Penny stocks are commonly known as shares that trade for a dollar or less. Mostly, they trade in decimals. They are known to be risky investments but can be very rewarding. While some penny stocks have become worthless, others have been known to shoot up to twenty dollars per share. Since most investors buy penny stocks in their thousands, twenty dollars per share could amount to thousands of dollars. Investors have the potential of doubling or even tripling their stocks in a matter of days.Risks InvolvedJust like any other business, trading in stocks is a risky operation. Penny stocks are said to be more unstable or unpredictable than most other shares that are traded in the major markets, like the New York Stock Exchange or the American Exchange. This is mainly because they are much cheaper and have no liquidity. This means they have less shareholders.Since penny stocks are known to be risky, there are alternative penny stocks that are not as risky as most. Although it is hard to measure how risky an investment can be, some penny stocks have a history of doubling and enriching the investors in a matter of days or weeks. For instance, gas and oil companies that specialize in acquiring and developing other companies have made their mark in the stock exchange markets by increasing their shareholder value.Doubling StocksAnother alternative penny stocks trading is the doubling stock strategy. This works by simply buying a newsletter for only $ 47 and waiting for a stock market robot to send one stock choice every week. This stock has higher chances of doubling in less than half an hour after trading starts in the market.How does this strategy work? The Robot simply analyses a stocks previous movements and makes a technical prediction of how the stock will move future trading. Since the robot can watch hundreds of stocks at the same time, it saves the investor the time to go through the stock charts of different companies individually. The robot will notice any slight change in trade patterns and will be on the look out for a sudden rise in price. A stock broker can go through charts every 9 seconds while this robot can analyze over 6 charts in every second.Risk/Reward SystemMost penny stocks trade for between 10 cents to 1 dollar. However, those that trade for between 10 dollars and 20 dollars are alternative penny stocks. Most investors know that when you take big chances you might end up with bigger profits. These are the investors who trade in the penny stocks market by investing heavily. For instance, buying 100 stocks at a price of 20 dollars each will earn more than buying 1000 stocks for 0.0001 each.Many stock brokers or online investors are always on the look out for stocks that will yield a higher reward system. This is more likely applicable to those investors who invested higher sums of money. The higher the risk taken, the higher the reward will be.
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