Penny Stocks Alert: run away as fast as you can. While this might seem like prudent advice, there is a way and a method to reign in the danger to your portfolio. Certainly they would not form a cornerstone of your investing the way Blue Chips or Treasury Bonds might be. On the other hand, they might become that portion of your investing that you might delegate as fun...we shall see.

As a former employee of Salomon Smith Barney, many people come to me and ask financial advice questions in general and about penny stocks in particular. Even though I no longer work in the financial arena, there are some investing principles that stand the test of time. A wise investor should have a diversified portfolio that includes stocks, bonds, and cash. This might seem kind of boring so it is pretty commonplace for certain individuals to seek out some excitement by investing in penny stocks. This enthusiasm stems from the fact that penny stocks have been notorious for producing wild gains as well as some pretty scary losses!

So how does an individual dabble in this arena while keeping a safe distance between themselves and danger. The big secret is not too unlike investing in the Blue Chip sector of the stock market. You need to do some homework with regard to the particular company that you are contemplating purchasing. Here is where most people fall down as they do not have the patience for the requisite due diligence. Does that mean that you cannot play here. Absolutely not! You can do what countless others have done before you. That is, you can hire others to do the work for you. Now before jumping to conclusions, let me be quick to point out that the hiring of others that I am referring to simply means taking out a subscription to a newsletter that specializes in penny stocks.

The nicest feature about most on-line subscription services that deal with penny stocks is the free trial that they offer prior to becoming a full subscriber. This allows you to test their offerings so as to be in a better position to decide if this type of investing is right for you. You will learn all about the Penny Stocks that are worth chasing after as well as some that are more on the risky side. After reviewing several services, I have come to enjoy the information put forth by [http://www.premiumpennypicks.info]

The last piece of the investing puzzle that I would like to leave with you before you go off and subscribe to a newsletter dealing in penny stocks is this: Make sure that the percentage of your portfolio that you delegate to this type of investing is 1)very small, say something on the order of 5% and 2) be comfortable knowing that this part of your investing could become worthless just as quickly as it could skyrocket to your wildest dreams. Don't bet the rent money here just in case! I would also recommend that you take a look at some other articles I wrote on penny stocks over here: Penny Stocks: How To Increase Your Chances For Success and also over here: Penny Stocks: The Good, The Bad & The Ugly

To Your Success

Chris