Oct 16, 2011

Posted by in Penny Stock | 0 Comments

Find The Best Penny Stock Picks Without Quitting Your Job

Why you have to do things differently to find the best penny stock picks

Penny Stock PicksFinding good penny stock picks is obviously important if you want to make a lot of money in this field. The truth is simple-finding good penny stocks is not easy. The reason is simple-most of these companies are not going to make it for very long. Therefore, finding a good long term investment is challenging. But when you follow some simple rules, you will actually be surprised at how much opportunity there is here.

First of all, avoid mass media tips. There are newsletters you can sign up for that will give you the top stocks to buy, and naturally everyone rushes to sign up for these. You pay them a monthly fee, and they in turn send you stock picks that they think will make money.

The problem with these “penny stock picks” newsletters is that many people are on the company’s mailing lists. In other words, when they make a recommendation, everyone rushes to buy that stock. By the time you do, the price could already have gone up significantly, and your chances of making money are diminished greatly. Unless you happen to be the first one to see that edition of the newsletter, this strategy is really not worthwhile.

Just the same, avoid companies that are being talked up by the experts for the same reason-the market is saturated. The more attention a company is getting, the more their price will get driven up, and the less opportunity there will be. More often than not, you will get in after the price has already maxed out, and right before the big rush to sell occurs.

You have to be unique when looking for the best penny stock picks.

If you want to find the best penny stock picks than you have to do something different than everyone else. One thing you might want to do is to consider using investing software. There are automated robots that make trades for you, and they are very much similar to those wildly popular forex robots you have probably seen online. These are definitely less prevalent in the penny stock world, but they still exist and you can find them if you look hard enough.

Basically, these pieces of software analyze the entire market based on set criteria they use. Usually their methodology is based on the software creator’s strategy for finding profitable investments for themselves. When it finds stock that meets that criteria, it then buys it.

These pieces of software do work. Just do not expect to get very rich with them. Sure, you will hear stories of people who make a 300% ROI within their first few days. But long term, your gains will be minimal, albeit still more than if you were to do nothing. But if you have a full time job and do not have the time or energy needed to devote to finding good penny stock picks, then using a robot is definitely something to consider.

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