Jul
14
What You Ought To Know About Bulletin Board Penny Stocks
Filed Under (Health and Fitness) by admin on 14-07-2008

For whatever the reason bulletin board penny stocks don’t attract that much attention from many traders. The majority of these stocks have a very low trading volume, nobody talks about them on CNBC, and when they announce earnings they are usually not in the billions. But who cares? Isn’t the point of trading the stock markets to make money?

Do you honestly think the rich traders in this world become rich because they are buying shares of Apple now? Probably not. They become rich because they bought Apple when it was a tiny computer company that most people wouldn’t give a second thought about. Successful traders have foresight and are able to think outside the box. Nobody cares if you buy shares of Microsoft now. But if you told people you were able to get in on the ground floor, then…….well you could image their reaction, couldn’t you?

With bulletin board penny stocks, there is fountain of potential. All companies have to start somewhere. None of these stocks should be treated as secondary just because they are not in the fortune 500.

I’ll let you in on a secret too. They are safer than all these other stocks. I know most people shake their head no when I tell them this, but it’s true. Just think about it. Let’s compare some stocks. Lets compare Exxon Mobil, which is currently $80+ a share with some 80 cent bulletin board penny stock.

Most people would say that exxon is the safer play (especially with the way oil has been trading). Well, if you’ve got a million dollar brokerage account, then it probably is. But since most people don’t have that luxury, let’s use a different number. Let’s say a person of modest means was able to scrounge up $2000 to trade the stock market.

That $2000 allows him to purchase all of about 25 shares in Exxon. That would mean that exxon would have to go up $4 a share, just so you could make $100 (not even including commission). It just doesn’t amount to anything.

Now think of the 80 cent stock. You can purchase 2500 shares. This actually amounts to something. Imagine if you were to have 2500 shares of of exxon when the company was first starting out. You can see the difference, can’t you?

The beauty is you can have a whole portfolio of bulletin board penny stocks with that $2000. See what kind of a portfolio you’ll have buying the stocks you hear about on CNBC. It’s not going to stretch too far.

Chris Braff has become an extremely successful penny stock trader. He found a system which tells you where to find penny stocks that have the most chance of increasing in value. Click here to find out more information.

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