Thursday, 7 July 2011

Penny Stock Tips

Investing good penny stocks can be very helpful in adding profit in case you are tired of the holding and hoping routine and you feel the need of turning the penny as an additional to your account. A penny stock is also known as a micro cap equity and is normally a share traded for less than $5.00. Many new investors are drawn to the lure of penny stocks due to the fact that they can be traded with a small initial investment and the potential of large gains is possible. Penny stocks can rise by over 100% in a few hours and become a red hot penny stock if good news is expected. Penny stocks also appeal to those that enjoy day trading due to the fact that their share price is volatile and moves very quickly.

It can be difficult to find penny stock tips and own a red hot penny share, but it is not impossible. Here are a few ways you can find penny stock tips to help you find a red hot penny stock.

1. Company websites- Individual websites probably provide some of the best clues as to whether a penny stock is going to turn into a red hot penny stock or not.  It is a good idea to read quarter reports and see if the company is making any money or not.

2. Websites &  News channels- There are numerous websites and blogs all over the internet advising on what penny stock to buy and which ones are going to be the next red hot penny stock. News channels such as CNN frequently report on stock market news and Stock Tips may help investors may informed decisions as which stock to buy next.

3. Financial Papers- such as The Financial Times in the UK provide pages upon pages of information on various different companies as well as companies to watch.

4. On forums- such as LSE dot uk, for people trading penny stocks in the UK. However investors must be wary of forum posts as many other investors ramp shares. These results in newbie investors taking risks on stocks they know nothing about to try and make a quick buck.

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