Why You Should Invest In Penny Stocks?

Penny stocks/shares are very cheap stocks and they represent the small cap companies. Why trade penny stocks? Many people like to invest in this type of stocks because they can purchase a large amount for a small price and make a big return with little invested. Following are the top 10 reasons why you should invest in penny stocks:

1) Penny stocks are the easiest way to make money in a short period of time. It is suitable for those who want to make money as fast as possible.

2) It is an affordable investment and you don't need that much cash to start. Penny stock trading does not require a large initial investment. For instance, if you want to buy 2000 shares in a listed company with share price at 5 cents each, you will require an investment of $100 (2000 x $0.05) only, whereas if the shares cost $5.00 you will require an investment of $10,000 (2000 x $5).

3) It is amongst the most risky and speculative securities that can have a tremendous reward potential. If you buy a share for 1 cent and it moves to 2 cents, you've just doubled your money!

4) Buying good penny stocks can be an excellent investment because some of these young companies will one day become a blue chip.

5) Penny stocks display the greatest daily percentage gains than other kind of stocks in the market.

6) Penny stocks are the best way for new investors to learn the basics of buying and selling shares.

7) It offers a lot of excitement and potential for rewards.

8) One of the best ways to increase your overall portfolio is to trade in penny stocks.

9) Penny stock market is extremely volatile and it might interest you if you have a high tolerance for risk.

10) It is easy to predict the movement in the value of penny stock/share.

* Next: How To Buy Penny Stocks