Saving up money to invest in an asset can often take years for the average person and so when investing that money they need to be extra careful on where and how they stand to gain maximum returns on their investments.
Penny stocks are notorious for being high-risk stocks that can rise and fall sharply making it a volatile and highly speculative market to invest in. However, traders like Timothy Sykes have found tremendous success in this otherwise volatile market and now seeks to share his secrets and knowledge with those passionate enough to learn the ropes and climb there way up to be future millionaires!
If you are a trader or are seeking to understand the ins and outs of stock trading then you may want to first learn all there is to know about the penny stock industry and the regulations that govern it.
What Are Penny Stocks? Where Can I Buy Them?
Simply put penny stocks are any stock that has a face value of less than $5. Blue-chip stocks can be quite expensive and often beyond the reach of an average investor and are generally much more stable offering minimal returns as growth is relatively stagnant.
The penny stock market is a lot more volatile and has several trading restrictions and loopholes that allow for large volume trading of stocks that are literally worth pennies. However, any changes made to the price of these stocks can often result in substantial gains and losses making them riskier but if done right can result in massive gains in a relatively short span of time.
Penny stocks can be bought from a few brokerage firms and are traded on the Pink Sheets or the FINRA’s OTC Bulletin Board (OTCBB). Pink sheet companies are especially high-risk investments as these organizations are not required to file with the Securities and Exchange Commission (SEC).
Why Do Many Consider Investing In Penny Stocks a Scam?
Any profession that offers high risk and high rewards are often termed as “scamming” or “fraudulent” professions that are best to stay away from. However, penny stock trading isn’t a scam or a form of betting as it requires extensive knowledge, experience, analytical skills, and the right attitude to make money in this otherwise highly speculative market.
They are some like Timothy Sykes who have made their entire livelihood from trading in penny stocks and selling educational material surrounding its mechanics. If you have dipped into making investments in penny stocks before or have knowledge about this form of trading the name Timothy Sykes would most likely have popped up somewhere or the other.
Timothy Sykes is famous for turning $12,000 and some change of Barmitzvah money into millions by investing them into penny stocks. Often considered as many to be a Guru when it comes to penny stock trading Timothy Sykes like many others who have made money in penny stocks are often accused of being scammers or fraudsters but the reality is that such individuals have better insight and the courage to takes risks where others are hesitant.
Penny stock trading is a real thing and if you spend the time and money learning about the ins and outs of how this volatile market works you stand to gain a lot more bang from your buck. Care and caution are fundamental when it comes to investing in penny stocks and luck is but a small portion of the recipe to success.
Knowledge & Caution
Any top-trader knows the importance of having the knowledge and being cautious when it comes to making investments. To make the best trades you need insight and this insight can only come with studying analytics, history and future prospects of a given company or stock. When to buy and when to sell isn’t just about intuition but rather it is related to having the right knowledge and exercising caution when necessary.
They are many who have made millions of dollars trading and investing in stocks and millions more that have lost it all from bad calls and judgments. Even experienced traders stand to make mistakes but they know how to minimize their losses and maximize returns which helps them always come out on top.
Suck skills and in-depth knowledge needs to be studied and practiced before it can be implemented. Today, the most successful courses offered for Penny Stock trading are Timothy Sykes Millionaire Challenge and the Penny Stocks Trading Challenge that offers all the necessary tips and skills needed to become a successful penny stock trader. Even though the course is expensive it is in-depth and has helped make many average traders into highly successful ones.
Is Investing In Penny Stocks A Good Idea?
Penny stock trading is a risky business so it is always advisable to only invest a small portion of your current investment portfolio in penny stocks. If you are a first-time investor it is best to only invest about 5-10% of your investable cash in penny stocks as there is a high chance to both lose and gain money.
Since the penny stock market is so volatile and speculative you should only invest what you are comfortable losing. No one likes to lose but losing is as much a part of the game as winning. A good trader knows when to lose small and win big which is the recipe for success.
A good investment sum if you are starting out and learning the ropes of penny stock trading is about $2000. This amount of money allows you to invest in multiple businesses that you believe have a chance of growing in the near future. You can build a small portfolio for the sum and play with that money for a while before investing more if you find success.
Penny stocks are risky but if you know what you are doing, have the knowledge and expertise, and exercise caution when necessary you stand to gain large return on relatively small investments compared to buying and selling blue-chip stocks.