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Which Penny Stocks to Buy: 4 Winning Indicators

August 19, 2011

Which Penny Stocks to Buy - PennyStocksCapitalist.comIf you’re like many stock investors, deciding which penny stocks to buy consumes a large portion of your time and may even prevent you from investing at all. I think many simply walk away from investing in general because they can’t make a decision.

With this in mind, I want to present you with 4 winning indicators for penny stocks that I look for before doing any penny stock trading. This isn’t some guaranteed winning stock pick checklist by any stretch. Instead, it’s a way of filtering out all the junk and stocks that really aren’t viable options. You’ll still be left with decisions to make, but those investment decisions should be far easier.

Let’s jump right into it. Read more

Penny Stock Trading – Fastest Way to Millions in the Stock Market?

October 13, 2009

Penny Stock Trading - Penny Stocks CapitalistThere’s a lot of debate as to what is the fastest path to making millions in the stock market. If you’re starting with just a little capital, penny stock trading can certain pay huge rewards.

Penny Stock Trading

What exactly is penny stock trading though? Actually, if you buy a stock with the intent to sell it in a short period of time (minutes, day, weeks, couple months, etc), you’re basically a penny stocks trader. Conversely, a penny stock investor is typically someone who will buy stocks in a company and let them sit there for a longer period of time—usually many months, sometimes years. Investing has its merits, but I still believe penny stock trading reigns supreme because you can greatly limit your capital risk by having limited exposure and you can grow your capital by taking advantage of stock volatility.

I’ve made big returns on trading penny stocks quickly and I’ve had others that were simmering for months before they bubbled up. In reality, your best chance for success is to be flexible. What’s great is you can sit back and buy penny stocks online all trading day long.

Penny Stock Trading Success

Perhaps a better question is simply about the profitability of penny stock trading in general. After all, the real goal to wealth building is to find a vehicle that makes a profit and then improve or replicate that vehicle. While grand slams are great, most wealth is built through a constant barrage of profitable singles (if I can steal some baseball terminology).

I think researching penny stocks is more vital than anything else. Many stock traders just look for charts and technical items, but if you look at penny stocks that experience 100%, 500%, 1,000% and more growth, it was because of the company and not because the stock hit some technical indicator.

In other articles, we’ll talk more about penny stock trading and about things to look for. One idea is to look at the big companies and see who they are dealing with and what they are dealing in. That’s how I identified one penny stock that yielded me 1,000% profit when I dumped it. Penny stock trading works.

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