| What You Should Know About Penny Stocks |
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| Written by Mike Sanders |
| Thursday, 08 July 2010 19:08 |
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Going into the penny stock market, you'll want to be well prepared. Don't go into it without having at least the basic information in mind. Doing so might cost you your hard earned money. Doing a little research first could mean the difference between making money and ending up broke! Spending a few minutes a day reading up on what's going on in the market could help you find the hot penny stocks of the day.
Going into the penny stock market, you'll want to be well prepared. Don't go into it without having at least the basic information in mind. Doing so might cost you your hard earned money. Doing a little research first could mean the difference between making money and ending up broke! Spending a few minutes a day reading up on what's going on in the market could help you find the hot penny stocks of the day. This article isn't intended to make you rich or make you a penny stock pro, but it will help keep you from feeling like you don't know what's going on around you. Taking time to read these few basics will get you off to a good start on your penny stock journey. Always a risky investment, a penny stock could net you a large profit if you spend time getting to know your stocks before purchasing. Penny stocks are listed on NASDAQ, the New York Stock Exchange, and the American Stock Exchange. These stocks will sell for about a penny a share, and have a share price below $5. You'll want to find a list of all all penny stocks available before buying into them. Look for the hottest penny stock picks, as it only takes a small rise in the price of the stock for you to start making money from them. A lot of people like these stocks for that reason, because they're cheap to buy and easy to sell. If you want to succeed in the penny stock market, here are a few tips on what to avoid: 1) Ignore any stocks being promoted in emails. These are often the result of a paid promoter trying to build hype for a poor stock. 2) If you can't find the stock on NASDAQ, the New York Stock Exchange, or the American Stock Exchange, you probably won't find a profit in that stock. Stick to stocks that are confident enough to be listed on the major exchanges. 3) Successful companies are those that can build revenue. A company needs to show so much revenue annually before it can be be successful, so try to stay away from any penny stock picks where the company shows less than $10,000,000 in annual revenue. 4) Finally, if you aren't comfortable with a company, then follow your instinct and move on. If you don't like a company, are unfamiliar with it, or can't find any information on it, your best bet is go with your gut and find a different penny stock pick to invest in. Again, the best thing you can do for yourself when looking for the best penny stock picks is to arm yourself with knowledge. Know what to look for and what to avoid. The penny stock market isn't for everyone, but if you learn all you can ahead of time, you're likely to feel a lot more comfortable with it. And who knows? If you study up on the penny stock picks well, the next new hot penny stock might just be the one you've invested your money in! DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Learn more about Penny Stocks. Stop by Mike Sanders' site where you can find a free list of all penny stocks. |