Looking at penny stocks is a great way to make some serious cash in the stock market.
People always say to stay away from penny stocks and that they are just to dangerous.
I believe that there is a huge potential for making money with them.
All you have to do is look at them in the right way.
I am going to go over some different methods I use to watch penny stocks.
They have really benefited me and they will benefit you as well! The first thing I do when looking at penny stocks is try to identify a trend.
A trend is a pattern in the history of a stock price.
You might notice that a stock price shoots up around 30% every 2 or three months.
This gives you insight on when the best time to buy that stock is.
The great thing about these stocks is that there trends are normally in very short time intervals.
So if you find one, you can use it over and over to make a profit! One thing you have to watch out for is big events in a company's business.
For example, if you see a nice trend that you could profit off of, but then you notice that at both of these points the company had a major deal.
Then you should avoid that stock.
You want your trends to come from normal business.
Those trends will always be more reliable.
Penny stocks are not a risky as many say.
Sure, if you are not careful, you could lose a bundle.
You have to realize that that is true for every investing situation