Can Penny Stocks Make You Rich?

Have you wanted to become an investor but found yourself lacking the funds to invest in Nasdaq or the NYSE? Indeed, the stock market can be discouraging when you see stock prices that equal your monthly or yearly wages. However, investing is your best shot at creating wealth if you’re not already a high-net-worth individual or high-wage earner.

The good news is that there are more affordable trading options for people of lesser means interested in investing. Continue reading to learn about penny stocks and learn if they can help you achieve the American Dream.

What are penny stocks?


Did you know that the average share price for an S&P 500 company is just under $70? Indeed, that’s a fraction of what you paid for your custom cabinets the last time you renovated. However, one share of an S&P 500 company won’t do you much good in the immediate or long-term future.

The average stock market return is 10% per year, meaning you’d need a lot of $70 shares for it to pay significant dividends. However, investing in penny stocks is a new trend among younger investors. Truthfully, there’s nothing new about penny stocks except the excitement surrounding them.

Penny stocks are company shares that are valued at less than $1. Their affordable price makes it affordable for people of lesser means to purchase enough shares to make significant profits quickly.

Use stock screening tools to find investment opportunities.

Finding the right penny stocks can be tricky. However, online stock screening tools allow you to apply filters that rank companies by share price and other factors. Indeed, you can find a myriad of affordable stocks, whether looking on the Toronto Stock Exchange (TSX) or NYSE. For example, simply Googling NYSE or TSX penny stocks 2021 will yield a list of low market cap stocks, some even as low as a nickel.

It’s also a good idea to speak to a financial advisor about your options before investing. They know how to predict where a stock should finish the current day or even the current year’s second quarter.

Another good reason to speak to an advisor is that they can show you how to make a lot of money with a long-term investment strategy. Penny stocks are good for a quick flip. However, the challenges they present often make them bad for a long-term investment plan.

You have to pay close attention to penny stocks.


As mentioned before, penny stocks are volatile. That means you have to keep your eyes on the market because the current share price isn’t likely to withstand the test of time. However, that’s what makes investing in penny stocks a great way to make a quick profit investing.

It’s important to do your due diligence to stay ahead of top trends in the market. Successful traders are watchful and always on the lookout for the right time to buy and sell. You can also follow the markets and learn how to trade online with platforms like Wealth Rocket.

Penny stocks often have large rises and falls.

The volatility of penny stocks lures many beginners and experienced investors looking to make a quick buck. Indeed, penny stocks can change as quickly as the latest trends in kitchen remodeling or spring fashion. These stocks rise and fall like seesaws, but the gains (and losses) tend to be significant. So, if you’re looking to potentially make large profits quickly and have a high appetite for risk, trading penny stocks might be ideal for you.

Can penny stocks make you rich?


The big question posed by this article is can you get rich trading penny stocks? Indeed, any investment has the opportunity to produce significant gains, penny stocks included. However, it’s unlikely that you’ll become a millionaire trading stocks priced under a dollar per share.

It’s important to remember that these stocks are volatile, high risk and reward, and often offer low liquidity. It’s also important to stay up to date on the latest trends as penny stocks are volatile by nature. However, learning how to invest in the NYSE or Nasdaq can help you realize your dream of being a homeowner or retiring young.

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