For most investors out there penny stocks are usually a long shot taking up a small percentage of their portfolios while there are others who are swinging for the fences and fully invested in the grandslam wealth creation approach. I’m not judging you on where you’re at; everyone has their own level of risk tolerance. But if you have any penny stocks at all, have you considered them as a portfolio?

The Portfolio Approach.
In a general investing sense you would be diversified, so why not do the same in penny stocks. It’s a great way to spread your risk across different industries, stages of companies, and timeframes.

All of the same rules for picking larger companies still apply to picking the smaller market cap ones too. There are a few more things to consider when you’re dealing with riskier decisions though, but a key investing tennet is diversification through portfolio building and as such it’s worth considering.

Need to learn more? Read about picking profitable penny stocks