How To Find Penny Stocks

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Post on 17-Aug-2015



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<ol><li> 1. How To Find Penny StocksThe term penny stocks was used historically to refer to stocks that traded for lessthan a dollar, however the SEC (Securities And Exchange Commission) revised thedefinition and included shares that trade below $5. How great is that? So, you maybe wondering How do I trade penny stocks? Here are a few important steps abouthow to trade penny stocks, just read on and find out how easy it is.When you are not willing to gamble your hard earned money or do not have muchto spare, investing in penny stocks is the right choice for you. The turnaround timefor these investments is very quick, and you can monitor the days biggest winnersand losers easily. Follow these steps for a successful investment.1. Go online and observe which stocks are most active and biggest gainers onthe NASDAQ, AMEX, or NYSE. Look for stocks that are trading around the $1.00range.2. Dig in and look for companies that trade penny stocks which interest you. Clickon the stock symbol to view the charts or go directly to the companies website.3. When trading penny stocks it is wise to trade online by creating an account withan online brokerage firm, because they are less expensive compared with localbrokers. Also, there are some companies that offer direct purchase options. Makeuse of these options because it can help you avoid brokerage fees. To do this,you have to go to the companys website and printout the stock purchase form orask for it to be mailed to you. Study the requirements, especially the minimumpurchase, fill it out and attach your payment using a certified check then mail itback to the company.4. It is advised that when trading in penny stocks, to purchase stocks from severalcompanies. Never put all your eggs in one basket, as they say. You will never knowfor sure which of these companies will succeed.Investing in penny stocks is both fun and exciting, but always remember there arerisks involved. Investing in stocks is like gambling; you can never be sure if youare going to lose or win, so do not risk more that you are willing to lose. As statedabove, penny stocks are stocks that trade for less than $5 per share, they are alsoreferred to as micro cap stocks.Keep in mind that these penny stocks are from companies that have just startedor companies that have been hit by bad times; including but not limited tobankruptcy or product recall. Even big companies can become penny stocks or mayhave started as such. If you invest in these NASDAQ penny stocks and watch thecompany grow, then huge profits are yours for the taking.</li></ol>