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Buy Penny Stocks

Buy Penny Stocks and Increase Your Earnings

When you buy penny stocks, you open up the door to potential earnings like you have never seen before. What many traders forget when they shun these low-priced securities are the huge upsides that they have. It is very hard for a stock worth $400 per share to make significant advances.

A gain of $5 in such a stock may sound like a lot. However, the large price tag prevents such gains from meaning much. With $40,000, you would have been able to buy only 100 shares of such a stock. You would only get $500 from the sale. When you consider how long you may have waited for such a performance and the fees that will be subtracted, it does not seem worth the risk and the effort that you put into it.

Penny stocks, though, offer the opposite opportunity. They are not as secure as that expensive stock. However, a penny stock has an incredible amount of upside. When you invest that same $40,000 in a stock worth 40 cents, you purchase 100,000 shares. Even just a five-cent increase in value will net $5,000 for you.

How to Buy Penny Shares

It is a little more difficult to find stocks that sell for such low prices. They are generally not available on the NYSE or the AMEX. Instead, you have to look for them in the over-the-counter market.

When you step into this trading environment, you lose much of the oversight that the SEC provides for major stock exchanges. In return, however, you gain a lot of freedom and possibility. Day trading in these investments allows many traders to make a daily living from their profits. With some knowledge, some basic skills and an Internet connection, you can do the same.

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