Wealth-Coaching

Penny stocks often have an allure to them - especially for beginners. They are low cost (usually under $5 a share) and seem to elicit those who want to take chances to make it big. It can be like gambling.

Why are penny stocks so risky? Anytime there is a promise of easy money, the pickings are ripe for scams. Also, the margins are often smaller, but the cost of trading isn’t less. So think about the cost of trading penny stocks when stock marketing investing.

It’s challenging to find good information about penny stocks. They are not required by law to give the same disclosures as regular stocks. There is more chance for rumor and hype and tips from friends. Sometimes business newspapers will give good information.

I find a lot of people don’t believe me when I caution them against jumping into trading penny stocks. They must lose some money for a while before they are ready to listen. However, my advice is invest that money into education where you can start slowly with the advise of a mentor. Someone who is more advanced who can start you with something less risky.

I think the biggest challenge most people face is that of their own pride. We think we don’t need assistance that we can figure it out ourselves. And we can, eventually. In the meantime we’ve often sunk a lot of time, money, and expensive mistakes. A qualified coach can help you avoid that - but only if you listen to them.