Alright, so you have a appreciation on what penny breed are and you have concluded that the penny stock market is right for you. You may be wondering where to get started, how to find penny stocks, and how to buy penny stocks. This is the crafty function because a lack of research, and purchasing besides cursorily can lead to dearly-won mistakes and losses .
To Find Penny Stocks:
Finding the right penny stocks difficult. Taking the time to research penny stock lists and assemble information on individual companies will importantly increase the odds of success. Purchasing a penny stock because your colleague who heard person raving about it on the bus recommended it, is strongly discouraged .
so, now you ‘re wondering how to research penny stocks and where to buy penny stocks.
There are many websites that will offer lists of excellent penny stock investments. This is where it is important to proceed with circumspection and be able to differentiate between legitimate penny stocks and those that are victims of pump and dump schemes ( see list below for tips on how to avoid stock victimize ). Finding a web site that lists penny stocks is merely a begin point. A good place to start is Wall Street Survivor ‘s Investing Ideas page which lists versatile penny stocks. Another choice is to use MSN ‘s Stock Screener which allows you to filter stocks based on coveted criteria like price per share. But it ‘s besides authoritative to know how to find dear penny stocks. After going through respective lists online, make sure to research each company individually. You can evaluate companies using a fundamental analysis approach or a technical analysis border on, the latter being more coarse for penny stocks .
5 Tips To Avoid Stock Scams
The pump and dump and other livestock scams are some of the most common internet fraud. An inform investor is able to spot these scams and cut electric potential significant losses .
here ‘s 5 tips how to avoid those scams :
Consider it a scam until you can prove otherwise
If you come across a penny breed recommendation ( or any stock for that matter ) count for the source of the report. This advice may well come from insiders of the company or paid promoters who stand to profit from your barter .
Investigate the company
cautiously read their fiscal statements, the prospectus and any early information you can get your hands on. Although some data may be hard to come by, the more you gather the better .
Look for the exchange
While some penny stocks may be found on the major exchanges such as the Nasdaq and NYSE, they often do not meet their list requirements. rather they can be found on nonprescription bulletin boards and pink sheets which by and large involved increased risk and exposure to price handling .
Verify their claims
Penny stock certificate promoters will frequently claim that the company is about to release the next big drug pending FDA approval or has access to a gold mind that once excavated will increase the company ‘s earnings exponentially. The claims are much the bait to get you to buy, make certain that you can find supplementary information that backs these claims from legitimate sources .
Always be skeptical
There is no means to get rich quick. If it sounds to good to be true, it credibly is. If you see a party claiming that they can teach you how to find penny stocks before they explode, do some dig.
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