The temptation of high gain using penny stocks is something that many people have banked on for years. Unless you wish to learn penny stocks, and learn them well, this form of investing is not for you. The world of penny stocks is perilous and can be fraught with danger for the novice, but the skilled investor may welcome the challenge and reap the rewards.

Many stock brokers can be found on line which some feel is the first drawback of investing. Most of us would prefer to sit across from a broker and discuss the ins and outs of this type of trading. Sadly, there are few brokers that will take on penny trading due to the risk involved. This is not to say that all online brokers are bad, but it makes it tougher to sort out the good from the bad.

While major markets such as the NYSE are protected by the many required aspects of the Securities Exchange Commission, there is nothing in place to guard the stock investor. The investor in this stock has to learn this types of stocks for themselves and set their own rules and regulations under which they will invest.

Occasionally penny stocks are abused for the purpose of manipulating the market. This is an illegal action and many companies are presently under review for these kinds of actions. They will promise you anything to get you to invest, and then they will literally take your money and run.

On the flip side of the coin, one is to be reminded that the Ford Motor Company was once a penny stock. Sprint was another, along with Sun Microsystems. So to say that all these companies fail is an erroneous statement. The challenge is to pick the ones that will succeed as well as the aforementioned companies.

The best advice to the penny investor is to learn these types of stocks and not allow yourself to be dissuaded by web sites that issue false reports and make misleading statements in the hope of luring you to a company that they wish to use as bait to manipulate prices.

written by: http://penny-stocks.wikidot.com/penny-stocks-1

One of the easiest things to learn is investing in stocks for beginners for many reasons. For one thing, you have many resources available from books and journals to online sites and television shows. For another thing, once you understand the basic concepts of stock trades and investments, you are well on your way to learning the advanced ideas.

Let’s start with the stock market. Basically, it is a place where the shares of stocks of publicly-traded companies are bought and sold by traders and investors. The stock brokers act as the middlemen in both sides of the transaction mainly to keep order in what can be a chaotic marketplace. Keep in mind, however, that the stock market can either have a physical location like the NYSE Euronext or just an online site like the NASDAQ.

Nowadays, manuals on investing in stocks for beginners emphasize on the fact that small-time investors can compete with their big-time counterparts. This is largely due to the way the Internet has revolutionized how we do business. The important thing with stock market investments even when you are not in the elite club is to know exactly what you are doing and why you are doing it.

Moving on to success as a stock investor, it cannot be overemphasized that it is not a get-rich quick scheme. You have to pour serious thought, plenty of time and admirable discipline in making consistent profits both in the short term and long term periods. If you do not have the patience, persistence and passion for profits, then we suggest not becoming a stock investor.

But if you still want to proceed, read the following tips for investing in stocks for beginners:

1. The first order of the day would be formulating an entry and exit strategy, which reflects your investment goals especially in terms of how much profit you desire and how much loss you can tolerate.

2. Always do your research before investing in any company. You have to look at its financial statements, quality of management and strength of business plan, all of which will provide clues as to the direction it will be taking. Keep in mind that, as an investor, you are now an owner of the company and, hence, it is to your best interest that the company is as strong as can be.

3. Make it as simple as possible. Sure, the OTCBB stock market can be daunting to understand at first but once you do, it can usually be whittled down to a few simple things. Often, too, you have to tune out the noise.

As a beginner investor, it pays to acquire as much knowledge, experience and wisdom as possible where the stock market is concerned. Just keeping chipping away at the layers of knowledge and you will eventually become as successful as the big-time players.