The question, “Can I make money with penny stocks,” isn’t new by any stretch of the imagination. The small cap and micro cap equities are defined as stocks trading below $5 a share. Though it does make sense that penny stocks would be defined as stocks trading for pennies, certain oversight of the space designated a price of $5 or less. In any event, penny stocks are incredibly risky but for those who’ve experienced the reward, you know that the risk is sometimes worth it.
With a new month upon us, penny stocks will be in focus. Many new college students will be looking for extra ways to make money. Because you can buy many shares of penny stocks, the niche is appealing especially for students.
However, it’s important to note that penny stocks and day trading small cap stock can require your full attention. This being said, make sure you know the basics of investing first. Then you’ll want to understand the penny stock basics as well. Keep in mind that learning how to invest isn’t an overnight thing. It can be a lifelong learning event for most successful traders.