What are the Risks?
There are risks associated with trading penny stocks. In many cases these risks can be mitigated or avoided altogether, but there is always the chance of losing money.
The Single Biggest Risk for Penny Stock Traders:
Never buy penny stocks that you heard about for free. This is so prevalent and dangerous, that we have devoted an entire section of this web site to The Single Biggest Risk for Penny Stock Traders. Click the link to learn more, and protect yourself.
There are also other risks, such as low visibility or low tradeability. Read more about these other risks.
Here at the Penny Stocks Guide you can learn all about how to protect yourself from the penny stock risks. Trading penny stocks can be the most exciting and rewarding type of investing around, and if you take the time to do it right, it will pay off for years and years.
The Worst Penny Stocks
Learn all about the worst penny stocks, and some tips on how to avoid them.
Did You Know?
Penny stocks have a bad name, because scammers use thinly traded shares to take advantage of people, with pump and dump schemes, and by providing manipulative information.
They also get a bad name because many investors lose money trading them, when they don't understand what their investing in, or how to trade.
Many people trade penny stocks before they learn about the easily avoidable dangers, and then complain that penny stocks are dangerous.
However, for those investors who do learn how to find good quality companies, and take the time to understand the dangers and how to avoid them, there are tremendous profits to be made.