Best Penny stocks – The stock picking tips to unearth the hidden gems
The best penny stocks list is not something that does not come easy and simply because of the fact that penny stocks by nature are very very risky. They do not have the usual listing requirements as far as NYSE or NASDAQ is concerned and that is why the challenge for the screening of the penny stocks is there.
What are penny stocks?
The penny stocks as the name suggests are the stocks that have the price which is in pennies. Well let us not take pennies literally as these stocks at times may have the market price which is more than a dollar. The main thing to note here is that they are traded on the OTCBB (Over the Counter Bulletin Board) and Pink sheets.
These stocks are designated as those which have a price which is less than $5 and also these stocks generally do not have the necessary mandatory listing requirements as required by companies which have good stock prices.
Tips for picking up penny stocks
Risky markets
For people who are trading in the penny stocks segment make sure that you know the basic rules for the penny stock investing
These are risky investments and hence you need to tread very carefully and without proper research the challenge is always twofold. You may miss out a great opportunity as you may not have the best information and on the other hand this will hamper your research. The flip side is also true that you can make good money as there is no information and if you are able to dig out the information then you will have the stocks that can give you returns which will be simply stupendous.
So invest in penny stocks which have substantial volume and are a bit liquid. Make sure that you have penny stocks that have some information provided about them.
As far as possible stick to stocks which have price between .05 and 2 dollars. Yes that may seem high but using this criterion you may avoid the risky bets.
Track your stocks everyday
Each day is a new beginning and you may be able to help yourself out of tricking situations by active monitoring of your penny stocks. This penny stock market is volatile and it does not help that you are not aware of the daily happenings in the OTCBB. Any news can impact your portfolio badly.
Let us see the top penny stocks which were there on Sept 16. These were IPWG, EXPH, NUBL.
Then the great penny stocks that were there on Sept 15 were PMAH, RKLC, HTDS. Each day throws up very different stocks and each of. So, daily trading and monitoring is a must to make money in the stock market.
Promise of returns and risk along with
The penny stocks can provide good returns but the challenge of having no information is always there. The penny stocks in the biotechnology sector are among the most happening and how do you track those? Well check the news about new drug discoveries and FDA filings to know which company is active. This is the trick. The information will not be given to you on a platter. You need to find good sources for that. There are several online penny stock forums and penny stock newsletters that can give you hot and buzzing stocks.
I am not sure if you can trust them or not.
Experiment with some small amounts on the recommendations given out by these pump and dump newsletters and see what happens. Chances are that you may be able to refine your strategy of making money through these. The majority of the times it is the few individuals who send out the letters who will be able to make money. So tread that path with caution.
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