Most everyone has heard people tell grand stories about someone who was able to find hot penny stock picks and made themselves a massive amount of cash quickly and easily. Some of these tails make it seem like it was mere child's play. In reality, however, it is not so simple but it can be done. This article will cover some basic information about how you can find hot penny stock picks and hopefully make a handsome return.
First of all, you should now what a penny stock is. The SEC has given penny stocks this definition: any stock whose price is under $5. Pretty simple. In order to find hot penny stock picks, you will need to also know that these shares often trade on was is known as the Over-The-Counter Market (OTC). There are also hundreds you can find listed on the NASDAQ. The ones that are traded OTC are not as regulated and therefore carry a bit more risk.
One thing you will want to do when you first start out trying to find hot penny stock picks is to make sure you only invest 10% of your entire portfolio in them. This will help to control some of the risk involved with these investments.
The single most import thing you need to do when you find hot penny stock picks is to also do your own research. Some investors get lucky and hit a homerun with their first penny stock but that is very unusual. You need to make sure you undertsand the company and need to confirm that it is investment-worthy yourself. This will help ensure that you are able to find hot penny stock picks and then have a good chance of making lots of money with them.
Your next step to find hot penny stock picks is to hire a good broker. Many online brokerage houses will allow you to buy these shares but there are also several that won't. Be sure that you confirm they do accept orders for stocks under $5 and even under $1. If you do find hot penny stock picks, it will do you no good unless you are actually able to buy the shares.
Once you find hot penny stock picks and research the companies, go back over the information and make sure you have covered all the bases. You should see that management is experienced in business as well as in their particular industry. You will also want to confirm the company's plans for the future and that their product or service offering is innovative and can compete. If you find hot penny stock picks that have their shares listed on the NASDAQ, the research may be a bit easier as more information should be available.
Once you find hot penny stock picks and have done your homework, you will be ready to invest and hopefully make a handsome profit because of it. People do make money everyday with penny stocks but it is because they invest carefully and also know how to mitigate their risk.
One last thing - you should consider ordering a newletter to help you find hot penny stock picks. You can find a few that specialize in this area and have very good records. - 16732
First of all, you should now what a penny stock is. The SEC has given penny stocks this definition: any stock whose price is under $5. Pretty simple. In order to find hot penny stock picks, you will need to also know that these shares often trade on was is known as the Over-The-Counter Market (OTC). There are also hundreds you can find listed on the NASDAQ. The ones that are traded OTC are not as regulated and therefore carry a bit more risk.
One thing you will want to do when you first start out trying to find hot penny stock picks is to make sure you only invest 10% of your entire portfolio in them. This will help to control some of the risk involved with these investments.
The single most import thing you need to do when you find hot penny stock picks is to also do your own research. Some investors get lucky and hit a homerun with their first penny stock but that is very unusual. You need to make sure you undertsand the company and need to confirm that it is investment-worthy yourself. This will help ensure that you are able to find hot penny stock picks and then have a good chance of making lots of money with them.
Your next step to find hot penny stock picks is to hire a good broker. Many online brokerage houses will allow you to buy these shares but there are also several that won't. Be sure that you confirm they do accept orders for stocks under $5 and even under $1. If you do find hot penny stock picks, it will do you no good unless you are actually able to buy the shares.
Once you find hot penny stock picks and research the companies, go back over the information and make sure you have covered all the bases. You should see that management is experienced in business as well as in their particular industry. You will also want to confirm the company's plans for the future and that their product or service offering is innovative and can compete. If you find hot penny stock picks that have their shares listed on the NASDAQ, the research may be a bit easier as more information should be available.
Once you find hot penny stock picks and have done your homework, you will be ready to invest and hopefully make a handsome profit because of it. People do make money everyday with penny stocks but it is because they invest carefully and also know how to mitigate their risk.
One last thing - you should consider ordering a newletter to help you find hot penny stock picks. You can find a few that specialize in this area and have very good records. - 16732
About the Author:
Eric absolutely loves penny stocks and writes about them regularly. You can make AMAZING returns with hot penny stocks now.
