Am I qualified to advice in earnest?
I have been in the stock market trading for the last ten years and dabbling in everything from the bigger stocks that have highest values to investing a substantial amount of money in new penny stocks, I have done them all. There is a different rule that you play in the stock market. One needs to not only learn the ways that the stock market works but also a lot about their own psyche and intelligence and the way the humans behave!
That is a lot of work to do!
Yes, but no! Not exactly!! In order to be successful in the stock market, you will first of all need to do a thorough understanding of your own self. Are you someone who is extremely careful with their finance? are you someone who values their financial commitments seriously? Or someone who is a big risk taker?
Understanding yourself will help you understand what kind of investment is really good for you:
For instance, if you are a risk-averse person then you must invest in fewer shares albeit the higher value ones so that even if the prices fall by a little, there is always the cushioning that is available. But say you are a high-risk investor and you know that losing a little more of your investment will not make a hole too big in your pocket but the risk if taken can help you reap a big booty, then you must and must, as a rule, invest in penny stocks.
What are penny stocks?
Till recently they were stocks that were lesser than one dollar in value but now the federal government has increased the upper limit to $5. However, they are a high-risk investment and the investment in them is subject to market risks. You may want to read the fine print before venturing into this form of investment.