Are Penny Stocks A Scam?

The answer is NO! Penny stocks are NOT a scam!

I see the words 'Don't fall for penny stock scams' on the internet far too often. The truth is, penny stocks are far from scams, these are all real companies, with real people trading their real shares on real stock markets!

There are however, far too many websites out there that promote penny stocks to appear as scams, and then they want you to buy their e-book or a paid subscription to their website to get the same free information you will find here.

Very often, the people saying that penny stocks are a scam are either

•  People that have never traded a share in their life, and think the entire stock market is a scam,
• People who are trying to sell you information you can otherwise find for free, or
• People who lost a lot of money because they thought trading penny stocks was going to make them rich overnight and they didn't do their research and acknowledge the possible risks involved!

I have to honestly say that I have jumped right in before with very little knowledge, and taken quite a loss because of it. I will also admit that I do still have a lot to learn, but my goal with this website is to help share my knowledge with other beginner traders, and to remind them that there is a risk in all forms of investment, but trading stocks, more specifically penny stocks, carries a higher amount of risk than other types of trading or investing.

Most importantly, you should not dive into the market with money that you need to pay your bills next month. You need to treat it like gambling, and only begin with what you can afford to lose. If you lose on your first shot, don't get discouraged. You will learn some strategies along the way and how to view patterns to help minimize your risk and maximize your gains.

Penny Stock List - What You Want To Know

Here at my Penny Stock List blog, you will get to know the fundamentals of what you need to learn before you get started in trading penny stocks. First, you must realize that trading penny stocks is very different from trading 'regular' stocks, because penny stocks often carry a higher volatility. The volatility of a stock is the risk it bears while holding it. This means that the stock price can change very quickly, meaning you can end up losing a lot of money very fast if you aren't careful in your penny stock picks.

Here at Penny Stock List, I will share some basic penny stock trading strategies and tips with you, as well as some of the terminology you will need to know, how to read stock charts, and share some of my resources I use to help me make the right moves when I am trading penny stocks.