Monday, November 9, 2009

Which Penny Stocks To Watch

By Bo Miller

Most everyone has heard about investors striking it rich in the stock market but most of the public are being left behind due to their lack of knowledge regarding the market. If only we knew which penny stocks to watch but it is a skill that most investors will never have, the ability to pick a winner. However by learning and using a few tricks of the trade anyone can earn huge returns, lets take a look at exactly what is needed to make a profit.

The term "penny stocks" is the name given to any stock that is trading under $5.00 per share. One of the reasons why they are so attractive to investors is the low cost to purchase these shares. You can buy these share for only a few cents each, in fact many of the largest companies today were once penny stock companies like Wal-Mart and Petsmart. Once a company decides to go public and sell its shares to investors it has a great chance to increase its value. This creates a win/win situation for both the company and the investor.

Nearly all of the major corporations climbed their way to the top using the help of investors. All the investors who bought their stock for pennies a share will be very wealthy when the company rises to the top. This all may sound great but how do we know which penny stocks to watch? well there are several ways to find these diamonds in the rough.

One could spend a life time searching for the right investment opportunity, looking through profit reports, charts and graphs, night after night and still pick a loser. However this is how it was done several years ago, for the past 10 years smart investors have developed a new way of picking these winners that is by far more accurate.

Most everyone knows that computers are a very important part of our life. Investors have learned to use computers and technology to predict which stocks to buy and when to buy them. Many of these investors are willing to help those who do not have access to this technology. There are several FREE penny stock newsletters that are available to anyone who wants to learn and make good money trading penny stocks. It is a great way for both the beginners and the experienced investors to get investment ideas. It pretty much takes the work out of knowing which penny stocks to watch. - 23309

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