Wednesday, December 1, 2010

Looking for Penny Stocks! Look no further!

That's right! Look NO further!  If you are like most people checking your email has turned into a steady stream of adverts that try to distract you from your original intent. In our current economic climate companies are creating fancy ads that make you want to click them. They add a few testimonials that make you wonder if it's to good to be true.  When I thought about writing this article I had a specific ad in mind. Unfortunately, I can't find it anymore.  This banner ad was for potential Forex traders. ForEx is, " is a worldwide decentralized over-the-counter financial market for the trading of currencies." (http://en.wikipedia.org/wiki/Foreign_exchange_market) If you scrolled over the faces in the ad, a full body shot would pop-up with a brief testimonial from what appears to be a satisfied customer.  These "new traders" were making a killing selling penny stocks over the internet. Without any prior experience, knowledge or understanding, you can work retail in the morning and trade on your lunch break! These types of schemes are all over the internet and people are still losing their house and home.

If you want to really learn how to trade do more than just read a wikipedia article. Don't just click on the link and follow the cracked yellow brick road! Take the time to do your homework! Here are a few places to start looking:

1) Join an investment club!
2) Set a goal for your investing. How much are you willing to lose to learn?
3) Gauge your ability to handle risk. If you don't have much to eat for dinner tonight, losing $10 worth of pennies might not be a good idea.
4) Learn how to read charts and graphs. Practice following a few stocks that you are interested in before you plunk your money down.
5) Read! It's just that simple! Read from the ones that succeeded and from the ones that failed, then succeeded!

Don't underestimate the value of a penny! That copper coin can cause some serious damage if you aren't prepared!

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