People often approach the stock market with a certain level of trepidation – for good reason. With the hits the market has taken in the last several years, any investor is leery to contribute to any investment that might adversely affect their savings. Older investors usually tend to pick long-term investments that have little risk and low returns. No matter your situation, it’s never too late to start understanding and researching the market.
Penny stocks are investments that trade at five dollars and under. Good for short term investments, usually these stocks are a low investment priority, and can be a good way for new investors to practice on the market. These types of stocks can be bought and sold cheaply, and can result in excellent return for such a small investment. However, penny stocks are a speculative investments, but there isn’t the danger of losing a large investment. Look at penny stocks as a portion of money that’s set aside that you can risk.
For longer-term stocks, you’ll want to look into investments that have shown a consistent growth and return over a long period of time. Stocks, such as Johnson & Johnson, Apple, and Google, are always going to be a great way to put your money to work. These types of stocks still have the buy and hold mentality of committing to an investment for a long time and are designed for those planning for future retirement.
As we know, every stock is a risk, but there are different levels of risk involved. It’s up to you to educate yourself on the options, and decide which kind of stock works best for your unique needs.