1. For a penny stock investor, the cost isn't all that matters
when it comes to choosing what company you wish to
invest with. Although the initial investment is low, the
investor must also believe in the company's potential for
future earnings.
2. The company's performance in the marketplace is a
valuable piece of information when one is trying to assess
a company. Prediction of the market investors' reaction in
regard to this particular company will tell the story about
this company's potential to bring in profits.
3. Expectations are often based on financial forecasts and
growth of a company. A slow and steady growth in value
indicates a company as being a potentially good
investment.
4. Slow, gradual growth of a penny stock's value usually
means it has the potential to triple or quadruple its value
quickly and easily. If, instead, the value goes up very fast
when the market first opens, it is not good practice to
jump on the stock until you can see if the value remains
steady.
5. Very often penny stocks rise very rapidly only to fall back,
sometimes to a lower value than they had in the
beginning. Waiting out for the fall allows you the
opportunity to invest into this penny stock without fear of
losing from false demand.
6. Some investors who turn their noses up at penny stock
investing will consider dabbling in it if they find a company
that shows amazing promise and happens to offer penny
stocks as their only trading capacity.
7. Penny stocks allow you to gain decent earnings using
minimum capital, and for that reason they are very
popular with new investors.
8. Even if a little unpredictable, penny stocks offer the
chance to earn considerable amounts and to boost the
investor's self-esteem in preparation for future
investments.
9. It's a little more feasible than playing the lottery, and
millions of people spend a portion of every paycheck on
lottery tickets. With penny stocks, chance isn't the only
thing determining if someone will win, since some
calculations are possible to steer the investor toward the
best choice.