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After months of declining earnings and investor losses, the stock market, it appears, is bouncing back. Investor confidence is higher than it has been in years, and this new found bullish attitude is trickling down from the Blue Chips to the penny stock market. There are a number of industries poised for growth, and investing in the penny stock market helps you get in on the ground floor. If you are an investor looking to invest in micro-cap or penny stocks, there are a number of penny stocks to watch now. Penny stocks, also known as microcap stocks, are stocks that are traded off the major exchanges for significantly less money than traditional stocks. Traded at less than $5.00 a share, these stocks are offered by new companies looking raise capital and expand their reach and influence and companies that have suffered from financial challenges. Penny stocks are traded Over the Counter (OTC) via the use of a bulletin board or what insiders call “the pink sheets”, without the help of a broker. Investors generally use an online trading platform to buy and sell penny stocks. These stocks are less regulated than other stocks, so they can carry both a higher risk and potential for fraud. These stocks also offer investors to see a big return on a small investment. Penny stocks tend to follow, rather than lead stock trends. Simply stated, these stock prices will mirror those of more traditional growth, traditional, and emerging markets. If you are a penny stock investor looking to stay ahead of and on top of the trends, which penny stocks should you watch? • Back end software developers: Tech stocks are rebounding faster than other areas thanks to continuous product innovation. Consumers are always looking for the “next” gadget, phone, tablet, or gaming system. While penny stock investors won’t be investing in Apple or Microsoft anytime soon, they should explore some of the companies designing back end and support technology. These supporting players create data capture technology, software for particular niche markets, like insurance or car dealerships. • Alternative Energy: Analysts expect this area to experience explosive growth over the next year. Wind power, solar power, and clean coal will all play a role in expanding this area. Also look for bargains in biofuel and ethanol manufactures and petroleum refiners and producers. We may be going green, but our cars still require gas to fuel them. • Bottled Beverages: There is money to be made when investing in energy and sports drinks. Leave bottled water and soft drink stock to the traditional investor and seek out smaller, niche companies. There are a number of websites designed to help investors identify penny stocks to watch. These sites and experts analyze the stocks movement in terms of both price and volume and interpret traditional stock research and analysis to create a big picture view of the penny stock market. There are bargains to be found on the penny stock market and potential investors should keep an eye on these growth areas and stocks to watch. Are you looking for more information regarding penny stocks to watch? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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