Penny stocks are a great investment for those looking to profit in the stock market. While the risks are certainly higher than investing in blue chip stocks, the potential rewards are much greater. For example, a company that is trading at $0.50 per share is much more likely to rise in the double digit percentage points than a stock trading at $500 per share.
Of course, you need to be careful when picking penny stocks. There are a lot of low quality stocks out there and it’s easy to get burned if you’re not careful. But if you do your research and pick solid companies with good prospects, investing in penny stocks can be a great way to make some serious money. Now, with so much volatility in the stock market as of late, it is more important than ever to have a well diversified portfolio and to do your research. Adding penny stocks to your portfolio can help you do just that.