Penny stocks are basically stocks that are very cheap to buy. They can grow to really boost your portfolio. Or they can crash and burn. Like all stocks.

I don’t believe in just going for one type of stock — I like to have a whole range in my portfolio, so I hold stock in Tesla, Amazon and standard companies, along with Etherium, Bitcoin and Ripple. But I do like to invest in the more risky penny stock companies at a really low level. I tend to aim for technology companies who in the future may make a huge impact on their work.

You can use tools like TradingView to look at charts. But that is normally not enough. You need to know WHY the price is so cheap.

  • Has the company only just been listed?
  • Has there been some bad press?
  • Are they subject to some regulation that is limiting their ability to function?
  • Does this product have a future in 5 or 10 years?
  • Has the company just diluted their stock (this is where they issue more shares to raise capital, but this will devalue the existing stock).

I do like Penny stocks in my portfolio. Mainly because I want to support small companies as well as building up my families wealth in the future.




Writing about Trading, Currencies and shares

Love podcasts or audiobooks? Learn on the go with our new app.

12 Ways To Thrive In An Economic Downturn

How I Stopped Impulse Buying by Switching to Mindful Minimalism

Investing as a boy in his twenties — My First Portfolio Update

A Simple Formula for Rethinking Money

Ray Dalio All Weather Portfolio Review, ETFs, & Leverage

all weather portfolio asset allocation

The Fight for $15 (Per Hour) Comes to the Gig Economy

4 Ways to Have a Clear Financial Goal for Long-Term Investment

Here’s Everything One Needs to Know About Systematic Transfer Plan (STP)

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Paul Clevett

Paul Clevett

Writing about Trading, Currencies and shares

More from Medium

What does a previous founder, and CEO, do after winding up their company?

Hiring Through A Recruitment Agency Will Give You Better Employees — Here Are 3 Reasons Why.

I have a whale of an idea and I need help eating it!

Top Shot Debuts