Best Penny Stocks For 2019 in India.
Penny stocks are the stocks that trade at a very low price.
They generally have very low market capitalization.
Also, they are mostly liquid and are usually listed on a smaller exchange.
However, in the Indian Market penny stocks plays below Rs 10.
These stocks are very speculative in nature and are highly risky.
The reason is the lack of liquidity, a smaller number of shareholders, large bid-ask spreads and limited disclosure of information.
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Best Penny Stocks For 2019 in India
Let’s have a look at some of the Multibagger penny stocks which have created wealth for investors:
If an investor is lucky and is able to find the proper stock, these stocks can become multi-baggers.
Further, the investor can make enormous wealth from these stocks.
In fact, some of the penny stocks like Gayatri Sugars, NetVista Ventures Ltd, KM Sugar Mills Ltd, Sybly Industries Ltd, etc have given more than 300 stocks.
Up to 33 penny stocks have given a return ranging from 100% to 300%.
So, the investors desiring to invest in such stocks must do so with the following rules in mind.
The rules below ensure that in the worst case also the investor will not be badly affected:
- Firstly, invest only petty amounts.
- Secondly, diversify widely. Along with this, have a basket of penny stocks.
- Further, monitor the performance regularly
Ensure that you only invest a small amount of the portfolio in such stocks, not exceeding 10% of the portfolio.
However, it is always good to treat penny stocks as a basket and spread the investment and risk across four or five stocks.
Best Penny Stocks For 2019 in India
Penny stocks are not among the stocks you can buy and forget.
By their very nature, you need to watch them carefully.
At the slightest sign of trouble with regard to the fundamentals, the investor should be ready to sell his stocks.
There are many different ways to get started in the trading market these days.
You can invest in a broker who can give you advice on where to spend your money on long-term investments and wealth-building strategies.
You can play around with paper-trading for a while online until you feel comfortable using real money on your securities.
Best Penny Stocks For 2019 in India
Some people even find that the best route for them is to invest only small amounts of money at a time with penny stocks.
While the idea of penny stocks is appealing, it’s important to remember that these aren’t the right trading solutions for everyone.
Although there’s a lot of benefits involved in spending your money on low-price securities.
To begin with, it’s vital that you think carefully about your options before you jump in head-first with this kind of trading.
Penny stocks are stocks that are available for a very low price point.
That doesn’t necessarily mean that they only cost a penny to buy but you might be able to grab a share of a company or security for about $5 or less.
These are great for helping you to turn a small investment of cash into a large sum of money very quickly.
However, just like a lot of other trading strategies, it’s easy to wipe out all the money you make with penny stocks too.
For many people, the potential for earning big rewards won’t necessarily outweigh the risks.
For instance, some people worry about the nature of penny stocks depending on where they decide to trade with them.
There are many low-priced stocks available to buy from unregulated markets, which can put you in a dangerous position if you decide to stray off the beaten path.
Understanding The Basics
The good news for most investors is that you will be able to make a decent amount of money relatively safely using penny stocks.
If you have the right strategy in place, Just like any other kind of trading,
Therefore, you need a plan in place to ensure that you avoid buying the wrong securities at the wrong prices or even for the wrong reasons.
You can avoid making investment mistakes like that by learning as much as you can about trading before you get started.
The keys to successful trading in the penny stock market are making sure that you keep everything above board.
Rather than taking chances on the dark market so you can try to get even cheaper prices, stick with markets that are regulated and approved.
If you focus exclusively on the stocks that you can buy from authentic exchanges,
Then you’re less likely to lose money unnecessarily.
At the same time, it always helps to practice your trading strategy before you begin spending money even if you’re only using a small amount of cash on a penny stock.
If your broker offers access to a paper trading account,
Use that to develop your strategy over time and make sure you feel comfortable and confident with the trading decisions you make.
PENNY STOCK INVESTMENT IS GOOD OR BAD?
The more you practice, the easier it will be to pinpoint excellent money-making opportunities.
It is very difficult to identify the best penny stocks.
You can follow the method given below to find out the best penny stock for investment.
The company should be in business for several years.
The product and services of these stocks must be real and visible.
Promoter holding in this stock should be reasonable 30-40% minimum.
The stock should be less volatile.
Also, the Company should have potential in terms of business and earning profits.
The Company should be competent in the respective sector.
As discussed earlier penny stocks are like rich-poor stock it can make you rich or can make you poor. It is good or bad for investment that you can decide based on the pros and cons of these stock.
Pros
If the identification of penny stock is done right it can give you a huge return from 100% to 3000%.
These stocks are cheap so you can buy these stocks in bulk.
Some Stocks stuck up as penny stock due to temporary period and it can bounce back and give skyrocketing returns.
Cons
Very high risk as we don’t know that stock will grow or fall.
Penny stock may get de-listed and you will not able to sell it.
The trading volume of the penny stock is very low, so it is difficult to exit from these stocks.