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Read About The Best Penny Shares To Buy This Year
Finding the most likely penny stocks and shares to buy is the issue any potential investor must face up to.
Be you a beginner or a seasoned trader, the first place to go will be Google. Check out Google.co.uk/finance, and here all, or nearly everything will be laid out before you and in a reasonably simple format.
Examine particularly all the assorted sectors, and their summary. This shows you which sectors are performing well, and which are less successful.
Look at any one area, like Energy, and see how well it has performed against the FTSE.
You can see all the firms under that heading listed by their quotes, and all are listed as penny stocks so you can get down to shares which will literally sell for 1p.
Check out stats, and go to the website of the company.
Realise that this gives you a start before you carry out your research.
Do not trade whatever you do prior to doing your research.
There are perils to stay away from as the next part of the article will show
What are the the best penny shares is a question people thinking of investing regularly want to know?
The reality is there is no one correct answer, but perhaps to try to help you understand the principles behind what certainly are not the Best Penny Shares to purchase.
There are two precise areas novices must stay away from or be extremely watchful and aware of.
Firstly the Pump and Dump Penny Stocks
Please understand that not everyone who buys and sells penny stocks is truthful. In fact some of the penny stocks dealing is downright dishonest. The cost of stocks get literally talked up,or hyped. The people involved buy a lot of shares at rock bottom prices, giving an aura of activity. Prices rise dramatically and quite suddenly. You will see the improvement catch the sensation that you are missing the boat, and buy too late after the price has risen unsupportably. Indeed you may probably be buying stock from someone who started the scam, because that is possibly what it is. They acquired at the bottom and are now making their profit, sadly from you.
Secondly price spikes in penny stocks in the aftermath of Good Reports.
You may think a good report about a penny stock company makes them the best penny stocks to buy. But sadly this might not always be the case.
Again you may very well read about a rare metal discovery and by that time the penny shares will have risen like a spike. They’ll fall again when the discovery isn’t all that it seems, and then rise again after the subsequent report. You need to know where these reports originate, are they independent, or internal to the company. Some research will expose this, and you should also be capable of finding out how often these reports are produced and perhaps anticpate their discoveries so you buy at the bottom. Otherwise if you’re holding these shares sell them after the report becomes public.
Penny Stocks to Buy Now