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Is it really possible to make money with penny stocks? Yes, absolutely. Is it risky? Yes, absolutely. Should you try it? Maybe, not necessarily, possibly, it depends.
Are you a rank beginner, needing to have all terms defined and possibilities explained? If so, you need someone to hold your hand and walk you through the process. Unless you just like throwing money out the window to see if any will blow back in, you need help. No shame there, but who you should trust to advise you- that can be tricky.
So, okay, a good, respected, trustworthy advisor is the first thing you need. Well, actually, thats the second thing you need. The first necessity is disposable money to invest. Do not, under any circumstances, borrow money to invest. And do not buy penny stocks with the money you have set aside for the kids college education, or new tires for the car, or -horrors!- the house payment.
While you can make enough money with penny stocks to call yourself filthy rich, you can also lose enough to become dirt poor.
Lets assume you have a few hundred dollars to invest and a yen to try your luck as a trader. Before you do anything else, educate yourself. Learn the lingo, monitor a newsletter or two, lurk around the forums, and read, read, read. Dont trust the stock tips that arrive uninvited in your in-box or the tips that come from your cousins brother-in-laws neighbor who knows someone on the inside.
As the saying goes, when the pupil is ready, the teacher arrives. When youve learned enough to know you need help, start looking for that advisor, the one who has a good reputation and knows how to make money with penny stocks. Youll have a much better chance to make it to that filthy rich category someday.