How to Start Investing in Penny Stocks
Penny stocks are hot right now.
Actually they've been hot for some time.
Why not? Where else can you double or even triple your investment in a short period of time? I guess that's what make them so popular.
Penny stocks are not meant to be invested in for long periods of time.
Most are basically traded on a more of a short period of time.
Most of the time when I trade penny stocks, I'm in and out of the position within a few days.
Don't get me wrong though, I have (and currently) invest in a small company that has the right product that has potential to grow into the next Apple Inc.
The only difference between them and other stocks traded on the major indices is the value of each share.
A stock is considered a penny stock when the price per share is less one dollar ($1).
There are thousands of stocks that fall under this category, but which ones are the right ones to trade or to invest in.
It all comes down to doing your research into the condition of the company.
Look at the company's financial statements as well as their balance sheets.
Does the company have some contracts in place that will increase their next quarter's earnings report? When looking for information on penny stocks, you will find it harder to locate the information quickly and easily.
The information is out there, you just have to find it.
Go online to see if the company has a website.
If a company is publicly traded, they will have a website.
On there you can find all their press releases and contact information if you feel you want to get in touch with them and ask some questions.
You'd be surprised to see how many times you'll get to talk to the CEO or the CFO.
As for the stocks that you're looking to double your portfolio in just a few days, those are not found by looking at the fundamental side, but of the technical side of the analysis.
One you know how to read the charts, you'll understand the signs to look for just before a penny stock has a breakout.
The daily volume of shares traded is something to keep an eye on.
When you see the the amount of shares being bought each day increasing and the price has stayed flat or a slight gain, that is one of the signs to look for.
You can use these penny stock websites that will send you free daily e-mails to you.
Each day they'll tell you which stock is going to have a breakout, If you don't have the time to stay close to your trading screen, I suggest you avoid this type of trading since by the time you can get out, the stock has already lost momentum and returned back to the original price (if not lower) of where you bought it at.
If you do have time to day trade, be careful and never invest more than 20% of you portfolio into penny stocks.
Actually they've been hot for some time.
Why not? Where else can you double or even triple your investment in a short period of time? I guess that's what make them so popular.
Penny stocks are not meant to be invested in for long periods of time.
Most are basically traded on a more of a short period of time.
Most of the time when I trade penny stocks, I'm in and out of the position within a few days.
Don't get me wrong though, I have (and currently) invest in a small company that has the right product that has potential to grow into the next Apple Inc.
The only difference between them and other stocks traded on the major indices is the value of each share.
A stock is considered a penny stock when the price per share is less one dollar ($1).
There are thousands of stocks that fall under this category, but which ones are the right ones to trade or to invest in.
It all comes down to doing your research into the condition of the company.
Look at the company's financial statements as well as their balance sheets.
Does the company have some contracts in place that will increase their next quarter's earnings report? When looking for information on penny stocks, you will find it harder to locate the information quickly and easily.
The information is out there, you just have to find it.
Go online to see if the company has a website.
If a company is publicly traded, they will have a website.
On there you can find all their press releases and contact information if you feel you want to get in touch with them and ask some questions.
You'd be surprised to see how many times you'll get to talk to the CEO or the CFO.
As for the stocks that you're looking to double your portfolio in just a few days, those are not found by looking at the fundamental side, but of the technical side of the analysis.
One you know how to read the charts, you'll understand the signs to look for just before a penny stock has a breakout.
The daily volume of shares traded is something to keep an eye on.
When you see the the amount of shares being bought each day increasing and the price has stayed flat or a slight gain, that is one of the signs to look for.
You can use these penny stock websites that will send you free daily e-mails to you.
Each day they'll tell you which stock is going to have a breakout, If you don't have the time to stay close to your trading screen, I suggest you avoid this type of trading since by the time you can get out, the stock has already lost momentum and returned back to the original price (if not lower) of where you bought it at.
If you do have time to day trade, be careful and never invest more than 20% of you portfolio into penny stocks.
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