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Wednesday, December 14, 2005

Penny Stocks Defined

Penny stock is defined as stock trading below $5 per share or in other definition trading below $1 per share. Although trading in penny stocks incurs great risk, yet as many stock trading veterans all know - the higher the risk, the higher the return.

Nevertheless what these veterans didn't tell you is that the risk should be controllable. We don't encourage you to jump right into any stock that trades below $5 per share. Yes you may hit the jackpot such as Netease(NTES) which trades below a dollar a share in January 2002 and is now trading at $56 per share, however something like this doesn't come oftena and you end up choosing something like Capine(CPNL.PK) or Curative Health Service (CURE). Picking penny stock without studying the fundamental and technical side of the stock is suicidal and is just like gambling, not investing.

Penny Stock Pick is aiming to minimize the risk of penny stock investing by going thru the available penny stocks and analyze it before making any recommendation. So good luck.

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