Many people want to get into penny stock trading, but most aren't really sure which ones they should be buying.
It can be daunting when there are so many of these kind of stocks from which to choose from.
How are to supposed to find a winner amongst them? It all begins and ends with research.
If you don't do the research, you've got no one to blame for yourself.
To begin with, find out about the management of the company.
Who is running the show? What's their vision of the company's future? It's much easier to feel safer investing in a company when you know there is a real future behind it.
Take a look at the past quarters of the company.
Have their profits (if they have them) been going up steadily quarter after quarter? Do the different seasons have very different revenues? Does it do better in the summer or in the winter? For example, if you have a company who sells jackets, chances are they are not going to do very well in the summer, but in the winter, business should pick up.
If analysts are talking about the company, find out what they are saying.
As much as I dislike analysts, their opinions do have a short and long term effect on the stock.
Find out if they have beaten previous analyst expectations.
That's a great sign if they have.
If they have a retail outlet somewhere, go check it out, and see how they treat their customers.
All these little things matter.