Penny stocks are a low cost way to trade. While not actually a "penny," if you trade for under 1.00 per share, or even under 5.00 a share, it will be considered a penny stock. Some say that investing in penny stocks is very risky and that there are no such things as debt free penny stocks. However, others say that penny stocks are a great way for the beginner to begin trading. Still others would argue that all stock market trading carries some risk, as well as some rewards, and that rationale actually carries a very good point.

If you are considering investing in penny stocks and wish to remain debt-free, there are a few points that you should consider. First of all, you must be completely realistic about your finances and all of your expenditures.
Also, you should realize that all trading, even penny stocks really do carry some risk.

There is never a guarantee that your money would always work for you in the stock market, no matter how good things may go for awhile. It's just that with penny stocks, there is minimal loss if there is indeed a loss, and that's probably what would make the penny stock a good choice for those with limited income. If you do decide to go for it, do your research on the best penny stock traders to find the ones which will be most suited to you.

Check out consumer reviews to find out which ones are legit and which ones could be merely scams, of which the internet is inundated with. This is of the utmost importance, since your hard-earned money could be at stake and, chances are that you could use more money as it is. In fact, many people looking for penny stocks are those looking for a way to trade without spending a lot of money. The last thing you would want to be doing is giving your money away to scammers.

A good rule of thumb is to keep on top of the stock market news to find out how the stocks are doing and whether it would be a good time to invest in that particular stock at that time. The stock market changes rapidly, and sometimes in a matter of days, or even hours, the stock that was doing well will suddenly take a nosedive. However, if you invest wisely and do your research, there can indeed be such things as debt free penny stocks.