Questions about Penny Shares
What are penny shares?
Penny shares, sometimes known as penny stocks, are a particular type of share that has a low More...
Types of penny shares
Penny shares split into several sub categories that describe the industry that they belong to, the age More...
P/E, PEG Ratio, EPS?
Not sure about some of the terminology? What is a Dividend Yield or PEG Ratio? More...
Which Markets?
Within the United Kingdom there are three main markets which penny shares may be traded on. More...
What is the FTSE?
FTSE is the perhaps the most recognisable acronym is British culture. Originally named after a combination of the Financial Times More...
Research, Research, Research
One of the most important elements to consider when you are researching penny shares is the More...
What does it mean in simple terms?
Visit our Glossary for simple explanations More...
Penny Shares - Advantages & Disadvantages
Here is some information which shows the positive side of Penny Shares as well as some of the risks that are involved. The advantages of penny shares can be huge if invested wisely. More...
Everything you need to know about Penny shares
Welcome to pennyshares.co.uk were you can find the latest information about investing in Penny Shares.
Trading in penny shares is one of the most exciting ways of investing money. If you are able to spot a good investment opportunity you can experience the pleasure of watching your shares rise in value from a few pence to a few pounds.
When investing in shares the idea is to buy a share at a low price and then sell it later at a higher price, thus making a profit.
Good luck with your investments.
Basic Trading Tips. Penny shares, Penny Stocks.
Penny Shares or Penny Stocks are stocks or shares in small cap companies. They have a great appeal for speculators because of their low value and the possibility of racking up a huge gain.
Most penny shares will be companies who have been operating for a short time or have only recently become public.
When you consider that the overwhelming majority of companies start out as penny shares before growth has turned them into successful concerns you can see the attraction.
The potential is enormous. But there are also huge risks. You must be prepared to lose money. Read More
While it is an exciting way of investing money it is fraught with danger. In general, penny shares have a thin market. A stock priced at 10p may rise 50% as a result of some good news, whereas a larger blue chip concern will not.
On the other hand, the penny share can fall far more suddenly and steeply than the larger stocks and its price at any given time may bear no relation to the stock's underlying value.
Basically, investing in penny shares (penny stocks) is all about sifting through the masses of shares and pin-pointing a company that, for you, shows potential.
Ideally a penny share that is worth investing in will have a net asset value per share that is higher than the share price itself, but sometimes it is worth while dipping in and out of shares when the time is right. For example:
- Recovery Shares: Companies which have seen their share price tumble significantly, but show potential for a return to the good old days.
- Cyclical Shares: These rise and fall in value according to the economic climate or maybe a business cycle. Investors will ideally invest in stocks at the bottom of the cycle before the next upturn.
- Defensive Shares: The opposite of cyclical shares, these are stocks that do well in times of economic depression and can be found in industries such as food and utilities, things that consumers tend not to cut back on in difficult times.
- Internet Companies: An exceptionally volatile area. Shares rise and fall rapidly in short periods of time because these companies offer little or no tangible assets to provide stability.
- Biotechnology Companies: Often fewer that 10% of these companies' profits reach development stage, but just one could send the share price rocketing. In assessing the potential of any company, look out in particular for strong business plans and results; trading volume; a trend of improvement; and high visibility – a company which publishes regular financial reports.
- What are Penny Shares?
- Types of Penny Shares.
- Which markets are penny shares traded on?
- Researching penny shares.
- Penny Shares - Good Investment or Bad...
- What is Spread Betting?
- Penny Shares - History & Origins
- Advantages & Disadvantages of Penny Shares
Trade wisely: Penny Shares Bull Market
I would like to ensure that you understand what a bull market warrants for big priced shares. I also hope to elucidate why penny shares are always a safer yet lucrative option during a bull market.
If you are new to share market, the lingo might seem too fuzzy at times! Bull market is used to refer to a set of securities whose prices go up, all of a sudden.
The driving forces of the market could be anything ranging from psychological factors to buying trends.
Anyway, the point is during a bull market contrary to what most people think the ‘buy and hold’ policy is not the best alternative.
Read More about how a Bull Market affects Penny Shares