How to Invest In Penny Stocks

       Penny stocks always seem to catch the attention of investors that hope to turn a quick profit. But, penny stocks are one of the highest volatile investments you can take. It is also the most riskiest. Stocks that are that cheap are usually that cheap for a reason, investing in them is incredibly risky. The stock may double in hurry but that can turn into a huge loss just as quick. The risk and the volatility is tremendous and to some investors it attracts them to think they can turn a quick profit. Well as quick as a profit they may turn, it can also turn into a horrible investment just as quick. That's why investing in penny stocks is so risky. The research into penny stock investing seems to be some negative; almost all of the indicators of the companies are so weak there almost seems to be no reason to invest in penny stocks at all. But, that's just not true. Investing in penny stocks is hard, really hard and we'll help you.
      Now Alleyway Investing is not the biggest fan of penny stock investing. But we do have tips for those of you wondering on how to do it. The SEC has many rules and regulations on how to trade penny stocks, so they watch it very closely. One rule we uses to watch penny stocks to see the high trading volume. If the trading volume stays consistently high then the penny stock might break out. If it is making a profit and is consistently growing, then you might want to think about investing in it, plus look at its earnings and when they come out. Have an entering and exit strategy to it and be sure you plan your strategy when to go into it and when to sell it wisely so you don't get on the losing end of it.
      Don't believe the scams on the internet on how they can turn your investment into a 1,000% gain in 1 month, those just don't really come true. Unless you have such influence to change the stock by using the "pump" and "dump" method. The '"pump" and "dump" method is a used when an investor buys a such a large amount of shares that it artificially inflates and manipulates the price, then investors look at the stock and see how well it is doing and so they invest in it, but then the investor will "dump" its large shares and cause the stock to go down. Although the SEC is regulating the trade of penny stocks but still watch out for this method since it is hard to detect. The volume that you see from a penny stock might be fake. Also a tip that you should follow, how did you find out about the stock? If it was from a scam or convincing article then you should probably think twice about that stock, but if its a brand name that you have heard of then maybe do your research on it to see if its enough to invest in it. But always remember the biggest key on investing in penny stocks; it is a penny stock for a reason.