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Not All Cheap Stocks
Are Created Equal

Cheap stocks — undervalued bargain stocks trading at big discounts, generally priced at less than $10 per share — are the way to build your wealth. It's just a lot easier to double your money on a $3 stock than it is when you buy one that's trading at $50.

But for investors who either don't know better or aren't careful, buying cheap stocks can be much riskier than purchasing higher-priced stocks for one very important reason: Most cheap stocks are junk and doomed to fail.

Protect your portfolio by learning how to separate the cheap stock bargains from the busts. Here are five red flags to look out for when buying cheap stocks. In my experience, these warning signs are usually a strong signal to stay away.

NEXT – Tip #1