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Where can I get a list of Penny stocks to buy?

Both novice and veteran investors should be aware that penny stocks are very risky investments. It is very important to shortlist the stocks that are worth investing in and then make your final choice by eliminating the weaker options.

Do you think it is easy to make such a list? Think again. You need to pay close attention and consideration to the process for two main reasons: there are many scams involving penny stocks, especially on the internet, and the other is that these stocks are very risky. Fortunately, there are ways to ensure that the penny stocks on your list are the best, if not the cream of the crop.

Do your research

This step cannot be overstated. The process is important, whether it’s for a penny or for conventional stocks. However, the need to research penny stocks themselves, the company that issues them, and trends in the industry is more important simply because of the higher risks involved.

Warning: Remember that Penny Stock and its companies are not responsible for complying with strict reporting requirements and therefore the information presented may not be accurate!

Whenever possible, always double-check the information, especially when it is labeled as inside information. You want to avoid falling for marketing tricks that aim to get rid of bad stocks before the stock price drops.

Penny or small-cap stocks with potential are often those that come from legitimate companies that are listed with the appropriate government agencies and are recognized as upstarts in the industry. Beware of companies that are being promoted over the phone by telemarketers and stock brokers; watch the movie Boiler Room to see what we mean as they are often fake organizations.

Do your analysis

Now, assuming you’ve done your research and therefore identified penny or small-cap stocks that have potential, you should begin your technical and fundamental analyzes, as well as other tools and techniques. For your information, fundamental analysis involves examining the financial statements of the company, preferably the audited and updated ones. You may have a bit of difficulty in this regard for penny stocks due to reliability and accessibility issues with this information. Still, if the business is legitimate, it should have reliable financial statements available for perusal.

Technical analysis is a fancy phrase for studying stock price charts over a set period of time. You will also find problems with technical analysis, as it requires two things that penny stocks are not: moving with relative predictability and trading in large volumes. Still, this can be overcome with the right tools and techniques.

Ultimately, your short list of penny stocks will largely depend on how well you’ve done your research and analysis. The biggest mistakes you can make in this regard are relying on inside information, blindly following trends, and mindlessly investing.

Do your research

This step cannot be overstated. The process is important, whether it’s for a penny or for conventional stocks. However, the need to research penny stocks themselves, the company that issues them, and trends in the industry is more important simply because of the higher risks involved.

Warning: Remember that Penny Stock and its companies are not responsible for complying with strict reporting requirements and therefore the information presented may not be accurate!

Whenever possible, always double-check the information, especially when it is labeled as inside information. You want to avoid falling for marketing tricks that aim to get rid of bad stocks before the stock price drops.

Penny or small-cap stocks with potential are often those that come from legitimate companies that are listed with the appropriate government agencies and are recognized as upstarts in the industry. Beware of companies that are being promoted over the phone by telemarketers and stock brokers; watch the movie Boiler Room to see what we mean as they are often fake organizations.

Do your analysis

Now, assuming you’ve done your research and therefore identified penny or small-cap stocks that have potential, you should begin your technical and fundamental analyzes, as well as other tools and techniques. For your information, fundamental analysis involves examining the financial statements of the company, preferably the audited and updated ones. You may have a bit of difficulty in this regard for penny stocks due to reliability and accessibility issues with this information. Still, if the business is legitimate, it should have reliable financial statements available for perusal.

Technical analysis is a fancy phrase for studying stock price charts over a set period of time. You will also find problems with technical analysis, as it requires two things that penny stocks are not: moving with relative predictability and trading in large volumes. Still, this can be overcome with the right tools and techniques.

Ultimately, your short list of penny stocks will largely depend on how well you’ve done your research and analysis. The biggest mistakes you can make in this regard are relying on inside information, blindly following trends, and mindlessly investing.

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