Start Your Investing With Penny Stock Prophet Picks
Penny stocks are a good way to get started in the stock market.
Not everyone has hundreds of thousands of dollars to invest with, so as the name implies, these stocks are cheap and individual shares cost at the most only a few dollars.
They can increase by several hundred percent very quickly, which allows you to buy a more established, even Blue Chip company's stock with your profits.
When a small company decides to "go public" it has the chance to increase its value, and yours as well.
The successful stories of Microsoft and Walmart entice many people to make an investment that is based on nothing but hope.
Many times company expectations are not met, and penny stock buyers find themselves losing their investment.
Since this is an area of investing that comes with extreme potential as well as high risk, it is very important that the picks you make do well.
Your choices will be the major difference between overnight losses and explosive gains.
Even the most closely analyzed pick does not guarantee a success, but if you take certain precautions when choosing your penny stocks, you can definitely minimize the overall risk.
Go with "listed" stocks because they are much safer.
Listed stocks give you more security because they had to meet certain financial criteria before the major exchanges listed them.
NASDAQ and the New York Stock Exchange have an extensive database of stocks below $5.
Look for stocks that come from emerging industries.
You can find these in all major financial journals and magazines such as 'Fortune' and 'Forbes.
' Last year, in 2009, the top 500 industries listed by Fortune showed its best stocks centered around the petroleum industry, with bio-techs up and coming.
Use newsletters.
They're a great way to find promising stocks without having to sort through pages of information.
Look at what the financial experts recommend.
Be sure to check out your source's trade portfolio before deciding to trust them.
Watch out for bias.
Some websites are paid by companies to promote certain penny stocks.
Bias is quite easy to detect if you run a quick background check on the penny stocks advised.
Yahoo! Finance is a hassle-free way of running such checks.
If you want to be successful, do a lot of research, and keep in mind that penny stocks don't always double or triple, sometimes they dive, so don't feel cheated if your investment dips.
This is an investment option where there is high potential, and also high risk.
Not everyone has hundreds of thousands of dollars to invest with, so as the name implies, these stocks are cheap and individual shares cost at the most only a few dollars.
They can increase by several hundred percent very quickly, which allows you to buy a more established, even Blue Chip company's stock with your profits.
When a small company decides to "go public" it has the chance to increase its value, and yours as well.
The successful stories of Microsoft and Walmart entice many people to make an investment that is based on nothing but hope.
Many times company expectations are not met, and penny stock buyers find themselves losing their investment.
Since this is an area of investing that comes with extreme potential as well as high risk, it is very important that the picks you make do well.
Your choices will be the major difference between overnight losses and explosive gains.
Even the most closely analyzed pick does not guarantee a success, but if you take certain precautions when choosing your penny stocks, you can definitely minimize the overall risk.
Go with "listed" stocks because they are much safer.
Listed stocks give you more security because they had to meet certain financial criteria before the major exchanges listed them.
NASDAQ and the New York Stock Exchange have an extensive database of stocks below $5.
Look for stocks that come from emerging industries.
You can find these in all major financial journals and magazines such as 'Fortune' and 'Forbes.
' Last year, in 2009, the top 500 industries listed by Fortune showed its best stocks centered around the petroleum industry, with bio-techs up and coming.
Use newsletters.
They're a great way to find promising stocks without having to sort through pages of information.
Look at what the financial experts recommend.
Be sure to check out your source's trade portfolio before deciding to trust them.
Watch out for bias.
Some websites are paid by companies to promote certain penny stocks.
Bias is quite easy to detect if you run a quick background check on the penny stocks advised.
Yahoo! Finance is a hassle-free way of running such checks.
If you want to be successful, do a lot of research, and keep in mind that penny stocks don't always double or triple, sometimes they dive, so don't feel cheated if your investment dips.
This is an investment option where there is high potential, and also high risk.
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