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Tips for Mining Penny Stocks

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Different Kinds of Mining Penny Stocks

mining penny stocks

The term mining can be in relation to many things, and mining penny stocks can range from gold to uranium. Other commonly mined resources include coal, silver, diamonds, copper, and other precious and non-precious metals.  Trading these penny stocks can prove to be very lucrative to the savvy investor.

Top Performers in Mining Penny Stocks

One of the best performing mining penny stocks today is Uranium Resources (NASDAQ: URRE). The stock is extremely undervalued currently. There is growth potential of up to 516%, according to analysts, although initial resistance is expected. Midway Gold Corp. (AMEX: MDW) and Gold Reserve Inc. (AMEX: GRZ) are hot performing gold and silver mining companies. These mining penny stocks are certainly worth consideration as additions to your portfolio.

Problems of Penny Stocks

The stock market holds inherent risk, regardless of the sector. The penny stock market, however, deals with new and particularly volatile companies.  These up and comers can either skyrocket to financial success and stability, or tank, dragging your investment with them. When you choose to invest in penny stocks, you need to perform ample research, and maintain a disciplined strategy to lower your risk for these associated pitfalls. To trade mining penny stocks, you will first need to find a suitable online brokerage company. Once you do this, you can develop your investment strategy. Remember not to invest more than 20% of your capital in this risky market segment. Keep yourself grounded, and do not get carried away by the roller coaster ride that these penny stocks provide.

Penny stocks make a great addition to any portfolio. Keep in mind that diversity is the goal in any investor’s assets. Use these mining stocks to your advantage, but do not depend upon them. Mining penny stocks are a useful way to add fast growth capability to your investment portfolio.

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