Penny Stock Tips - Picking Penny Stocks
You want to know how to buy cheap stocks, like Pink Sheet penny stocks? I am going to give you some tips on picking penny stocks, how to find penny stocks that will be good penny stocks for 2011.
These are ultra-hazardous investments, speculations only.
There are many scams in these markets.
Small companies are easier to manipulate and they are easy prey for short sellers.
For example, see my video "Anatomy of a REAL Pump and Dump" on YouTube.
These stocks need promotion to move them.
This promotion can move them whether they deserve to go up or not.
Penny Companies Penny company managements usually put the investor first - right after their own wallets.
They may pay themselves big salaries and perks.
They may raise money by using massive dilution.
Dilution is selling stock below its value.
This reduces the value of your stock.
They may dump their own stock on the market.
These companies may also crush your stock value by making ruinous reverse splits.
Management may simply abandon the company.
What to Look For Look first for value by finding companies selling below book value.
This may be impossible if information is missing.
Look for low market capitalizations.
Look for insider buying.
Look for preparations for development, reorganizations If you have found value, then look for possible excitement.
Get out your crystal ball - what will happen? Anticipate and predict.
Call the company to find out more but be careful.
Is the company doing research, coming out with a new product, looking for a deal? How Stocks Move Stocks move in a pattern of accumulation - markup - distribution.
You want to buy when the stock is being accumulated for an up move.
Buy with the smart money.
Avoid chasing price - look for good cheap buys.
Penny stock companies often have huge swings = momentum.
Look at the Chart Look for companies with low market values.
Look for stocks moving sideways in patterns that suggest they are being accumulated.
Watch for breakouts on the upside.
Do not chase price.
I like to put in a low bid for the stock, fishing for a bargain.
If I miss one stock, there is always another behind it.
Do not worry about moves you miss, rather spend your time looking for moves.
Warning - these stocks can turn on a dime.
Do not get carried away by news.
Avoid stocks that are being hyped, such as spam stocks.
When to Sell Sell too soon! Sell at the first sign an uptrend is broken.
Do not ask why.
You will find out six weeks later when the price is down significantly - too late to sell.
Never average down in a penny stock! The fact that the stock is now half of its peak means nothing.
The stock may be headed to zero.
Live to trade another day.
The biggest of the penny stock tips is to keep learning more.
Professional traders stay on top of their game.
They study everything out there.
They know the right information is worth tons of money.
Learn from your mistakes and your profits.
These are ultra-hazardous investments, speculations only.
There are many scams in these markets.
Small companies are easier to manipulate and they are easy prey for short sellers.
For example, see my video "Anatomy of a REAL Pump and Dump" on YouTube.
These stocks need promotion to move them.
This promotion can move them whether they deserve to go up or not.
Penny Companies Penny company managements usually put the investor first - right after their own wallets.
They may pay themselves big salaries and perks.
They may raise money by using massive dilution.
Dilution is selling stock below its value.
This reduces the value of your stock.
They may dump their own stock on the market.
These companies may also crush your stock value by making ruinous reverse splits.
Management may simply abandon the company.
What to Look For Look first for value by finding companies selling below book value.
This may be impossible if information is missing.
Look for low market capitalizations.
Look for insider buying.
Look for preparations for development, reorganizations If you have found value, then look for possible excitement.
Get out your crystal ball - what will happen? Anticipate and predict.
Call the company to find out more but be careful.
Is the company doing research, coming out with a new product, looking for a deal? How Stocks Move Stocks move in a pattern of accumulation - markup - distribution.
You want to buy when the stock is being accumulated for an up move.
Buy with the smart money.
Avoid chasing price - look for good cheap buys.
Penny stock companies often have huge swings = momentum.
Look at the Chart Look for companies with low market values.
Look for stocks moving sideways in patterns that suggest they are being accumulated.
Watch for breakouts on the upside.
Do not chase price.
I like to put in a low bid for the stock, fishing for a bargain.
If I miss one stock, there is always another behind it.
Do not worry about moves you miss, rather spend your time looking for moves.
Warning - these stocks can turn on a dime.
Do not get carried away by news.
Avoid stocks that are being hyped, such as spam stocks.
When to Sell Sell too soon! Sell at the first sign an uptrend is broken.
Do not ask why.
You will find out six weeks later when the price is down significantly - too late to sell.
Never average down in a penny stock! The fact that the stock is now half of its peak means nothing.
The stock may be headed to zero.
Live to trade another day.
The biggest of the penny stock tips is to keep learning more.
Professional traders stay on top of their game.
They study everything out there.
They know the right information is worth tons of money.
Learn from your mistakes and your profits.
