Penny Stock Investing is no different than other types of stocks or investments in general. There are ups and downs, risk and reward — it's all there!
These are stocks that are trading for less than $5 per share. The term “penny stocks” generally refers to investments that are low-priced but high risk.
Many people invest in penny stocks because they hope to find the next big thing.
More often than not, penny stocks are difficult to get into and out of because of their low liquidity. There is also a strong likelihood that they're scams, or otherwise bad investments.
Penny stocks may also see increases in value due to catalysts such as upcoming news or new products.
Penny Stock Investing can make you rich, but it's not easy.