Top 3 Penny Stock Books for Newbies

penny stock books

As of November 20, 2020, the United States unemployment rate is just under 7%. Now, when less than 800,000 Americans apply for unemployment insurance on a weekly basis, it is seen as “progress.” While stock investment may not be a priority now for many, it is a financial instrument too many neglect. In fact, prudent investment is an important part of achieving financial security. And you don’t need a lot of money to start investing; you can start with penny stock investment. There are many penny stock books you can read to learn how,

Investing in penny stocks is an affordable and user-friendly way to penetrate the complicated world of investment, especially for amateurs. Also, penny stocks are an affordable buy-in relative to stock market investing as well.

So, here are three penny stock books you should look into buying to learn more about the subject.

Before we get into all of that, let explain what penny stocks are and why they are worthwhile investments.

Before Buying Penny Stock Books…

A penny stock is not literally a stock worth a penny. Penny stocks are a reference to stocks that trade for amounts less than $5 a share.

Penny stocks are offered by companies that are in danger of closing, ran into regulatory trouble, or are new and unproven. Many companies that offer penny stocks have lost the confidence of its investors and may not survive much longer.

Penny stocks are offered through traditional stock exchanges, like the New York Stock Exchange, and via smaller over-the-counter electronic transactions.

You can also transact in penny stocks via the Over The Counter Bulletin Board (OTCBB), a fully electronic medium. Or, you can transact in penny stocks via penny stock newsletters and specialized directories as well.

Penny stocks are low liquidity financial instruments that must always be leveraged strategically.

That means that you should know what you are investing in beforehand. Otherwise, you may not be able to sell it afterwards.

Invest in Penny Stocks: A Guide to Profitable Trading by Peter Leeds

Peter Leeds is a financial authority on the subject of penny stock investment. In fact, Leeds has written several penny stock books with the purpose of enlightening novice investors.

Leeds has been a penny stock investment and shares trading authority for over 15 years and counting. He has generated over 41,000 subscriptions for his investment advice newsletters over his career.

Leeds has been featured as a finance expert on Fox News, CNN, CBS, NBC, and multiple other news channels. Leeds famously began investing at the age of 14; he bought one penny stock but ultimately lost $3,600 on the investment.

The lesson that Leeds wants to impart upon novice investors is that it takes time to learn the tricks of trade.

Leeds used his life experiences to launch his company Leeds Analysis. His company uses proprietary calculations to identify which penny stocks are more likely to offer significant returns relative to others.

Invest in Penny Stocks informs readers of the same techniques and analysis that Leeds uses himself to identify companies with the most promising penny stocks.

An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund by Timothy Sykes

Financial analyst and stock trader Timothy Sykes is a well-respected for his stock trading insight and views. Sykes has been a featured guest on news channels like CNBC and Fox News many times.

Sykes even was the star of a short-lived financial information show called Wall Street Warriors.

The now defunct financial periodical Trader Monthly named Sykes one of its “Top 30 Under 30,” back in 2006. It was the very next year that Sykes wrote a stock investing book that would cement his reputation as an investor in the know.

An American Hedge Fund, published in 2007, documents how Sykes became a young millionaire by investing in penny stocks.

In his book, Sykes documents how he leveraged a $12,000 Bar Mitzvah financial gift into $2 million via penny stock investments. Incredibly, Sykes accomplished this financial feat before he even graduated from college.

While working on a philosophy degree at Tulane University, Sykes launched a hedge fund called Cilantro Fund Partners. It is after this ambitious and youthful start that Sykes continued his successful career trajectory in finance.

An American Hedge Fund has useful tips, investing advice, and anecdotes that will inspire novice investors. Definitely one of the better penny stock books you should check out.

The Guide for Penny Stock Investing by Donny Lowy

Donny Lowy is a stock market analyst, investment expert, and business entrepreneur with over two decades of experience.

Lowy has been investing and trading in penny stocks for decades and innately understands how the investing system works.

The Guide for Penny Stock Investing has been designed by Lowy to be ready friendly and easy to comprehensively digest. Penny stock investing is not the same as value investing at all, but both financial practices share similar themes; finding value in stocks others miss.

Penny stock investing requires the dedication to invest time and research in practicing this financial craft. Lowy offers readers decades of his experiences, and those of similar investors, in penny stock trading.

Real-life penny stock investments are also provided in this book. According to Lowy, readers can potentially learn how to recognize penny stock opportunities that can increase returns by 500%.

The Guide for Penny Stock Investing is one of the better penny stock books for amateur investors to learn the basics of stock investing.

Penny Stock Books and Practicality

It is my hope that I have not made penny stock investing sound easier than it really is to do.

You really need to do advance research and have a rationale for buying penny stocks. What is it about the company that makes you believe that it has value others are missing?

After all, a company that is selling its stock for under $5 a share is either in trouble or too new in business to make a mark.

Try to transact in penny stocks offered in the larger exchanges for added financial protection.

The best way to fail at penny stock investment is to buy the wrong penny stock for the wrong reasons at the wrong price.

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