Lists all of the journal entries for the day.
Mon, 2 May 2011
Penny
stocks have gained popularity because of their potential to
increase valuation in a dramatically short amount of time -
sometimes in less than a day. Investing in an established
company generally requires a long term investment strategy.
Penny stock investors are often keen on day trading, or short
term investment because of penny stocks potential to quickly
double or triple in value. Penny stocks are cheap, generally
costing less than 3 dollars a share, making them appealing to
people who would like to invest in the stock market but don't
have a lot of money to start with. One thing to keep in mind
when investing in the
penny stock
market is that each investment requires adequate research.
Cheap stocks can make investors rich, but because of their
dramatic spikes and dips it is crucial to buy and sell at the
right time.
Choosing
a stock is a tricky process, there's no magic formula that
unlocks the mystery of which stocks are about to sky rocket and
which ones are on their way down. All stock market investments
come with risks. So what should you look for when choosing your
investments? Always look at the bigger picture. Is the company
in an industry that will be viable in the coming years, or is
it part of a dying sector? What is the company's competitive
edge? Do they already have a loyal customer base, or are they
just emerging onto the market? Do they have a financial
history? Always check out their debt to profit ratio.
Free
penny stock picks are useful because they narrow the focus
of your research by finding interesting penny stock companies
for you. Just remember it is always up to the investor to make
the best decision for his or her personal portfolio, budget,
and comfort level.
If
you're new to trading cheap stocks, it's advisable to start
with one or two companies to watch. It is generally recommended
to add variety to your portfolio, not relying solely on penny
stocks as your main source of investment. However, for those
willing to do the research,
hot
penny stocks can return huge gains in a short amount of
time. There are different strategies to choose from. Day
trading is a term used for short term investments. Day trading
requires constant stock market observance so that a stock is
bought and sold at prime times. Long term investments require a
lot of research before sinking a lot of money into a company.
Each investor also needs to know their limits and have an exit
plan. If you do your research and make smart investment
decisions
penny stocks can
return huge profits - even in a bad market.
