How do you pick Penny Stocks to invest in when there are thousands to choose from?
I mean, let’s say you’re really serious about investing and want to invest in a penny stock or two among other stocks. How would you choose them among the numerous options without reading every single prospectus or set of financial statements out there? Thanks
Penny Stock comes under Higher risk and Higher return category of Stocks. Penny stocks attracts a lot traders due to their ability for higher investment gains,but because of their highly volatile nature and most unpredictable form of investment in the stock market.
Still if you are sure to invest in them you must know:
1) There are various companies which usually have no track record of solid financial performance due to which penny stocks can get manipulated.So have a look on that.
2)You must know which Penny stocks you have to keep away
a)stay away from companies that reflect negative EPS or earnings per share.
b)stay away from penny stocks whose average daily volume of is very less.
c)Have a look on the stock technicals, it should be in an uptrend and above support levels.
d)In addition, always check and read news concerning stocks.
How To Pick Penny Stocks – How To Pick Penny Stocks Online