When the market is rising and is in bullish mode, you will find many brokers or sub-brokers with loads of advice, they use different modes like electronic media, print media, telephone calls, messages, social group sites etc. A common man who does not have any knowledge of stock market gets tapped into this propaganda and invests money. The main fallacy about penny stocks is that the big stocks today were also Penny Stock Alerts once, but that necessarily does not mean that all these stocks will become big one day. There are many things involved in making these stocks big, if company has a good intention of using money properly with efficient management and with strong fundamentals, the stock prices will go up. There are companies which float their stock in the market and vanish; this is common tick which is adopted by the people who want to make quick money.

Mostly it has been seen that people easily get lured to these stocks due to its low price, suppose you have $ 1000 to invest, instead of investing in blue chip companies, often people get attracted to more number of shares I this amount. if the stock price is $ 1, in thousand dollars, one can buy 1000 shares, the same is not possible with blue chip companies, but in the latter case even if the number of shares is less, your investment is safe. It is very difficult to choose the best stock picks due to lack of information, as the information available is very limited. You must have a clear vision that as to why you are investing in these stocks.

Your homework and proper analysis will save you from losing your entire investment and you can earn a substantial profit also. Before investing in micro caps, you must analyze the fundamentals of the company; you must have complete information about the management and the product range they are dealing with. No good company will keep the prices of their stocks so low, as they mean business, but there is a good side also, there are abundant opportunities in the market, provided you have vision and ability to recognize them. You must go into the reasons why the stock prices are so low, may the company has just launched and the management is really serious about the progress of the company. Even a single big order can change the fortunes of the company and also that of its stock to buy.

ENTB