Its all based on research. I brought Achillion Pharmaceuticals, Inc. (ACHN) today and made 47% plus Idenix Pharmaceuticals Inc (IDIX) and made 229%
I knew Achillion Pharmaceuticals (ACHN) as well as Idenix was going to surge today because of news that Merck would purchase biotechnology company Idenix Pharmaceuticals for $3.85 billion.
Of course I sold those positions. I am good with those returns, time to move into other things. It's all about research my friend and based on that research, My friends and I would be partying tonight here in my California home and deciding on our next investment within this market and other places. No risk No rewards. Life is all about chances so do not be afraid to take chances.
Sectors to look into are tech, financial and the health sector. Its a lot of money to be made within those sectors. You can not get rich by just simply working for another person. You must save and invest.
Best of Luck
Look at stocks trading between one dollar and 5 dollar that trade on the Nasdaq ans Amex. Avoid the otc if you are new to trading or investing. These stocks are cheaper and more reliable to invest in. Look for volume spikes , breakouts( new highs) and support levels, Don't buy just because a stock is going up, wait for it to pullback and start breaking to the upside for the next leg up, this is when you enter. Go to finviz.com and do a scan of small caps with high volume so you can get in and out efficiently.
I suspect by cheap stock you mean low priced stock.
A stock could be low priced, but very expensive when compared to the intrinsic value of the company. If a company is losing money, it could be a bad investment even if sold at a low price per share.
As eluded to by the other comentors, you should strive to buy stocks which are a good value in relation to the intrinsic value of the company. These are generally less risky, because if they sell low in relation to their intrinsic value, the won't depreciate in price as much as a stock which is selling for a very high price in relation to its intrinsic value.
Frequently stocks are selling at a low price, because the company is a poor company.
In the stock market, how could you benefit from buying cheaper stocks? Is it riskier than buying expensive ones?
