We are often asked which penny stocks are the best? To be frank, we have no idea which penny stock is going to take off and we don’t recommend using these stocks to our clients.
For those that don’t know, a penny stock refers to a small company’s stock that typically trades for less than $5 per share. Although some penny stocks trade on large exchanges such as the New York Stock Exchange (NYSE), most penny stocks trade via over the counter (OTC) transactions.
Penny stocks are usually associated with small companies and have low trade volume, meaning they have a lack of liquidity or ready buyers in the marketplace. As a result, investors often find it difficult to sell stock since there may not be any buyers at that time. Because of the low liquidity, investors hardly get the price that they want. Penny stocks are generally considered highly speculative. In other words, investors could lose a sizable amount or all of their investment.
So why do penny stocks hold so much allure to investors? Well, it’s simple math and amount of money required. It’s much cheaper to buy 1000 shares of a stock at $2 dollars per share than buying Amazon stock at around $1800 per share. What are we to do then?
The answer to this dilemma is stock options. Check out our past blog to find out more about Options (https://www.successoptionsgroup.com/2019/01/28/what-is-options-trading/).
One Stock Option contract allow us to control 100 shares of a company at a fraction of the cost it would take to buy those same 100 shares. Instead of investing in some no-name company, we prefer investing in bigger names, like Amazon, Google, or Apple. The best part is with our system, you can still generate the same kind of returns that you would get from owning the stock. In fact, your return on investment (ROI) may be better since you didn’t have to use as much money in the initial purchase.
If this topic has you interested and you are ready for your money to make money, set up your FREE 30 minute consultation with us at: https://www.successoptionsgroup.com/contact/booking-form/