By Shawna Frost
You don't need a lot of money to start investing in penny shares in 2014 - but they could make you a potential fortune in less than 12 months...
Penny stock is the only stock class with the power to double your investment, virtually overnight. You don't need to pile tens of thousands into big, expensive stocks like Apple or Exxon to make serious money investing. Many investors who have been successfully investing for over 30 years, say they would not touch lumbering blue-chips with a barge pole. As they believe the best, and most rewarding, way to make money investing is with "penny stocks... "
What makes penny stocks different from other "normal" stocks is that they're cheap. Dirt cheap. Shares can go for as little as half a penny to a few pounds. So even small (or first time) investors can afford to play the market. And don't worry if you've never bought a stock before, it's as simple as checking your email (or making a quick phone call). Anyone can do it.
Rarely featured in the press and "off limits" to most investors, because the big fund managers can't trade them...
Better still, these stocks can deliver truly explosive gains. In fact, they're potentially the most profitable stocks on the US and UK market.
With a big "blue chip" stock it can take years for a $50 share to turn into $100. But with a penny stock, a 20 cent share can become 40 cent overnight. After all, the share price only has to go up by 20 cents!
So with penny stocks you could potentially double your money at lightning speed.
Proven to Outperform Bigger Stocks
The little Known Story of a Penny Stock Billionaire...
In 1939 a young trader called John Templeton bought 100 shares of every company trading under $1 per share. Four years later he had multiplied his money many times over - even though some of the companies he invested in went bankrupt. This is the profitability of penny stocks.
John retired a billionaire, and lived out the rest of his days in the sunny, carefree Bahamas. And renowned investment researcher Roger Ibbotson points out that - "[penny stocks] have outperformed large-cap stocks... over the last 80 years." Eighty years.
As you can see, penny shares have trounced blue-chips for well over half a century. But most investors have no idea of the colossal power of penny shares. It's somewhat of an industry secret, one I'm letting you in on today.
This chart is a reminder of why I love small caps so much. They have consistently beaten the UK market since 1955.
So you see, when it comes to share dealing, I believe there's only ONE way to make serious money. I'm not saying that you're guaranteed anything. I'm saying you have a chance - a genuine chance - of making some real money.
So why Isn't Everyone Doing This?
If penny traits are so great, you'd expect everyone to harness their amazing profit building potential and get rich. But that's not the case at all. You see penny stocks are so small; the "big boys" in the City can't trade them.
This is because big investment firms can buy up millions of shares at a time... but if the company they buy into is a penny trait, the share price flies through the roof with a big order.
Penny shares have outperformed blue-chips, every single year, for the past 57 years
This immediately cuts into their potential profits, so penny investments just aren't a sensible way to play the market, when you're a City fat cat. However they're great for the little guy and first time investors.
Why you won't find these tips in the mainstream media
Because the City ignores them, the mainstream media does too. This is why most people don't know about penny stocks, or just don't trust them. Because they don't get the same media attention big blue chip stocks like Pfizer and Barclays do.
But just because penny traits aren't mentioned on the news or some bobble head's TV show, doesn't mean there's anything wrong with them. In fact it's better this way...
If you're willing to invest some spare cash you aren't depending on in penny shares, I really believe you'll be better positioned to profit. Of course, penny shares are riskier than investing big name companies. But with bigger risks comes the chance of much bigger rewards...
Shawna Frost works as a Financial Analyst with some good US Stock Exchange Consultancy companies. She writes about Penny Stock tips,Stock Market Tips and shares her experience regarding the Hot Stock Tips and US Stock Exchange tips with the readers.
Article Source: http://EzineArticles.com/?expert=Shawna_Frost
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