Good Penny Stocks
Trying to figure out how you are going to get ahead in today’s tough world and achieve the financial success which you crave can be an intimidating prospect. However, do not let this dissuade you from reaching for your financial dreams because you feel overwhelmed by all of the information which only seems to complicate things. Yet caution should be applied to any speculative investing decisions concerning penny stocks.
Spend some solid time researching the basic investing resources in order to better understand them.
Penny stocks and microcap stocks can be found trading on the OTC Bulletin Board and the Pink Sheets quotation systems. The electronic quotation system of the OTCBB offers a wide variety of market news, statistics and quotes.
Due to the volatile nature of penny stocks, the more research that can be done, the better off the investor may be in a position to make any speculative investing decisions. This additional information on the Pink Sheets can be helpful in understanding some of the additional details of the OTC, aka Over The Counter securities trading processes.
It may be possible to locate established companies on the NASDAQ which are trading at considerably lower values. It would require research into the reasons why, but this could help the investor uncover stocks which are trading for less than $5 dollars per share.
It may seem like many of the good penny stocks would make a great way for new investors to find out how this form of investing actually works. However, just because the price is low, often well below $5 per share, does not mean that this is a safe investing strategy. Good penny stocks can be those which perform well over short periods of time, or which perform best for people over much longer periods of time. There are investing strategies which will focus on one or the other but it should be understood that timing is very important to getting the most out of any perceived good penny stock. Investing strategies which focus on penny stocks that show a recurring fluctuation in their value on a regular basis might be quick trade or day trading opportunities involving buying on the low side and then selling on the high side allowing the investors to earn a profit on a recurring basis. This skill can take years to actually become proficient at.
This same approach is used in a wide variety of investing strategies which include blue chip stocks, midcap stocks and commodities among others. The timing is the key to this type of investing and although it may seem fairly straight forward, and it is in theory, the fact is that a good deal of research goes into following the stocks before deciding to take advantage of the recurring fluctuations in the stocks value. There should be a strong understanding about the way that the penny stocks are to be sold when the time comes. Many investors will use stock brokers who are far more familiar with not only finding the good penny stocks to watch, but with the when, where and how to sell the shares as well.
When looking at penny stock investing strategies, there are investors who will look at finding good penny stocks to watch and invest in because they believe that the value of the stock is going to increase in the near future. Penny stocks offer a unique option in the world of investing in stocks because of their relatively small investment price per share. People typically think of this as an opportunity to potentially be getting in on the next big thing. This goes beyond following the fluctuating penny stock values example mentioned above, as it means buying based on possible future performance. One of the key components to finding these is to take a look at what some of the hot penny stocks are right now, and then to determine why they are attracting attention. As mentioned before the quotes can be found on the OTCBB. Additionally shares trading for below $5 per share may be located on the NYSE including the AMEX, the Pink Sheets quotes as well as the NASDAQ.
Stock market news sources such as Market Watch as well as CNN offer a large collection of stock market news and information which can be useful for staying current on various markets around the world.
Ultimately your research may lead you to companies which are offering shares considered to be penny stocks, under five dollars a share. It is best to find out whether something big is happening with the company, or if the prices have been falling to this level for some reason. Many times a start up company has gotten a huge new contract in their business sector and they appear to be on their way up, as the share values are on the rise, yet still low. On the other hand there could be significant concerns surrounding the company and the value of the shares have been declining to this point.
Penny stocks have the unique potential to allow people to buy stock shares in new or smaller companies for literally pennies in some instances. The reality is that finding the good penny stocks may involve far more time than an investor has to commit to the process. Even sorting through free penny picks lists where some of these look enticing will be quite time consuming. Then there is the necessary research aspect which follows. Is a penny stock broker the answer? This is yet another question to consider. Ultimately the low share prices may be the main draw new investors find appealing about penny stocks. The fact is that any highly speculative investing is usually going to represent high risk though. Several of the resources listed on this page include some useful information that should help you understand more about penny stocks and their space in the world of speculative investing.