Investing in penny stocks has become one of the most popular choices for retail and institutional traders in the past few years. All over the internet, we see ads touting the next best cheap stocks or the potential of triple-digit percentage gains. And while this seems too good to be true, that’s because it is; for the most part.
And while some investors benefit greatly from investing in penny stocks, others swear off of them because of the large losses that they may have accrued. With every story about a large winner, there are likely to be hundreds of stories of even larger losses. Now, I’m not saying that penny stocks aren’t worth it by any means. Rather, investors simply need to find all of the information that they can before sending in a buy order.
This post originally appeared on PennyStocks.com.