Do you suggest investing in penny stocks for the long term?
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Things to Know Before Investing in Penny Stocks
Investing your total capital in penny stocks is not always a good idea, instead you allocate 10-20% of your capital. Since investing in penny stocks is too riskier than any other investments in Stock Market.
The following are the major risk factors to invest in penny stocks.
Huge Volatility:
Due to the sudden volatility, there is a huge risk of losing your entire investment or a major part of it in one go.
It is possible that the price of the penny stock may go down/up by 50-90% in a single trading session.
Poor Financials:
Most of the penny stock companies are struggling financially or have consistent losses. Some may have a history of inadequate cash flow, or high debt.
These factors may lead to the risk of bankruptcy at the end. So, we must go through these factors before investing in penny stocks.
Limited Track Record:
Most of the penny stock companies are new or not well known in the market. This limited track record makes it difficult to predict the performance of the company in different market conditions.
Sudden Price Drops:
Penny stocks can experience sudden price drops without logic. This can happen due to various factors like speculations, negative news, poor earnings reports, or market trend.
Penny stock may move 50-90% upward/ downward in a single trading session.
Fake Announcements:
Big traders/ institutional investors may speculate the price of a penny stock by spreading false information about the company.
Once the price is high, they sell their shares, leaving other investors with losses. This process named “pump and dump” in the market.
Difficulty in Finding Good Stock:
Finding up-to-date information about penny stocks can be challenging even though there are many screening websites to find.
Limited coverage and unreliable sources can make it hard to take investment decisions on penny stocks.
Penny stocks may seem attractive due to their low prices and potential for substantial gains, but do not forget that the low price may become completely “0” in a single day.
Multibagger Penny Stocks for 2024
Stock markets provide you an opportunity to make huge capital appreciation by allowing you to make little investment on penny stocks. Although it involves a high risk.
Do you want to make huge money by investing in single digit low price penny shares? Yes of course, is it not? So, don’t skip your read as we approach you with practical examples of penny stocks and suggestions to opt for the right ones.
From 10000 to 26 Lakhs in Just 3 Months
For instance,
You can get to know about SEL Manufacturing (Textile Company), a small capital company, which had their penny stocks @ INR 0.35 began to rally and reached INR 91.8 in just 3 months, thus rising by 26000 percent.
Imagine if you had invested about INR 10,000 in SEL manufacturing then you will have made INR 26 lakhs in just three months.
We are sure that such information will make you join the list of investors/traders to make huge profits by making small investments in penny stocks.
Read important observations, never mind the high risk factor, just follow the guidance.
Penny Stock with Share Price Less than 1 Rupee:
A detailed information on the high yield performers of penny stock companies such as SEL Manufacturing, and Alps Motor Finance.
Multibagger Penny Stocks move on for a stock split:
Multibagger Penny Stock whose price is below INR 20 goes for stock split after the script gains 154 % YTD: Square Four Projects India Ltd., a microcap firm.
Good Signal to Buy Companies Penny Shares having Debt to equity ratio of zero:
Companies Must be sought for in penny stocks too. So, here are the practical examples that can be more comforting for an investment.
They are, namely, Coral India Finance & Housing Ltd, Oswal Agro Mills Ltd, and Jullundur Motor Agency Delhi Ltd.