Blog : Best Penny Stocks

by Peter Leeds on April 23rd, 2012

In today's best penny stocks blog, we'll talk about the difference between trading and investing.  Also, we have another of our best penny stocks being profiled this Wednesday for subscribers (so it's best subscribe!)

So, what's the difference between trading and investing?  A lot, actually.

The best way to describe it?  

Trading is making short term decisions to buy and sell penny stocks, to attempt to profit best from small moves in share prices.

Investing is buying penny stocks that will do well as a business over time.

Trading penny stocks is for shorter periods of time, and generally involves a lot more work and has greater potential risk.

Investing takes a little longer (weeks and months, not minutes and hours).

I've done both (a lot actually), and even got into derivatives and options.  My experience has always been that the best way to profit is from investing in the best, highest quality penny stocks as their business takes off.  

For example, making 10 times my money on Sensio technologies was about getting in on a best company early.  That was dramatically more effective than trying to make dozens and dozens of 5% and 10% gains from penny stocks (which of course also come with plenty of small losses).  

One or two of the best plays in penny stocks is all you truly need.  Look at Absolute Software, for example.  One follower of mine was up a half a million dollars on it from a small investment.  That didn't happen over the course of weeks, it happened over months (and a couple of years actually).

(ABT went from 80 cents to a split adjusted $30 or so...)

During that time, this very busy gentleman did not have to sit in front of multiple computer screens all day long.  He simply had to let the company's business plan play out.

So, to put it in perspective, the best thing investors in high quality penny stocks need is... PATIENCE.  Keep an eye on the best penny stocks you invest in, and make certain they are on track operationally.  That is the path to the best rewards.

Make sure to visit our best penny stocks page.  And when looking for the best penny stocks, always remember to avoid pink sheets penny stocks, and any penny stocks you hear about for free.