Barriers to Entry [Secrets of Penny Stocks]
by Peter Leeds on October 21st, 2016
Barriers to entry are very important when it comes to trading penny stocks well. The more difficulty new competitors will have in terms of moving into space and operating within it, the more security the existing companies in that space will enjoy.
In general, a business will be more secure in their position if they are already operating in an industry which has significant barriers to entry.
You can see Peter explaining barriers to entry, how to observe them to use them to our advantage when it comes to trading penny stocks, in the video.
The greater the barriers, the harder it will be for new competitors to show up and compete with the endemic company.
This is just one of our many videos in our new sequence of penny stocks series, which are designed to show you how to trade penny stocks very well. When you get involved with the company which has the barriers to entry keeping their competitors away, they are more likely to generate operational successes, and by extension encite an increase in the price of the shares.