Looking For Big Penny Stocks

Micro-cap traders are always looking out for big penny stocks. After shuffling through page after page of names and data about tiny, low-priced stocks, it is always a great thrill to find something that shows a little more potential than the average penny stock. Most penny stocks have such low value for a good reason. They may not have the funding, the leadership or the necessary fundamentals to inspire confidence in any investors. Every once in a while, however, a big penny stock comes along and shows that it might have what it takes to climb the price ladder to a more respectable range and offer investors a chance to achieve some incredible returns.

The Possibilities Of Big Penny Stocks

These big penny stocks offer traders the chance to make their penny stock dreams come true. They are the stocks that live up to the stories about exponential gains. When a stock is valued at less than a few dollars, most brokers and traders refer to it as a penny stock. Their low value actually gives them a great deal of potential. If you invest in a stock worth just one dollar and it gets a fifty cent bump, that represents a possible fifty percent return if the stock is sold at that point. A fifty cent rise in value in a large cap stock means very little. With one of these big penny stocks, it can turn into a fortune.

Drawbacks to Big Penny Stocks

There are also opportunities for great losses with these stocks. That same stock valued at one dollar might drop fifty cents in value and take half your investment with it. Shrewd traders will carefully evaluate the fundamentals of big penny stocks before sinking any money into them.