Ever heard someone going on about how their friend was able to find hot penny stock picks and make themselves rich over night? Many of these stories are just that - stories. There are, however, ways that you can make yourself a very nice sum of money if you can find hot penny stock picks and use them in a way that lowers your risk. This article will reveal what you can do.
The SEC has defined a penny stock as one whose share price is less than $5. Many of these stocks trade on the Over-The-Counter market or OTC, as it is known. You will also find many on the NASDAQ exchange but few, if any, are listed on the NYSE or AMEX exchanges. When you find hot penny stock picks, you will need to know that the OTC market is largely unregulated and can be more risky.
As you ponder this investment option, keep in mind that many experts recommended starting out with only ten percent of your entire portfolio devoted to this endeavor. As you go about trying to find hot penny stock picks, also be aware that they do carry a greater amount of risk due to the the higher reward potential. It is very important that you mitigate this risk by only reserving a part of your entire investment portfolio for these.
The single most import thing you need to do when you find hot penny stock picks is to also do your own research. Some investors get lucky and hit a homerun with their first penny stock but that is very unusual. You need to make sure you undertsand the company and need to confirm that it is investment-worthy yourself. This will help ensure that you are able to find hot penny stock picks and then have a good chance of making lots of money with them.
The next thing you will need to do is to find a broker that will allow you to buy shares. If you can find hot penny stock picks and then can't buy the shares, all your work will be wasted. Many online brokers offer this feature and also have very cheap commisssions to buy the shares. Remember that once you find hot penny stock picks your broker may need to give you access to stocks that are priced below $1. Some brokers do not offer this so find out before you sign up.
As you find hot penny stock picks and do your due diligence, be sure you check out all aspects of the business. Management should have a good track record as well as plans to take the company forward. You will also want to make sure that the industry the business is in is doing well. If you can find hot penny stock picks that are listed on the NASDAQ, you may find that more information is available due to the regulations in place on the exchange.
If you can find hot penny stock picks and do good research, you will have a very good chance of making huge profits. Lots of people have made themselves rich by doing this but it is because they did it the right way and managed their risk.
One other thing to consider to find hot penny stock picks is to subscribe to a newsletter. There are a few very good ones that specialize in penny stocks and offer great picks every week or month.
The SEC has defined a penny stock as one whose share price is less than $5. Many of these stocks trade on the Over-The-Counter market or OTC, as it is known. You will also find many on the NASDAQ exchange but few, if any, are listed on the NYSE or AMEX exchanges. When you find hot penny stock picks, you will need to know that the OTC market is largely unregulated and can be more risky.
As you ponder this investment option, keep in mind that many experts recommended starting out with only ten percent of your entire portfolio devoted to this endeavor. As you go about trying to find hot penny stock picks, also be aware that they do carry a greater amount of risk due to the the higher reward potential. It is very important that you mitigate this risk by only reserving a part of your entire investment portfolio for these.
The single most import thing you need to do when you find hot penny stock picks is to also do your own research. Some investors get lucky and hit a homerun with their first penny stock but that is very unusual. You need to make sure you undertsand the company and need to confirm that it is investment-worthy yourself. This will help ensure that you are able to find hot penny stock picks and then have a good chance of making lots of money with them.
The next thing you will need to do is to find a broker that will allow you to buy shares. If you can find hot penny stock picks and then can't buy the shares, all your work will be wasted. Many online brokers offer this feature and also have very cheap commisssions to buy the shares. Remember that once you find hot penny stock picks your broker may need to give you access to stocks that are priced below $1. Some brokers do not offer this so find out before you sign up.
As you find hot penny stock picks and do your due diligence, be sure you check out all aspects of the business. Management should have a good track record as well as plans to take the company forward. You will also want to make sure that the industry the business is in is doing well. If you can find hot penny stock picks that are listed on the NASDAQ, you may find that more information is available due to the regulations in place on the exchange.
If you can find hot penny stock picks and do good research, you will have a very good chance of making huge profits. Lots of people have made themselves rich by doing this but it is because they did it the right way and managed their risk.
One other thing to consider to find hot penny stock picks is to subscribe to a newsletter. There are a few very good ones that specialize in penny stocks and offer great picks every week or month.
About the Author:
Eric absolutely loves penny stocks and writes about them regularly. You can make MASSIVE amounts of money with hot penny stocks now.
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