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Cheap Stocks

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I get it. Our economy is awful, we can barely hold a $1,000 emergency fund and investors have transferred from value investing to looking for something that will have our “bang for our buck” kind of deal. However, just because a stock is “cheap” doesn’t mean that is it necessarily a good buy. It may be best to hold on to your savings for the more expensive index funds stead of buying the penny stock.

Stop trying to get rich quick from the stock market, It won’t work in your favor.

There are many stocks you can find under $5 dollars, but keep in mind that the lower the dollar, the higher the volatility. Investors who ignore the company’s financials and selling product, only care about how much money they can make. Stop trying to get rich quick from the stock market, It won’t work in your favor.

Besides the fact you feel special holding 1,000 shares of a stock that can cost a little as $0.0032, what value does the company hold long-term? Wealthy investors don’t care about the price of the stock, they care about consistency. What is the company competitive advantage? What are their competitors and the amount of money they spend on research and development?

May I encourage you to look deeper into every company you are investing in. Your due diligence is the only way that makes each investment the right investment. Every investor is responsible for his or her gains and loses, so choose wisely.

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