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My Simple Penny Stock Picking System
By: Sam Chim
Before investing your hard-earned cash into penny stocks, it is important to
research the penny stocks you want to invest in before committing any cash.. You
want to find profitable penny stocks. To do this, you’ll need penny stock leads.
Leads are just names of penny stocks that you are thinking of investing in.
There are many ways to get penny stock leads. For example, searching the
internet (blogs and forums), joining a penny stock mailing list or keeping an
eye out on the news. The main idea is to build a list of around 5 to 10 quality
leads that are worthy of your money.
After you have a list of leads, you’ll want to choose one or two of them. You’ll
need to go through your list and discard stocks which do not meet your criteria.
This process can be tedious but it will be well worth it in the end.
The criteria that I look for include - company history, business plan, opinions
of individuals and experts, financial information, competition, track record of
the board of directors, company reports and broker recommendations. Using the
variables, I can quickly establish whether a particular stock is worth investing
in.
Once my list has been cut down to 1 or 2 stocks, I’ll ask for opinions from
other people to confirm my selections. It is very important to listen to the
views of other investors because, in most cases, they’ll have something valuable
to contribute to your research. Perhaps, you missed out a vital piece of
information which other investors could highlight for you.
Now that I have 1 or 2 stocks out of my original list of 10, I feel confident
that I have done my due diligence and I am ready to invest. I use this process
every time I’m investing in penny stocks and , so far, it has been simple but
profitable.
About the Author:
Sam Chim an experienced Penny Stock investor. If you would like to learn more
about Penny Stocks, the author's site is available at: Free Penny Stocks Advice
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