Understanding Shorting Penny Stocks

Having savings is important not just for emergencies but also in terms of looking ahead to big expenses such as your child’s college educaton. But would it be great if you  make your savings work for you than just let it sit in your savings account? Over time, inflation will erode the value of your savings and you will endure the loss each day.

The most common areas to invest are in property, bonds and stocks. However, with property you will need a big amount to begin with while the bonds and stocks requires less money to invest initially. With bond, you are lending the company money in exchange of the full amount paid back along with interest when the bond matures. Stocks give you part onwership in the companies you buy into. You may or may not receive dividends, depending if  the company does well or goes bust.

One common type of stocks is the penny stocks, also known as cents stocks in some countries. These are common shares of small public companies that trade at less than $1.00. Though penny stocks are considered to be high risk, these stocks have the tendency to rise faster than financially sound companies while also giving the investor a higher percentage in profit.

It seems that recently, a growing number of investors have begun shorting penny stocks as a way to increase their returns. Some experts claim that it cannot be done successfully. However, most of these experts taken back their claims of impossibility. When I read Timothy Sykes reviews, I have fully understood how shorting penny stocks work. He shares information purely based on his experience and knowledge gained in the process. I also learned from his interview a lot of things about investing and trading.

I didn’t know that those little savings of mine can be that big. Now, it’s time for me to withdraw those little savings and invest.

Speak Your Mind