The business environment has grown to be very volatile.
Many countries including the USA are facing grave recession, so much so that people have fled their homes fearing creditors. This has happened due to the breakdown of the home loan market in the USA. The recession which started last year has virtually wiped out many corporations and had dealt a body blow to the real estate sector in the USA. It is only now that things have stabilized to a certain extent so that the corporate world in the USA could give the good news that they would be increasing salaries by the second half of 2010. In such a scenario, you would like to depend upon something that appreciates in value not withstanding the recession. There is only one investment opportunity that can appreciate in times of a recession. A penny stock belonging to a company that is fundamentally strong as well as that which is performing very well in its balance sheets is very likely to appreciate in say one to three years although it may be quoting at nominal rates today.
Many of my friends ask me which, are the best penny stocks to trade in. To this I answer that I do not know. But the actual fact is that I hold this secret very near to my heart and would like to divulge it only to you. So whenever, someone new asks me the above question, I give them a pause and move ahead. But as I said, I would like to share the secret with you. Do you know that penny stocks are very awesome for trading? Note that, I have said, trading and not investing. At this juncture, a distinction needs to be drawn between trading and investing. If someone were to invest a sum of money for a period of ten years then he will have said to make an investment. On the other hand if someone else were to put the same amount in a financial instrument like an equity share for say one year, then one is said to be trading.
But when I say trading, I do not imply that you should lock yourself up in your bedroom and sit in front of the computer for every minute that the stock market is in operation. Rather, I am referring to that trading which can be done by people even if they are gainfully employed in their full time jobs and are earning a decent income from it. This is because for these people it is not possible to sit in front of the computer for the period of time that they are involved in their full time professions. If you read about penny stock trading you will find that it is a very engrossing game wherein you identify a profitable stock and put your money in it, and then you play the watching game until its price reaches a predefined level.