What are Pennystocks? Investements 101

Introduction to Investing

How to start off in the Investment world?

Learning about today's economy trends and making this work for you is a vital skill to insure one’s economic security, prosperity and survival. Weather you goals is to retire in ten years, twenty years, or just secure some economical savvy, well we hope we can help you with that here. With the new millennium, the Information age, it seems the “Gen Xer's” are at the helm. So how does one new to the Internet investing platform work? It is our intentions to aid you with that here and now.

I)
What are my investment goals? Retire at 40? Supplemental income, higher returns on cash than bank’s interest?

II)
It is not our intentions to determine any ones priorities, we are just sharing our experiences. We categorize portfolio’s to three chief components.
a) Cash
b) Retirement accounts
c) Investment accounts


a) Cash- Accounts that contain Monies or the equivalent (Such as low-risk, short-term securities such as CD’s = Certificates of Deposits) this is the Chief component of the three. Some determine that this should exceed 4 months of annual salary.
b) Retirement- Secondary component (more conservative) generally consists of long term investments. As one comes closer to retirement Bonds may play a more prolific role.

c) Investment accounts- Final and more aggressive of the components. This generally is more focused on short term near term. The term “Who dare’s Wins” could come into play. We advice that the investment account be the tail end of the three components.

What are Penny stocks

What Are penny stocks? pennystocks?

Penny stocks or pennystocks are shares that trade from .001 of a penny to $5.00. They currently trade in decimals.
They are much more risky than other investments, but have tremendous reward potential. Some penny stocks have gone from 25 cents to $20.00, while others have become worthless.

In the past, penny stocks or pennystocks had a bad name because of risk and lack of information about the companies and the fact that the spread between the bid and the ask were sometimes more than 50%... In addition penny stocks were considered to be easily manipulated.
Nowadays, investors are quickly learning that penny stocks represent all the small companies across America that are great and have yet to grow or be discovered.

The SEC keeps a close eye on manipulation practices and prosecutes those who break the laws.
Many investors like penny stocks because it does not take significant cash to get started, and one can own a portion of a good company and live the American dream.

Our goal is to inform you Let you know What are penny stocks, penny stocks or hot pennystocks.

The upside of penny stocks, is the ability to turn a small investment into a fortune.
The downside is the risk, volatility of the shares, and the lack of corporate transparency.
We advise anyone interested in penny stocks, pennystocks to do their Homework on the company.

With penny stocks, or pennystocks one needs to all aspects of the companies business.
Management is KEY. I have seen management squander money self seeking items rather than what’s best for the company and shareholders.
You also should look for the following things, among others, to ensure that you are only getting involved with the absolute best penny stocks.

• Market Liquidity (this will make it easier buy and sell.


• Are the shares good if they trade on the pinksheets or pink sheets, OTC.BB or otc bb, or Grey Market? Grey Market has no information is like throwing money away or at least that’s what the regulators are suggesting. We take that point of view as well. Since pinksheets.com , the pinksheet stocks have much more information available and because of pink link the electronic trading platform now available to Market Makers and pinksheet traders, the spreads have tightened. The OTC Bulletin board is like the old Nasdaq small cap.


• The NASDAQ Small Cap or AMEX, they will have to report to shareholders regularly, and must adhere to strict requirements of the exchange. OTC-BB and Pink Sheet stocks are generally less transparent or cooperative)


• Strong business plan and results (Check the financials to see if they are making more money than they are spending and if their operational plan makes sense)


• Look for a trend of improvement (Share prices go up the most when a company has momentum. If they keep making more money each year than they did the last, the shares will probably benefit as the company grows.)


• Lean heavily on the opinions of professionals (When a a newsletter or service reviews a company, and analyses all the details, it is a good starting point for you to read that report and decide if the company fits with your trading goals.)

Our goal is to find the best penny stock list.