Nov 18, 2011

Posted by in Penny Stock | 0 Comments

Great Penny Stocks To Buy In A Volatile Economy

Finding Great Penny Stocks to buy is a Lesson in Patience

Great Penny Stocks To BuySearching for and finding penny stocks in which to invest takes study and time but finding great penny stocks to buy is a study in how to develop the patience of a Saint. In this endeavor it is important to avoid the hype of micro-cap promotion artists. These PR prodigies spend their time trying to separate you from your hard earned money. However, once you develop the nose for detecting a quality penny stock investment you will be well on your way to finding great penny stocks to buy.

The tools, tactics and rules of investing that guide traditional investing should also guide your investment practices when searching more speculative avenues in order to find that elusive pearl of an investment. These tools include charts that include volume and historical data along with your favorite analyst. Tactics include short selling overly hyped issues, using options when available and tracking rolling stocks. Trading rules may require a bit more discussion as they must be considered inviolate.

Trading Rules for Finding Great Penny Stocks to Buy

The rule which has the greatest impact on all of your investing has to do with understanding the company and the industry sector more than any technical indicator every invented. If you can tell someone about the company you are investing in so that they can say they understand how the company makes money then you successfully understand the company enough to invest in it. If however you do not understand what the product is or how it is used then it is a good bet that this is not the company where you should invest money. Secondly, it is important to find companies that have good management teams in place. Great managers can make a good company great. The final rule for investing is to only invest in companies that are currently making money by selling their product or service.

If you spend the time using the above rules, you can almost eliminate all other forms of research when it comes to searching for good investments. Take each stock that you consider purchasing and treat it as if you are buying the whole company and the existence of your family depends on your decision to make the business work. This will eliminate 95% of all companies and make you focus on what truly matters when searching for great penny stocks to buy.

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