Why Low-Risk Stocks Can Bring You High Rewards
With great power may come great responsibility, but great risk does not mean great potential returns. Don't fall for this trap! Instead of assuming all risky investments are growth investments, remind yourself of two key principles.
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Risky companies, particularly penny stocks, receive a level of undeserved attention from investment blogs and the dark corners of investing Twitter. A penny stock is a company that has a share price under five dollars, and countless self-proclaimed "successful investors" swear they've made fortunes overnight by trading these dirt cheap shares. However, you should take these gurus' claims with a grain of salt. Penny stocks may simply represent businesses that have yet to establish their reputations -- or they may be outright frauds.
Source Fool.com
