Financial
news network while dealing with stock markets, tend to focus more on traded
stocks of leading exchanges like NASDQ, New York Stock Exchange, Japanese
Nikkei and others. For many seasoned investors, trading with such conventional
stocks is not a good option. This is mainly because these stocks come with a
heavy brokerage fee and a long time is needed to see some profit. Such
investors are more interested to buy penny stocks
which though comes with bigger risks, are capable of giving fast and high
returns. As the hot penny stock market is not covered by the general financial
media, investors end up picking best stocks on their own.
Look
for third tier businesses
Following
national stock trends is an effective way of identifying promising penny
stocks. According to expert suggestion, it is a good decision to spend on
stocks offered by second or third tier businesses, companies that show some
equity, debt challenge and liquidity and start ups. Such organization will have
an urge to scale up the ladder competing with conventional blue chip companies.
So, instead of looking for best penny stocks today offered by Starbucks, search
for the same offered by some regional coffee shop.
Identify
hot stocks online
There are
ample numbers of online platforms who will help you to identify hot penny
stocks. These websites offer daily, weekly as well as monthly trading picks.
Sometimes, opportunities are provided for investors to discuss with seasoned
stock holders through email, discussion forums or live chats. Such initiatives
are mainly for first time buyers who often fail to make proper selection.
Charts with graphical representation of success stories are also there to show
you the proper path.
One
important issue that a first time buyer needs to keep in mind is that penny stocks
do not fall under traditional regulatory standards. As a result finding
detailed information about a company’s liability, assets, debt and profit is a
challenging task. So, it is advised to do your own research in order to spot
the best penny stocks to buy.