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Getting good penny stocks requires the investor to explore a number of untraditional resources, spend some time researching and evaluating a company’s financials, and preparing him or herself for a wild ride. Penny stocks, also known as micro-cap stacks, are generally issues by new companies facing liquidity, equity, or profits challenges. Since these stocks are not traded on the major stock exchange, like the New York Stock Exchange or the NASDQ, they are subjected to less rigorous filing, listing, and reporting standards. This requires the investor to take on a bit of research and familiarize him or herself with the ins and outs of the company’s management plan and balance sheets. Most penny stocks are not traded through a traditional brokerage firm. Since they tend to trade at less than $5.00 a share, most penny stock investors open an account with an online brokerage firm. This allows them to find, research, buy, and sell penny stock without paying heft broker fees. Getting good penny stock requires the investor to seek out these stocks using online websites, discussion forums and the “pink sheet” listings. Investors can use these tips to identify some of the day’s weeks, months, and year’s hottest penny stocks. Penny stocks appeal to many investors because of their relatively low price. Investors can purchase a large quantity of stock for a limited capital investment. With good penny stock purchases, even moderate gains can add up. Of course, penny stocks are riskier than more traditional stock purchased. Even modest losses can drain an account quickly, simply because of the sheer volume of stocks purchased. Utilizing stop orders can help put an end to big losses quickly, especially is the investor is investing independently. Penny stock investors need to check their portfolio more often than traditional investors. Most investors turn to websites and online discussion forums for advice about getting good penny stocks. Most of these sites offer recommendations and limited research for a subscription fee. There may be a free limited trial offer, so you can register with the site and track their stock picks to see how accurate they are. Another feature these sites offer is access to some of their top level’s investor’s portfolio. Many sites will share this information with subscribers and encourage them to chat or email with some of their more active and successful customers. As with any stock portfolio, diversification is key for getting good penny stocks. As an investor, you want to spread your money around- in both different companies and different industries. Penny stock investors are not long-term investors, so their investment strategy is not designed to weather the ups and downs of the market. Penny stocks are a great option for investors looking to play a hot tip or trends or with a little extra cash they want to turn into a profit. Getting good penny stocks and playing them appropriately takes some research, some discipline, and some good luck. When you invest in penny stocks, be prepared for a wild and sometimes lucrative ride. Are you looking for more information regarding penny stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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