3 Reasons to Buy and Sell Penny Stocks

How many times have you kicked yourself for not investing in some of today's leading stocks back when they were actually affordable? 

The majority of Americans find it nearly impossible to buy stock in their favorite companies because they're simply too expensive. For instance, Google is now available for $780 per share and Apple at $422 per share.

And then there is the fear that many of the leading stocks are inflated and poised to fall. Paul Sommerville, financial advisor and contributor to the Independent, warns "the next few years will be characterized by gut-wrenching sell-offs."

This leaves small investors looking for fresh investments that have the power to reap major rewards in the near future. And that's where penny stocks come in— offering you the opportunity to get in on the ground floor.

How It Works
When smaller companies go public and make their stocks available for less than a dollar per share, their shares are called "penny stocks."  Small investors can easily and affordably purchase them. Regulated by the SEC and other official authorities, they are traded in "over-the-counter" markets rather than the NYSE.

There are a number of reasons to consider purchasing penny stocks, but here are the three most compelling:

1. Small Investment for Many Shares
With penny stocks, you have the power to purchase thousands of stock shares for a rather small investment. For example, if a technology company is selling shares at 10 cents and you make $500 investment, you can own 5,000 shares. If the stock rises to just $1.00, your investment will turn into $5,000.

This gives you the opportunity to purchase stakes in several companies at a time (with potential for major gains), rather than investing in one or two overpriced NYSE stocks that may earn you a couple dollars here and there.

2. Huge Returns in a Short Amount of Time
With some help on the research side, you can discover penny stocks ready to explode overnight. Unlike most stocks on the NYSE that can take years to grow, it is common for penny stocks to double and even triple in a single day.

3. Easy to Buy and Sell
Penny stocks are traded exactly like major stocks. All you need is to establish an online trading account to buy and sell, or you can use a traditional broker to place your trades.

A Powerful Trick of the Trade
As you're probably aware, any stock has a certain degree of risk that comes along with it. This is why it's essential for you to do your homework and carefully research each penny stock you purchase.

One of the very best tools on the market for researching and tracking penny stocks is Billionaire Stocks. The site tracks the market daily, identifies high potential companies, and offers regular hot picks with their really useful email newsletter.

One of the biggest selling points of Billionaire Stocks is that the service is completely free. To subscribe, all you have to do is enter your e-mail address, and you will never be asked to pay.

Once you dive in and learn more about penny stocks, you will be amazed at the numerous opportunities available. The secret to your success is the perfect combination of research and education. The more you know, the more likely you will reap amazing rewards!