George Mitchell

How to choose a penny stock wisely

My Blog
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

There is no question but that you can be highly successful at penny stock investing if you choose your stocks wisely. Obviously, you are not going to be successful 100% of the time because penny stocks can be both higher risk and volatile but there are some things that you might care to keep in mind:

  • The stocks that you are purchasing are issued by companies that are small and not high-profile. As such, these companies are not easily recognized.
  • Penny stock companies have no track record to speak of (good or bad or otherwise) so this is not a factor that you can take into consideration.
  • They may not have a lot of tangible assets to speak of or even a stable existing business.
  • It is hard to forecast the future performance of these companies because there is so little information available.
  • Your broker may be working against you instead of for you.

Despite all the problems, penny stocks still have a dedicated following of investors. This is because they are a cheap way of investing in a company that could have an outstanding future. Are you going to give up the chance to get in on the ground floor in the next company that has the potential to become Apple? Are you going to give up the opportunity to acquire a sizeable quantity of stock without emptying your pocket? These are the considerations that keep investors coming back to the penny stock table.

Pay some attention to the share structure of the penny stock company in which you propose to invest. This means studying the pattern of ownership and how the shares are distributed between the various shareholders. Let us study the importance of this aspect. Let us assume that you have acquired a substantial number of shares in a penny stock company without studying the structure and subsequently find that another shareholder has millions of shares held through an offshore account.

If this shareholder happens to be a stock manipulator, it is likely that he will sell as soon as you buy to take advantage of the price rise caused by your purchase. In due course, the value of your holding is going to drop sharply because of the correction in the market. You are left with a substantial loss. Even if the price does hold, you may not be able to find buyers for you stock because they will consider the stock too pricey and too risky. You should therefore avoid buying penny stocks where you are at the mercy of a single shareholder or a small group of shareholders.

You can always improve the odds in your favor if you invest in a company where the stock holding is widely spread and there is a lower chance of manipulation by stockholders acting in concert. You should also aim at collecting as much information as possible on the company even though this may not be easy. After all, if you are unlikely to hand out a few thousand dollars to a stranger who confronts you in the park, why shouldn’t you apply the same standard to a penny stock investment?

George Mitchell

4 Essential Tips to make good money in Penny Stocks

Penny Stocks
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

Penny stocks have high risks associated with them and should be purchased carefully.

We’ve enlisted 4 important tips for making good money in penny stocks:

Tip 1:

Check the Trading Volume

If the trading volume of any stock is low, it is probable that you will lose your entire investment by relying on it. Most penny stocks traded at low volumes in comparison to blue chip stocks with mid or large capitalization. However, if the trading volume is very low, it means people are not willing to buy or sell the shares fast enough. It can be a risky situation and the stocks can start begin losing it worth. People think that there is no way to sell before they hit the bottom line, but the actual fact is that when the trading rate lowers, the investors should think about making their decision for quitting.

4-essential-tips-to-make-good-money-in-penny-stocks

Some experts suggest that there should be an average number of shares traded in a day since it is important for investors to make sure that the appropriate volume is being traded. The difference between the listed price and selling price has to be checked to make the best option. The spread goes high for the trusted shares and hence, you can make sure about the trading capacity of a stock by checking its volume. The average spread should be fair enough to encourage you for purchasing a particular stock. The stocks having extremely low volume should be DEFINITELY AVOIDED.

Tip 2:

Don’t completely rely on Free Newsletters

This is the worst mistake done by some investors. They take free picks from the penny stock newsletters and get greedy by blindly following the emails aimed at doing Pump and Dump scam. The people sending these marketing emails show that they are experts, but ultimately, they turn out to be fraudsters. Nothing in this world is free and if you are getting free advice taken, you’ll have to pay for it in some or the other way. Free can end up costing you the whole investment amount and this is the nature of penny stock world.

You are warned about taking suggestions from any free newsletters and subscribing to them because the people sitting at the other end are so clever that they would try to attract you with their nice words and make you invest into those underperforming scammed stocks.

Tip 3:

Find the Best Stocks to Buy

The best way to purchase the right penny stocks is different for all. You need to choose the premium and trusted stock picks because ultimately, it will be required to check out a few stocks from the list of thousands of stocks. After you check out the stock picks, it is essential to do your personal analysis on the particular lists and establish you own person list of stocks having probability to make you earn good bucks.

There are many experts charging nominal fee for giving the best stock tips and it is worth the fee to find the right person. The profit you can get by these picks will justify the fee and you will be glad to make the earnings. It is always good to pay for the services with which you have the probability to earn in huge numbers. After all, it is always preferable to make the right decision with fullest information. The penny stock pickers have to sniff out the truth before anyone else is able to do so. You can sell the best penny stocks and cherish the progressive approach with better ideas.

Tip 4:

Be careful for trading Penny Stocks

Penny stocks can trade on many exchanges, but those are not the major exchanges. There are penny stocks to be found on the OTCBB and Pink sheets, which are not much reliable. There are lesser chances for scams to occur in major stock exchanges, but the probability is on higher side with pink sheet stocks. The companies trading on OTCBB are less reliable and have the chances of getting fraudulent. The companies trading on major stock exchanges have better fundamentals than pink sheet stocks. The majority of penny stocks are failure because of mismanagement of regulations and less strictness in the pink sheets. The stock trading has to be done with you own research to make sure that there are lesser chances of getting losses.

The best way for penny stock pickers is to choose the best services for trading these stocks and use fixed money for investment. You might get greed for investing a big money, but controlling that feeling is the most important thing to earn good with penny stocks. Minimize your risks by making a smart move and earn good with penny stock investments for the best scope. You can get the real benefits by investing in the best stocks.

George Mitchell

Get the best Penny Stock Deal

penny stock market
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

If you are interested in investing in penny stock market, it is essential to gear up with intense knowledge regarding these stocks. You can never be sure about going up or down with these stocks and the excitement level is attained by investing in the right way. You can get the warnings for the best penny stock deals in the market as the best knowledge gives the most promising options. Read more http://www.nuuustock.com/4-essential-tips-make-good-money-penny-stocks/

Before jumping into penny stocks, it is important to get prepared with the best of knowledge. Your investment has many risks and loopholes which need to be covered with time. Mistakes are bound to be made, but penny stock dealing is never so easy without getting enough information. There are easy reminders to keep you in the right track. Some points worth noticing are:

  • Be positive: It is important to see that your stocks are good and it will keep you positive about taking the right decisions. Staying the light with views and staying alert is the key to deal with the risks involved in these stocks.
  • Master the ins and outs: The basic and elementary thing is to be open for learning and it would be your master weapon in dealing with penny stocks. You have to work for it and make the best moves to understand the best penny stocks and consistency is the key to keep awareness of the price changes.get-the-best-penny-stock-deal
  • Consult experts: It is important to take tips and picks from experts, but don’t go for the free suggestions as it might be harmful for the long run. The best penny stocks tomorrow might be in the listing and the paid subscriptions are safer than the freebie newsletters and web links.
  • Prepare yourself well: Your own preparation matters the most for covering the risks. Don’t invest too much and fix your funds to move on the right track. Don’t overinvest as it will make you greedy and you might lose all your bucks.
George Mitchell

Trade penny stocks over the other stocks (Part 1)

Penny Stocks
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn
  • Penny Stocks have huge potential

Penny stocks have higher potential than the other major stocks. Traditional stocks are priced in the right way and have slow variations. However, the penny stocks have variety and variability of prices due to which they are better for day trading. People make huge money out of these stocks within a few days time and it is the reason for some investors to choose these stocks over the others of different categorization.

  • Quick Profit Making

Penny stocks have differences from traditional stocks in the terms of making rapid profits. It can give even 100% return within a few days, which is much higher in terms of the rates of profits made with blue chip stocks. It is fascinating for the investors to achieve best results by trading penny stocks and it will be common to get the high profit rates within a short interval of time. Click here to read more info about Penny Stocks.penny-stocks-today-tag-1

  • Quality Penny Stocks surpass the blue chip stocks

Quality is always important in the world of stocks and especially in the case of penny stocks. There is financial balance to be made while purchasing the stocks and the quality pennies will always give better results than the high quantity pennies. The small caps have proved out to perform extraordinarily and even better than the large cap stocks. It even takes the smallest time to get better scope and positive monetary results.

  • Be the informed investor

The investors having fullest information about the penny stocks can do well in their tasks. You can get the full analysis of the stocks from internet and other sources. It will help in keeping your informed and make the best out of your investment efforts. Getting all the necessary information will increase your chances of making higher money and incremented scope with pennies. Informed investors always get huge success in the stock world.

George Mitchell

Trade penny stocks over the other stocks (Part 1)

penny stock market
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn
  • Best Penny Stock Deals Are mostly underrated

Penny stocks have the price tags slashing or increasing up to -400 to 400% level. There are incredible deals floated for different stocks and you have to figure out the ones having high quality. The aim of investors should be to seek for the stocks having information about the associated companies to make the wise decision. After all, it is the matter of your hard earned money and you can’t just waste it for irrelevantly.

  • Don’t tie up your money for a long time

Investing your money for a very long term is not a good idea for penny stock investors. You can get consistent profits with these stocks within a short span of time and it makes sense to get involved with some of the prominent stocks having no scams involved. You can make incredible long term strategy and strong future of your stocks by reinvesting the portion of these stocks time and again. There are hard times for some companies, but it doesn’t mean that the stock crashes immediately. It is required to keep the right track of your stocks to keep the positive moves of the investment.

trade-penny-stocks-over-the-other-stocks-part-1

  • Don’t trust the sweetest ads

The penny stock frauds are always willing to get people attracted towards their ill stocks. These stocks never get coverage on TV and finance channel, which means that you can’t get the expert views on social platforms about these stocks. It is important to check out your own analysis about these stocks and make use of the pick services giving the most important results. The picks are worth their cost and they require intensive study to give the best results. Your time should be invested to make the most out of your efforts and less greed should be made for the sweetest advertisements through newsletters, free emails or fake forums.

George Mitchell

Penny Stock Trading

Penny Stocks
Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn

When you begin with stock market trading, you might become over attracted to the different approaches and strategies involved in these stocks. Everyone has different concepts with regard to the pennies and it is a big task to put your money to the right stocks. The first trading is always overwhelming but it should be done very carefully as one wrong move might give you negative vibes about the stocks market.

The feeling should be to choose for the best stocks having worth to attract the money, time and efforts of the traders. The low cap stocks are good for beginners, but make sure that these stocks are too risky and volatile that people actually refrain from selling or purchasing them.

Penny stocks are good to begin but it is important to buy the best stocks having high quality. Some people get burdened by pennies as they trade them in the wrong way. Penny stocks are always attractive as you can buy many stocks by investing hundreds of dollars. On the same time, there is a big risk involved in these stocks as one wrong move can lead towards loss of the whole investment.

penny-stock-trading

Small cap stock picks are attractive, but the investors need to make sure that they are doing their own research for every stock to avoid too many losses. Penny stocks are traded for $5 or lesser and it is an easy way to make good money from the market. These stocks are traded on pink sheets or OTCBB. Your focus should be on investing in the most appropriate stocks, which can probably give you best returns.

Professional advice is of course useful for penny stocks, but your personal research matters more than the expert tips. Hot penny stocks can be looked on and analyzed well to make the final decision.