Who Should Trade Penny Shares

When investing in penny shares you should be prepared to lose money. It is best that you already have experience in dealing stocks and shares. Some brokers recommend that you do not invest more than 20% of your entire share portfolio in these speculative shares. It is also recommended that you own your own home and that you have already made sufficient provision for your retirement.

If you cannot afford to lose any of your capital, have little or no assets, or you are a student or not in steady employment then you should not be thinking about dealing in penny shares. Under no circumstances should you borrow money to invest in penny shares.

What now?
That's the end of our brief guide to the world of penny shares. Next, you should familiarise yourself with some of the many terms you will come across with our comprehensive glossary. You should also take a look at our list of UK Penny Stocks.