Penny StocksAnd What You Should

Know About Them

“Risk Comes From Not KnowingWhat You Are Doing…”

~ Warren Buffett

By Definition:Penny Stocks Are

Common Stocks That Are Traded At Low Prices

Below $5 In The US, Below £1 In the UK, and

Stocks Traded In Cents In SG

Penny Stocks Are ‘Cheap’ In Disguise

Consumer Behavior Is Often Influenced By The Pricing of

Products At Certain Price Points

As Such… Since Penny Stocks

Is “Cheap”, They Are Usually Very Attractive – Especially

To Novice Investors

The Danger of That Is…Novice Investors Tends To

Focus On The Stock Price to Gauge A Stock’s Value

Instead of Price,One Should Always Pay

Attention To The Overall Market Capitalization Than

Just The Price Alone

For Example, In Singapore

SBS Transit Is Trading At $1.70SIIC Environment Is Trading At

$0.18

Does That Mean That SIIC Environment Is A Smaller Company Since It’s Share

Price Is 10 Times As Cheap ?

A Further Check Will You That The Market Cap of SBS Transit Is $523 Million While SIIC Environment Is $1.38

Billion

Remember…Price Does Not Equate To

Value

So It’s Important That You Don’t Judge The ‘Cheapness’

ofA Stock Based on Price

Alone…

Another Thing That You Should Know About Penny

Stocks Is That They Are Often Targeted By Speculators

The Low Price of The Stock Combined With Billions of Outstanding Shares Makes

Trading of Penny Stocks Extremely Easy.

In Many Cases, You Might See A “Shark Fin”

Chart From Penny Stocks

This Is Usually Caused By Operators Who Employed

A “Pump & Dump” Strategy

Which Artificially Inflate a Stock’s Price Through false,

Misleading Positive Statements Before Selling Them at Sky-High Price…

As A Result…Many Novice Investors Will

Lose Their Pants When These Things Happen

Which Is Why You Need To Be Extremely Careful When

Trading And Investing In Penny Stocks

Another Thing About Penny Stocks Is That

They Are Loved By Stock Brokers

Stockbrokers Earn a Commission From

Executing Stock Trades.

There Is Nothing Wrong With It as They Do This For a

Living...

But If a Stockbroker Continuously Lures You to

Buy And Sell Stocks for The Sake of Commissions…

They are More Likely to Have Their Own Interests at Heart

Than Yours…

In a Nutshell, You Should Treat Penny Stocks Just Like

Any Other Stocks.

You Need To Look At Business Models, Earnings,

Performance, And The Direction of The Company

Do Not Buy Them Just Because They “Look”

Cheap…

If There Is No Growth And Profitably To A Company…

What Seems Cheap…Can Become Cheaper…

And You Don’t Want To Be Caught In That Situation…

Full Step-By-Step Case Study On How We Discovered, Evaluate & Sold This Stock For A 243.5% Return In 18 Months

Questions?Feel free to reach out to us…

Website: http://fifthperson.com/