Before analyzing what a penny share is and is it worth the pennies that we invest in it, we must realize one thing -“Nothing is ever cheap in this world and that the cheapest may prove to be the costliest in the end”
What is a penny share? A share that is far below its par value first of all, can be a penny share. So, if it is a share that has a pound as its face value then obviously penny stock becomes its literal meaning.
It is the age old maxim that there are two things that always govern the stock market-one is greed and the other is fear. “I would like to see my money double in the shortest possible time; I would like to get rich as quickly as possible.” These are the two things that are uppermost in a person when he even contemplates looking at these penny stocks in a big way.
Is life that easy? These penny stocks are a lure to the most ambitious [I have euphemistically used this word instead of using the term ‘greedy’] people in the market. Once again it would be more apt to call them speculators than investors, because investors go into the market with the idea of getting some steady returns. They are hence wary of their choice and think twice about the erosion of capital.
As I had written earlier, nothing is ever cheap in the world .If there is a penny stock in the market then why is it so? This is what we need to think very hard .There may be the rare ones that have fallen on bad times and there is a reversal of fortune, there may be a potential take over, there may be a turn around and the stock is being revived and given new life,–this where our wishful thinking leads us– but how many of us are able to get this privileged authentic information before it has already marched more than sixty percent from its starting point?
Whether we need to take the risk further and convince ourselves that it is after all still within the penny range and so the money invested may not be much, depends on the individual.
If you are a person who would feel guilty to lose money on account of greed, do not take the chance
.If you are a person who has borrowed money [which is fundamentally the biggest folly one can ever commit in the stock market] never take this chance
If you have a commitment to keep and you hope to fulfill it by taking this big chance then you ought not to do it because these penny stocks are the most difficult to get rid of in times of a downturn. We need no better downturns in the markets than what we have been witnessing so far.
If you are a new entrant to the stock market never do this. It is likely to be your greatest temptation because you would tend to be elated over the small amount needed for your initial investment. Close your eyes and run a mile away from the penny stock if you would like to last in the market It is also a common saying that there is a beginner’s luck that favors the new entrants. Do not forget that it may end there.
Another thing that we ought to remember is, in times of a revival in the market these penny stocks also are the favorite parcel that many players dump on the gullible man’s hands.
There may be a handful of turn around stocks but be sure that you can always get them, they need not be penny stocks but you can definitely pick them at their reasonable low prices. When the company is performing and is giving decent returns and there is growth assured, the risk element reduces; life is long and if you are going to miss one opportunity or two of multiplying your money manifold it really does not matter; you can still invest in the stock.
It would finally prove easier losing money than gaining it by investing in these penny stocks. The unwanted baby may be sitting in your own hands and you would be unable to get rid of it. The disgust caused by the scrap paper in your hand far outweighs the possible high returns awarded by the stock. Be safe than sorry. You can be very sure that in times of a dip in the market it is these penny stocks that are the most pathetic ones that lovingly cling to the lower circuit everyday.
I agree that it gives the greatest thrill when we have stumbled upon a hitherto undiscovered opportunity, and there is a huge boost to our ego when we luckily happen to make some good money in such stocks .But this is fit for the high net worth seasoned individual who has his profits fighting in the market and for whom one loss can easily be compensated by the umpteen gains in other counters. It can also be for the decently affluent upper middle class seasoned investor who has his initial capital out of the market and has only profits in the market and who can afford to take this high risk for high returns. Even then the amount allocated for this should be the lowest percentage of a portfolio.
So what is the worth of a penny share?-that of a raffle ticket, a ticket for a lucky draw!!!!!!!!!!!
I have been in the market for more than twenty years and let me assure you that the negligible number of times I invested in these penny stocks and the woeful tales I have heard from many people have only reinforced my belief that the cheapest may prove to be the costliest and this would demand a heavy price-by way of your peace of mind.
Aside from investing in stocks, you should diversify your investment. You can choose in immobilien investieren as your instrumnent. This is known to be very effective in delivering return or profit. Real estate is always a good choice of investment.
Money does not come that easily, and sensible investing is much more rewarding than adventurous investing. Opportunities cannot be more adventurous than those offered by these penny stocks.
About two months ago I found myself in dire straits. I had been babysitting for about a year, working as a nanny to two young boys. One day their father came home early and announced that he had just lost his job. Of course, that meant I was out of a job as well. It was completely unexpected but in this crumbling economy I wasn’t all that surprised. Being a single mother of two, I was in trouble. Desperate to find some source of quick income before we ran out of diapers, I Googled “make money fast” and Amazon Mechanical Turk showed up in the search.
When I first arrived at the website and had my first look around, I couldn’t believe what I was seeing. Why hadn’t I heard of this before? What a novel idea! That was my first impression. I was a little skeptical of this website at first but after a month of using Amazon Mechanical Turk, I have managed to bring in $400.00. It may not sound like much, but it is worth a million when you have no other options and find yourself in dire straits! In this article I will give an overview of how you get started on the site, what I experienced, and the pros and cons.
Here is how to get started working on Mechanical Turk. The website interface is pretty self-explanatory. There is an area for ”workers” and an area for ”employers”. If you are using the site to make money, you are a ”worker”. If you have ever bought anything online through Amazon, then you should already have an Amazon account. You will use your Amazon ID and password to sign in and work on Mechanical Turk. If you don’t already have an Amazon account, then you will have to sign up. It shouldn’t take but a few minutes to do. For sign-up at online courses, a look over the Evergreen Wealth Formula review is beneficial for fashion industries. The opening of the account should be great to meet with the fashion taste. The generation of income and revenue is great for the growth and development of the industries.
After you have an Amazon ID to use to sign into Amazon Mechanical Turk, you will need to set up an Amazon Payments account in order to get paid for your work on Mechanical Turk. Once again, if you already have an Amazon ID, setting up your Amazon Payments account is very easy. With your Amazon Payments account, you have the option of using your money to use as credits on Amazon OR transferring your money to a verified bank account. To connect your bank account to get your payments from Amazon Payments, you have to go through a verification process so they can make sure this bank account actually belongs to you. I had some trouble with this. Amazon said they were “unable to verify” my bank account. I was frustrated at first, but then found out that they can ”manually” verify your account. They did this by making two deposits to my account. I had to wait until I received these deposits, then return to my Amazon Payments page and enter the amounts of the deposits. This was how they verified my account. It was tedious and worrisome but once I entered the correct amounts of the deposits, my account was verified and I was able to transfer my earnings to my bank account! Keep in mind there is a minimum withdrawal amount of $10.00.
Now, here is the fun part–the work. On Mechanical Turk there is a list of employers, the task payment amount, and a link to get an explanation of what is expected from this ”task”. At the top of the page you may also enter a dollar amount to search for tasks. If you find someone who pays good and you like working for, you can also use the search bar to search for their available tasks. You must hit the “accept” button to begin working on a task, and the “submit” button to submit your work. I recommend never working for anyone who is not paying what the task is worth. Some people posts tasks expecting people to work for $ .02 a task!! You can do these tasks but I don’t recommend it. Also, there are people on there claiming to pay anywhere from $3.00 to $10.00 for what they call “data collection tests”, or “website test”. These are not tests at all, they are surveys fishing for your information, and to top it off, they don’t even pay you afterwards! But the good news is this, there is a button on the website for reporting such websites. If you see a site that doesn’t work or violates site guidelines, you can report it with the click of a button. After a week or two of using the site, I got familiar with who payed well and what tasks I was interested in, and before long I was making at least $30 a day completing simple tasks.
The only problem I have with the site is that there are people on there running scams. And it seems that Amazon does not filter these people out. You are able to report them as violating guidelines, but that doesn’t guarantee that they won’t be back on the site, or others like them. It is basically up to you to find out what is legitimate and what isn’t. Use the basic rule of thumb: if it sounds too good to be true, it probably is.
Overall, Amazon Mechanical Turk was a lifesaver for me. To tell the complete truth, I don’t know why I haven’t heard of it before now. It’s been around for years. While it doesn’t pay much, it is a great outlet for those in dire straits, or just to make yourself a supplemental income. The only downside is you never know how much work is going to be available, and if it’s someone you’ve never worked for before, it’s hard to know if they’ll even pay. But if you are willing to work for it, you can make several hundred dollars a month through Amazon Mechanical Turk. I know this because I have done it! However if you are looking for something to pay the rent, you’d better keep your day-job.