Stock Market Trading Tip – Achieve 40 Percent + Returns

Let’s face it folks making money on the stock market is not easy. If you take a look at the normal companies covered and pushed by the mainstream stock brokers you soon realize you need a significant investment to make decent money.

There is another way! It is a little more risky Here is a stock market trading tip for you – try investing in Penny Stocks. I am currently tracking 3 Penny Stock recommendations sent to me last month and 2 out of 3 are achieving 40%+ returns!

Here are stock market trading tips and facts you should know about Penny Stocks before you consider making an investment.

1. The value per share of a Penny Stock company is generally defined as having a face value of under $1. The company will also have a market capitalization of under $500M.

2. Penny Stocks have a lower number of shareholders and people trading the stock. These means a couple of important things for the potential investor. Firstly, the stock is much more volatile meaning the price of the stock and move rapidly either up or down. Secondly, trading volume spikes erratically – there is no smooth trading pattern so selling and buying share may be more difficult.

3. The volatile nature of the Penny Stock price gives the investor the opportunity to make significant profit. However, you also need to bear in mind that a Penny Stock is considered a very speculative investment.

4. Penny Stocks attract investors because of the low face value of the share. This means you can buy a large number of shares for a relatively lower investment which is attractive due to the increased investment risk. You need to purchase a decent volume of shares to maximize your returns.

5. The amount of information on Penny Stocks is much more limited compared to mainstream stocks. Investors usually rely on a combination of Penny Stock newsletters and word of mouth recommendations. You can also use a site like Yahoo! Finance to view company information and historical share price information. Be extremely wary of penny stocks pushed by spam email. I must receive at least 5 recommendations via spam email every day – ignore them!

Penny Stocks are a smart stock market trading tip where you can start small and make a decent return. One of the issues is getting quality stock pick recommendations which I solve below.