Before talking about penny stocks, do you know what stocks are? Shares are securities that show the ownership part of a company. Buying shares means you already have holding rights to the company. Therefore, you are entitled to company profits in the form of dividends, at the end of the company’s accounting period. One of the main benefits of the stock is that it can be used as an investment instrument, both short and long term. Kind of having many types, one of which is penny stock. Penny shares are stocks, which prices do not exceed 5 USD per share, and are usually used for trading with high speculative rate. Penny shares are generally owned by small companies that have not been able to gain a reputation in the market, so securities transactions in companies like this carry a high level of risk for investors. Here are tips for finding the best penny stock picks.
Avoid low-quality markets
There are many stock markets where penny stocks can be traded. However, this exchange is certainly not all created equal. Keeping to a “good environment” is one of the most effective methods to avoid the risk of stocks at low prices, while dramatically increasing your potential for success. Thinking that penny stocks are shares that trade less than $ 5, there are many penny stocks on many major exchanges (such as the NYSE, American Stock Exchange, and NASDAQ). There are even a few that trade less than one dollar but still, trade in this “big council” market. If you’ve already invested in that place, you must aware because that place is penny stocks to watch.
Avoid free stock options
There are other reasons why choosing free stock, whether on a message board, or in a conventional newspaper, or an online “sign-up-free” bulletin. Sometimes this only involves one individual who buys penny stocks and tries to expand the value of their investment. However, in most cases, companies pay a lot of people or services to tell the world about their business. It is not uncommon to have small, public penny shares to pay six-figure amounts to get the right type of exposure – the right type of exposure means the type that produces shares get a ride, so they can issue more shares at a better price, and collect money more easily. Always remember, free stock-taking only exists because of personal interests behind the company, or promoter, or scam artist. Be careful with undercover advertisements. This method is very important for the best penny stock picks
Trade Paper (as explained here) until you consistently show the profits of the penny stocks that “you want” to trade. Then you can be more confident when you make the jump to real money. Now, if you will lose your trade, at least you will not lose money in real life, and ideally, you learn some things that you might do wrong.
There must be a 100% Special Guarantee
Don’t rely on any site that can’t point to a 100% Quality Guarantee. Regardless of what they call it, you just want to trust a website or service that ensures your best interests are ahead and in the middle! They must commit to everyone that they will not trade the shares they tell their customers, and certainly not just touting their investment.
Using technical analysis tools
Many interesting and simple online tools can be used to improve your trading results, such as the Relative Strength Index (RSI). This is just one example of several possible technical analysis (TA) options, and you need to find and decide which is most suitable for you (even though you want to use technical analysis at all, which you might not want). You might need Paper Trade to find out the best TA tools for you and your strategy for best penny stocks picks.