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When people get started investing in the stock market, they do not usually think about penny stocks. Instead, they might turn to recognizable corporate names. But, these stocks might be priced to high for the rookie investor.

Instead of ignoring penny stocks, new investors should take a good look at the Tim Sykes Millionaire Challenge. The young investor made his fortune by starting off with the most inexpensive stocks that he could afford. Once he made money on penny stocks, he was able to look at the big corporations that deliver big dividends.

Investing In Stocks Can Be Risky

These stocks may not be well known in the world of investing, but they are often the first ones that young tech companies use to build capital. If you do decide to invest in risky penny stocks for tech upstarts, there are a few things to consider:

  • Penny stocks can be traded after hours which makes them challenging to follow
  • Accurate quotes are difficult to find because they are traded so infrequently, even after hours
  • Companies offer little information to the public since they are so young and they often do not have the means to provide reports

Because of these challenges, even the most competent investors can be hesitant to get involved with these stocks.

But, if you want to reap the financial benefits of helping young tech companies build their capital, then buying penny stocks is one way to do it. Since these stocks are only a penny, the risk may not seem overwhelming, especially if you start small.

Learn About Investing In Tech Startups

Fortunately, there are other people who try to win big with penny stocks in the tech industry. There are also popular investment websites that follow these young tech companies as they try to turn their names into household brands. These websites often teach young investors all of the terminology and skills that they need for success in the stock market.

Several well-known brands have actually spent time in the penny stock category and some have actually succeeded. Several tech companies have started in the bargain basement and worked their way up. So have many other well-known brands.

Even Ford Motor Company was a penny stock at one point in time.

If you do decide to follow penny stocks and work on investing, there are several resources available for help. Many websites that specialize in following stocks have special pages dedicated to young tech companies. In many cases, these young companies are providing resources to the brand names that we know and love.

How New Tech Companies Get Started

These young tech companies might be involved in exciting adventure. For example, some of the startup tech companies might…

  • provide tech-related services to large companies like Apple or Uber
  • improve products like drones or email apps
  • build products that help the traditional medical industry or the growing alternative medicine industry

If you don’t mind a little risk, investing in young tech companies and their penny stocks can be a helpful tool to grow your own wealth and work your way toward earning your first $1 million.

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