How many times have you kicked yourself for not investing in some of today's leading stocks back when they were actually affordable?
The majority of Americans find it nearly impossible to buy stock in their favorite companies because they're simply too expensive. For instance, Google was recently available for $780 per share and Apple at $422 per share. So how can you — the everyday investor — get in on the action?
"The easiest way to make life-changing money in the stock market is to buy stocks before they get expensive, and ride them all the way up," says Bill Matthews, editor of The Cheap Investor. The problem is that "Most people can’t tell the difference between an undervalued stock, and one that’s only cheap because it’s garbage."
Matthews, however, knows the difference. Since launching The Cheap Investor newsletter back in 1981, he's seen nonstop success. Of his 326 recent stock picks, 99% were proven winners; 157 of those moved up over 100%, 89 gained more than 200%, and 29 rocketed up 500%. His success is so well known, he's been featured on everything from Bloomberg and CNBC to The Wall Street Journal, Business Week and more.
What's His Secret? When smaller companies go public and make their stocks available for less than a dollar per share, small investors can easily and affordably purchase them. Often called "penny stocks," they are regulated by the SEC and other official authorities, and are traded in "over-the-counter" markets rather than the NYSE.
Here are the three most compelling reasons to consider purchasing these stocks:
1. Small Investment for Many Shares With penny stocks, you have the power to purchase thousands of stock shares for a rather small investment. For example, if a technology company is selling shares at 10 cents and you make $500 investment, you can own 5,000 shares. If the stock rises to just $1.00, your investment will turn into $5,000.
2. Huge Returns in a Short Amount of Time Unlike most stocks on the NYSE that can take years to grow, it is common for penny stocks to double and even triple in a single day.
3. Easy to Buy and Sell All you need is an online trading account to buy and sell these stocks, or you can use a traditional broker to place your trades.
A Powerful Trick of the Trade:
As you're probably aware, any stock has a certain degree of risk that comes along with it. This is why it's essential for you to do your homework and carefully research each stock you purchase.