How To Find The Hottest Penny Stocks

Download How To Find The Hottest Penny Stocks

Post on 17-Aug-2015



Economy & Finance

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  1. 1. How To Find The Hottest Penny StocksWith the large number of stocks traded on the big board exchanges, it isnt difficultto find companies in which to invest. However, when we say penny stock, it isa whole different story. Stocks that do not qualify for the regular exchange areusually listed on the pink sheets; this is where you can find your penny stocks andother stocks that trade for less than $5. You just need to find the hottest stock totrade in order to be profitable, read on to find out how.1. Go directly to the Pink Sheets website. This is where you can find a list of stocksclassified as penny stocks. In the Pink Sheets, brokers can publish bid and askprices with few requirements. Pink Sheets have no requirements regarding marketcapitalization or size. Just Google pink sheets and it will direct you to a website.2. Note the ticker symbol and quote for the stock that interests you. A tickersymbol is a unique symbol that each traded stock has, and your broker will needthis information to know which of the stocks you want to invest in.3. Before you purchase any stock, make sure your broker allows trading in pennystocks. Because of the nature and risk involved in trading penny stocks, very fewbrokers do. If your broker doesnt, then you may ask for a referral.4. Dont put all your eggs in one basket. That is, do not purchase only the stock ofone company. You will never know for sure which stocks will make a profit, and thatis why it is good to diversify. Once you are now confident with your choice, contactyour broker and place the order. Your broker then will need the ticker symbol andthe number of shares you will be purchasing.5. Just stay with the limit order because a regular market order can cost you,especially with penny stocks. Plus, a limit order will allow you to set the price youwant to pay. This will serve as an automatic brake to your risk, especially if you arejust starting out. Newbie investors tend to be hasty with their decisions, and havingan automatic brake will really help control this kind of mistake.Investing in Penny Stocks has its risks, just like regular stocks in the market. Theonly thing that makes them different is that people who have less can invest andmake a profit from this kind of stock. And if they lose it will not be so bad, it onlycost them a penny. If you are short on capital and still want to engage in stockinvesting, you can start with penny stocks. For more information visit our site at: