Trading penny stocks in india
As per me, penny stock is like rich-poor stock. It can make you rich or it can make you poor. It is very difficult to identify the best penny stocks. You can follow the method given below to find out best penny stock for investment. Based on criteria mentioned above and other factors, I have tried to find out best penny stocks in India for and here is the list of the same. Kumar Wire Cloth has shown high sales value, however, profit margins are very low.
Fundamental of this company is not so good, however, it turns out be best penny stock for Virat Crane — Virat Crane is in the business of dairy products. White Diamond — White Diamond deals in apparel accessories. Fundamental of this stock is very weak, however, it is one of the best penny stock of 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 pros and cons of these stock. Investing in penny stock is like gambling. You are investing money in the company with no fundamental in the hope of earning a big return. Penny stock is high risk, high reward game if you are conservative investor it is a big no for a penny stock. If you have a lot of surplus money you can go ahead and invest in the penny stocks.
The risk is yours, you may lose entire money. Of course there is no fixed price range and you can also expand the range up to price of Rs. Trading in stock market is itself risky but the amount of risk in case of penny stocks is more. Penny Stocks are considered highly risky due to factors such as: Investing in penny stocks can either give you profit or it can result into a substantial amount of loss.
Penny stocks with strong business models and good fundamentals have the potential to become multi baggers in the long run.
Usually small investors who adapt this platform believe that a stock trading at Rs 3 has higher chance of becoming Rs 30 — giving over 10 times return, in comparison to the stocks quoted at Rs which they find it harder to become Rs 3, Here are the few guidelines that can help you to invest in penny stocks.
Here is a list of few stocks. This is for your reference only and not a recommendation to invest in these stocks. You have to do your own research to find out the best value stocks. Penny stocks could be a wealth creator or wealth destroyer. There are many people who have created huge wealth while the wealth of many investors is destroyed by investing in penny stocks. The common factor among the microcap and smallcap stocks is earnings growth that have turned out to be multibaggers.
Look for stocks where there is potential for growth.