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How youth can invest in penny stocks

By Edited Nov 13, 2013 1 3

Understanding Investments with youth today.

Youth today are always wondering about what our life will be like in the future. We are always thinking about what we need to have to be successful . It may be a new pair of shoes, a video game , and or a new car. Youth today don't understand that in order for you to have or own the extra objects, you must first build a decent amount of capital.

Capital is the money that you can use toward stuff that you would like. It can also be a good tool to build your investment upon. It only takes a little bit of money (capital) to start building up.I will also be telling you and discussing about the best and easiest ways to make money.

Another subject that we will be working on is making short , mid, and long term goals to help us along our way toward a more financial dependence, and freedom. Analyzing what we want to do in the short term goals will help in making our midterm and long term goals work.

Penny Stocks How To

I will be talking to you about penny stocks.Here is a decent explanation about what penny stocks are.A penny stock in a stock that you can buy at under five dollars a share.You maybe wondering about why penny stocks. Not Google , AOL or Yahoo. Those are all good stocks to buy and yes they are not penny stocks. When you buy higher priced stocks like Google you are spending in excess of $200-$500 dollars for ONE share. If you would buy penny stock you can spend $500 dollars on 50,000, yes that's right fifty thousand share for five hundred dollars. Now what sounds better 1 stock or 50000.

Higher priced stocks
You do get the comfort to know when you buy google that its a strong stock and dependable company. It may rise or fall 10-20 dollars a day. Nice you make the 10 or 20 dollars for that day, but in the long run you may loose that much or not gain any. We also have to understand that you have only 1 share in that stock. That means you only times the win or loss buy 1.

Penny stocks

Penny stocks is largely know as gambling of the stock market. A no win situation many people have told me. I have done hours or research and have uncovered many useful information to make to earlier statement untrue. As is for everything there is consent risk in your life. One must understand that first to become stable. penny stocks are fun in very good way to make the CAPITAL that we all need to have to live comfortable.

I want to show you real quick on what i mean about penny stocks. Say we dont want to spend to much money on stocks and want to diversity our porfolio to make it safe. We will spend 500 dollars on a .01 cent stock that has just come to play in the stocks. We buy the maximum avalible amount that we can afford. That gives us 50,000 stocks of lets say UMIII at .01 cents. Its currently 0900 on monday morning and you have 50,000 stocks.You watch you stock all day with no move. It moves up.2 cents around 1,100, 50,000 shares at .01 cent moves up to.03 cent due to good market performance. You have made in excess of 1000 dollars in a mere 2 hours.

Understanding that you need quantity to make money is a big thing to overcome. Spending that 500 dollars on the penny stock vs Google per sae was smarter.



Jan 9, 2011 3:02pm
Good info on penny stock. I like to invest, but have never tried these type of stocks before.
Jan 10, 2011 8:19am
They are a risk, but can explode and make amazing money.
Feb 9, 2011 4:33pm
It's imperative that you use a discount broker account as fees are reduced. The established brokers will try to convince you not to invest in such risky stocks. Be careful.
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