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Importance of Penny Stocks in a Portfolio

Many people have diversified their portfolios in ways that ordinary people can't even imagine. But the one thing that many people don't do is combine the right percentage of penny stocks into their portfolios. Penny stocks should compile no more than 2.5% or your portfolio.

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Importance of Penny Stocks in a Portfolio

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  1. Importance of Penny Stocks in a Portfolio Many people have diversified their portfolios in ways that ordinary people can't even imagine. But the one thing that many people don't do is combine the right percentage of penny stocks into their portfolios. Penny stocks should compile no more than 2.5% or your portfolio. The reasons why penny stocks are important in your portfolio are because they give you the right balance between high risk stocks and low risk. All stocks are risky in some way, but many people dislike penny stocks because they are usually companies that are in turmoil or are newer to the market. But the most important thing about penny stocks is that they give you a great balance between fast income and growth. You never know when you might hit that diamond in the ruff and find a company like Google, Yahoo, or Microsoft. Just imagine if you were to pick out 1 winner in ever 5. If that 1 was like Microsoft then you just won. But the facts are that if you do your research rights the likelihood of you picking out a good stock are 1 in 2. Those are great odds. What have you invested in lately? Are any of the shares that you bought ready to sell yet? And if so are they going to sell for a profit? Look at this example; if you bought 100 shares of TTT for $10 and then you bought another 100 shares of HHH for $3. You just spent $1300 on stocks, but what has the better chance of getting your money back fast? The truth is they both could get your money back and

  2. profit just the same, but the penny stock has a lot less points to increase in order to reach that goal. For more information you can consult with our experts at Paradigm Capital Management. Paradigm Capital Management employs a disciplined, bottom-up approach when it comes to small cap investing and micro cap funds, with an emphasis on fundamental analysis and extensive management contact. We have the expertise when it comes to small cap investment to achieve your financial goal, contact us at (518) 431-3500 OR visit us here: http://paradigmcapital.com/

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