Penny Stock Investing: An Introductory Guide To Finding The

[nobita]

This article argues that despite their risky nature huge profits can be made from small capitalization stocks. The trick is to find the best underlying small companies and avoid the duds. The criteria for selecting these profitable companies are the same for all boxable stock: through fundamental analysis we assess the company and look at aspects such as the viability of the product, its profitability, resilience and management. Secondly, technical analysis will help us determining when to buy that company's stocks, and in this case we look at graphs such as trendlines, support and resistance, volume etc. A short overview of the sources of information to invest successfully in penny stocks is then offered: the internet offers superb online information such as economic trends, commodity prices, interest rates etc. Newsletters and forums and the latest penny stock programs all add to these sources.