Nasdaq, Amex, OTCBB, and Pinksheets.