For those of you inventors, you are certainly familiar with the terms of capital market, right? Of course, there are several terms of capital market that usually used, one of that is penny stocks. But, maybe, for those of you the beginner inventors, you do not really know about what penny stock is about. Although, it is important thing that the beginner inventors should know in order you can succeed in capital market that you take. Therefore, you also should know about is penny stocks a good investment? Is the penny stocks a good recommendation for investor or not? Well, lets’ we talk about it!
A little bit about penny stocks
Well, penny stocks or often referred to as junk stock is a stock that has a small nominal on each stock. Thus, penny stocks are often exploited by certain elements in playing stock because the price of penny stocks is pretty easy to go up and down without any explicit reasons. Although, eventually most of investors are interested to trade penny stocks because it can be traded by low price.
The case of penny stocks revival
Basically, the price of penny stocks is difficult to go up and actually need a long time to increase the price of penny stock itself. Even, it increases only 1 rupiah from price 50 rupiah, for example. But, eventually, there are some cases show that the price of penny stock able to go up drastically. Thus, sometimes, it attracts the investor attention to trade penny stock itself. But you should pay attention that the revival of penny stocks in capital market occurs only in a short-term. It means that it occurs for only 4 to 5 months. Then what do you think after that? Of course, the price of penny stocks will return to the previous price or 50 rupiah and you do not know when the price of penny stocks will increase. Commonly, there are some certain elements that explicit the revival of penny stocks to grab some of trader, after there are lot of trader that trade the penny stocks itself, the decrease the price of penny stocks. Its’ actually not a good stock playing, right? Of course, it is totally not a good stock playing.
Is the penny stocks a good investment?
If you ask about is penny stocks a good investment? Well, I think it is not totally a good investment because most of penny stock have poor performance if it compared with the other stocks. It seems from the increase of stocks’ price that occurs in a short-term. But, if you are still interested to trade your penny stocks in the capital market, it is not a wrong choice. But you need to pay attention toward several things if you trade your penny stocks in the capital market. You can trade your penny stock when penny stocks were undergoing a drastic revival. But, make sure to trade your penny stocks with a small capital to avoid the damage if the price of penny stocks is suddenly go down. Then, please do not keep your stock in a longer time, you should set the profit target. Thus, after you get the profit based on your target that you set up before, make sure to trade your stock before the price decreases. But, if there is a stock that better than penny stocks, it means if observed from a stable price increase, why not to choose it?
After you read a whole of this article, what do you can say about penny stocks? Is penny stocks a good investment? Or maybe, are you interested to trade penny stocks? Thus, it depends on you to trade the penny stocks or trade the other stocks aside from use penny as penny test for tires.