A penny stock is also known as a micro cap equity and is normally a share traded for less than $5.00. Many new investors are drawn to the lure of this stocks due to the fact that they can be traded with a small initial investment and the potential of large gains is possible. This stocks can rise by over 100% in a few hours and become a red hot stock if good news is expected. Penny-stocks also appeal to those that enjoy day trading due to the fact that their share price is volatile and moves very quickly.
Penny stocks are traded on stock exchanges all over the world including the US and London. Many large companies once started out as P stocks, Apple Inc. and Ford Motor Company used to trade for less than $5 a share.
This page will direct you to places that can provide you with stock tips to help you in your quest to find a red hot penny stock.
Where to find penny stock tips-
It can be difficult to find penny stock tips and own a red hot share, but it is not impossible. Here are a few ways you can find stock tips to help you find a red hot penny stock.
Company websites- Individual websites probably provide some of the best clues as to whether a stock is going to turn into a red hot stock or not. It is a good idea to read quarter reports and see if the company is making any money or not. I would also suggest investigating whether a company is in debt or has solid plans for expanding. If they are trying to expand then this suggests that the company is doing well.
Websites & News channels-There are numerous websites and blogs all over the internet advising on what stock to buy and which ones are going to be the next red hot stock. News channels such as CNN frequently report on stock market news and Stock Tips may help investors may informed decisions as which stock to buy next.
Financial Papers- such as The Financial Times in the UK provide pages upon pages of information on various different companies as well as companies to watch.
Sunday Newspapers- frequently highlight stock tips, the trouble being that the stocks have already started rising in price and therefore may be at their peak so its too late to make money from them. Most newspapers actually have a small section dedicated to stocks, but here again the tips in the papers are normally one day behind. However in some cases stocks share price rises over the course of days and weeks, providing you with an opportunity to purchase that red hot penny stock before it is too late.
On forums- such as LSE.uk , for people trading penny stocks in the UK. However investors must be wary of forum posts as many other investors ramp shares. These results in newbie investors taking risks on stocks they know nothing about to try and make a quick buck.
If you are interested in getting involved or dipping your toe into the stock market and want to start with a small investment – Click here