Good Penny Stocks - The Best Way to Pick a Winning Penny Stock
Choosing good penny stocks is just about an art form in itself.
Before you rush out and buy your first stock you need to slow down and do some basic research.
Remember, a little research now can save you a lot of money later.
Failure to do a little research is one of the most common problems people have when buying stock and they can't understand why they didn't make any money.
I don't want that to happen to you.
The following are some tips that you can use before you start spending your hard earned money in the market.
The first thing you should do is to look at the history of the company whose stock you are interested in buying.
How long has the company been around? This is not to say that a new up and coming company won't be a good choice.
But history shows that companies that have been around awhile are better choices.
Does the company have a solid business plan you can read over? What are their plans for the next couple of years? Are they planning on bringing out a new product line or getting rid of a product that has not done well? Are they planning on any major expansions or building projects? Now look at the history of the stock itself.
Has it held its value since it went public? Has it gain value or has it lost value since it went public.
You want to pick a stock that has consistently increased in value and not lost any value.
Now you need to see where the stock is listed.
Is it listed on the AMEX or the Nasdaq Small Cap exchanges? These are two of the biggest stock exchanges and they have very strict requirements for a stock to be listed there.
Two of these requirements require the companies to be open about their business and have a high level of communication with their shareholders.
In addition you should take time to learn about the stock market in general.
Discover what the different terms mean.
Go to the different stock market forums.
Look at who are making the most posts with the best information.
Send them a private message and ask if they have a newsletter you can subscribe to.
You will find most people will be willing to help you or point you in the best direction.
Picking a good penny stock does not have to be hard.
There is also the risk of losing your initial investment.
But with a little research on your part you can reduce that risk tremendously.
Now go out and find that winning stock.
Before you rush out and buy your first stock you need to slow down and do some basic research.
Remember, a little research now can save you a lot of money later.
Failure to do a little research is one of the most common problems people have when buying stock and they can't understand why they didn't make any money.
I don't want that to happen to you.
The following are some tips that you can use before you start spending your hard earned money in the market.
The first thing you should do is to look at the history of the company whose stock you are interested in buying.
How long has the company been around? This is not to say that a new up and coming company won't be a good choice.
But history shows that companies that have been around awhile are better choices.
Does the company have a solid business plan you can read over? What are their plans for the next couple of years? Are they planning on bringing out a new product line or getting rid of a product that has not done well? Are they planning on any major expansions or building projects? Now look at the history of the stock itself.
Has it held its value since it went public? Has it gain value or has it lost value since it went public.
You want to pick a stock that has consistently increased in value and not lost any value.
Now you need to see where the stock is listed.
Is it listed on the AMEX or the Nasdaq Small Cap exchanges? These are two of the biggest stock exchanges and they have very strict requirements for a stock to be listed there.
Two of these requirements require the companies to be open about their business and have a high level of communication with their shareholders.
In addition you should take time to learn about the stock market in general.
Discover what the different terms mean.
Go to the different stock market forums.
Look at who are making the most posts with the best information.
Send them a private message and ask if they have a newsletter you can subscribe to.
You will find most people will be willing to help you or point you in the best direction.
Picking a good penny stock does not have to be hard.
There is also the risk of losing your initial investment.
But with a little research on your part you can reduce that risk tremendously.
Now go out and find that winning stock.
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