Before investing in penny stocks, you must ask yourself some questions. Use these questions to make a good decision about investing in penny stocks. 

1-  If you are new to investing, what you will do in the beginning? How do you get start?

 

• Get information?
• Contact with old investors?
• Search for a smart broker?
• Go ahead and invest directly?

 

2-  Which you prefer? (You must choose the best way to invest your money)

 

• Invest your money in big stocks/regular stocks?
• Invest your money in small stocks like penny stocks?
• Invest your money in your private projects?
• Save your money in the bank?

 

3-  Can you increase your money without investing it in stocks?

 

4-  If you decide to start investing in penny stocks, why you accept the risk of penny stocks?

 

5-  Did you get enough information in order to start trading on penny stocks?

 

• The real time information.
• The actual information.
• The accurate information.

Note:

Some information sources that may help you to find what you want about penny stock investing:

1. The prospectus.
2. Trade confirmations.
3. Manuals.
4. Periodic reports filed with the U.S. Securities and Exchange Commission.
5. The best broker.
6. Books of penny stock investing.
7. Old investors.

 

6-  If you have advanced level in penny stock investing, do you still need the information?

 

7-  Do you understand the nature of penny stocks? In other words, do you know what are penny stocks meaning? And how many definitions do you know about penny stocks?

 

• One definition?
• Two definitions?
• Many definitions?
• The most popular definition?

 

8-  Where can you find hot penny stocks?

 

9-  Is there a different between hot gold penny stocks and hot penny stocks?

 

10- Where penny stocks trade? Can you find places to buy penny stocks?

 

• In a stock exchange market?
• In OTC market?
• In elsewhere? Unspecified places?

 

11- Do you want to invest your money in pink sheets? Did you get any information about them before investing in?

 

• The meaning of pink sheets.
• The places to buy.
• The risk of pink sheets.
• Why you should be careful when you invest in.
• The price in pink sheets.

 

12- Do you know the different types of penny stock markets? And which type is right for you?

 

• Pink sheets market.
• OTCBB (The Counter Bulletin Board stocks).
• Other types.

 

13- Which type of investors are you?

 

• A day trader?
• A short term investor?
• A long term investor?

 

14- Why investors accept the high level of risk of penny stocks? In other words, why all investor come back to penny stock investing?

 

• It’s a cheap stock?
• It’s not risky for them?
• They can make a small fortune from investing in?
• Less investing, making a profit?

 

15- Do you have the proper knowledge about the good and the bad of penny stock investing? In other words, did you know the advantages and disadvantages of penny stock investing?

Note:

• There are good and bad aspects in penny stocks investing.
• You must know the both in order to get benefits from the good aspects and avoiding the bad aspects.

 

16- Do you get some information about the warnings of penny stocks?

• Companies’ sales techniques.
• Manipulation techniques.
• Blind investment & blank check.
• Trade confirmations, the transactions of penny stocks.
• Illegal transactions.
• Cold calls.

 

17- After you determine these warnings, do you know how to find some guidelines in order to avoid them?

 

18- Will you put all your investment in one sector of the stock?

Note:

• Don’t put all your money in one stock.
• Variety is required here to avoid risk or to limit your risk.

Find some useful tips, sharing your ideas, advices, and experience.

Continue with #2 and #3