What are the rules for investing in Penny Shares?

3:33 AM RAWAT 0 Comments

Penny shares are known to be sharing in small companies who all are admitted to the public markets. This share is said to be best for the people who all want to invest in the high-risk market, and this includes sophisticated investors.
Things you need to know about Penny Shares
It is very important that you must understand the product in which you are going to promote with the help of your money. You need to make sure that you buy and sell the right kind of share. So when you are going for this make sure that you go for the authorized website for the registration. When are you going to select any share or asked to opt for this share, make sure to ask why is it so? So you can know why you are being asked to buy this and what kind of advantage you get from it.
Rules to invest in Penny stocks
It is now seen that there are many investors who all are readied to invest in this stocks despite knowing the fact that there is danger in it. The main reason behind this is during the last few months it has been seen that many have got some outstanding returns from it. But before going for the investment keep some of the rules in your mind which are listed below.
·         Try to avoid big investment
When you are going for the investment in it, go for a small amount of investment rather than a big amount. You must see that the penny stocks should not go over more than 10 per cent of the total equity portfolio.
·         Remember where you invest your money
It is usually seen that most of the time people usually invest then forget where they have invested and search for it for the returns. So it is very important that you should invest in it for a short-term, not for long term. When you see that stocks are rising to go for the part profits rather than waiting.
·         Go for stocks with high volumes
Always try to go for the stocks of the company who have got high trading volumes. So that when you want to exit from it you can sell off the stock very easily.
·         Go for 2-3 stocks at a time
It is very important that you need to invest in a hand full of stocks so that you can have a good return from them.  
·         Don’t go for average purchases
It is seen that many people go for the average purchases but little they did know that they are going towards a big loss by themselves. You should always sell the shares when the price starts to rise rather than going for more shares when it goes down.
·         Don’t change your strategy
The most important thing is to follow a safe and regular strategy than changing the strategy with time. It is seen that man times people who all change the strategy with the time face extreme loss in the deal.
These are the rules that one should go over before going for the investment. These rules will help you to make sure that you get more profit than the loss in the investment.  Some prefeesion free consultation providers like Mis sold Sipps, and  Mis sold Sipp Claims can help you to claim your mis sold pension