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Investing in shares: How to buy penny stocks

by , 14 July 2015

Penny stocks attract a lot of investors as they offer you the chance to make large profits, sometimes in a short period of time.

But you have to be careful investing in penny stocks. Not every penny stock on the stock market has the potential to make you a lot of money.

So how can you buy the best penny stocks on the market? And how much should you invest?

Read on to find out…


To buy the best penny stocks you need to do your research


Research is paramount to uncovering the best penny stocks to buy. You want to find out everything you can about a penny stock before investing in it.

Have a look at the company’s website. If you can’t find the information you’re looking for, contact the company directly.

To hone in on the penny stocks with the best future potential, look for a catalyst that’s going to help them succeed. For instance, if a company is about to launch a major product on the market, Kyle Anderson in Money Morning US explains.

Other opportunities lie with penny stocks that could be buyout candidates from larger competitors. Innovative technology companies are also worthwhile looking at as technology continues to revolutionise many aspects of our lives.


How much to invest in penny stocks


It’s prudent to allocate a small portion of your portfolio to invest in the best penny stocks you’ve found.

Stick to investing 2% of your investing capital in each penny stock. This gives you the opportunity to make large profits, but also protects your portfolio from the downside too.

By doing this and investing in the very best penny stocks you uncover, you give yourself a better chance of success.

So there you have it. How to buy penny stocks.

*********** Hot off the press ************

Did you miss out on Francois Joubert’s Penny Stock Boot Camp on the 20th of June?

It’s not too late. We filmed every presentation. Every investment idea.

You can still eavesdrop on the entire event right here.

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Investing in shares: How to buy penny stocks
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