Your Phobia of Penny Stocks

Over the last 14 years working with Peter Leeds Penny Stocks, our team has discovered that most penny stock traders lose money.

For each person that's bringing in ten bucks, 10 others have lost a dollar. In other words, the best penny stock traders are going to clean up, while the majority will lose money.

If you're interested in becoming one of those big winners, step number one should be to decide if penny stocks are indeed appropriate for you. Consider your investment goals, your overall strategy, and tolerance for risk.

Do not trade penny stocks if you lose sleep over them, or get stressed out. The experience should be fun, and you should learn a lot, otherwise you may want to rethink being involved at all.

It's also important to keep your expectations realistic. You've probably heard stories about major penny stock moves that turned people into overnight millionaires, or at least you're buddy brags about the $1,000 he's made. In the mean time, you may not hear about all the people who lost money, because they may be more likely to keep this to themselves. In the end, most penny stock traders have an experience that is somewhere between these two extremes.

Talk to your financial planner if you want to, but I'll save you the trouble. Here's whats they'll say:
• "it's a scam"
• "It's too risky"
• "Keep away from penny stocks"

Believe it or not, I happen to agree with them! Penny stocks are often dangerous, and sometimes used by con-artists to pump and dump thinly traded shares. Most penny stocks will potentially cost you money. In that sense, I'll agree with the financial planners.

However, there is another side to the story:

If you find the 5% of penny stocks which represent high quality investments, it can be one of the most lucrative ways to wealth building.

To increase your odds of finding that top 5%, you should:
• learn about stock market investing
• practice without money (paper trade)
• get professional analyst picks
• read Understanding Penny Stocks

Just remember, be honest with yourself, and decide if speculative trading like this actually is appropriate for you.

Peter Leeds and his team research and analyze penny stocks, looking for companies of the highest quality. Start your free trial today.

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