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Identifying the top penny stocks requires the investor to put in a little effort, conduct some research, and have confidence in his or her ability to understand market trends. Penny stocks, the “street” name for microcap stocks, are stocks traded through off the major exchange for significantly less money than traditional stocks. Penny stocks generally trade at less than $5.00 a share and at a lower volume than other stocks. Since these stocks are traded “over the counter”, most investors buy and sell them without a broker. This requires investors to do some research on each company and determine his or her level and tolerance for risk. The top penny stocks are a bargain for investors willing to work within an inherently risky market for the promise of a big payday. There are plenty of websites are dedicated to researching and analyzing penny stocks. These analysts pay close attention to a company’s liquidity, debt ratio, equity, and assets, the same criteria analysts use to pick more traditional and Blue Chip stocks. Penny and pink sheet stocks are not subjected to the same rigorous filing and listing requirements as stocks trades on the major exchanges. This makes finding good research on them difficult. Recently, Websites like Google Finance, Yahoo Finance, and Bloomberg, have added more in depth coverage of the top penny stocks. Many websites focused on in top penny stocks offer investors access to their chat rooms and discussion forums. This gives a potential investor an opportunity to hear about the successes and challenges of other investors. These sites often require investors to pay a small monthly or yearly subscription fee to get access to the sites recommendations and chat functions. Many analysts are recommending penny stocks that are poised for big growth over the next few months. Gaming systems, social media support, beverage companies, and power and natural gas companies, and mid-price clothing designers are expected to make gains over the quarter. For investors looking for the top penny stocks, they should follow some national and regional trends and keep an eye on companies looking to make big moves. Finding the hot penny stocks are only the first part of the equation. Penny stock traders must have a disciplined approach to buying and selling these volatile stocks. Since penny stock investors are generally not using a broker, they must stay on top of their picks and monitor their portfolio’s activity. Penny stocks can gain and lose value much quicker than more traditional stocks, and because the investor is buying in column, these swings can make or break the portfolio in a matter of hours. Investing in penny stocks, even the top penny stock picks, is not for every investor. To be successful in the penny stock market, an investor need to have a high tolerance for risk and volatility. As with any investment opportunity, it is important to understand the risk involved and prepare accordingly. Good, independent research, expert analysis, and your own common sense and intuition can go a long way in making your top penny stock investments profitable. Are you looking for more information regarding top penny stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!
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