Buying Penny Stocks on the Nasdaq
Looking for Penny Stocks to Buy? The stock market can be a tricky proposition, indeed. With all the wild fluctuations in penny stocks over the last year, I have learned my lessons. Yes, there are risks taken in trading stocks of any kind. However, I’ve found great success over the years using the same method.
First, I try to learn as much as I can about the company. I read news releases and reports and listen to company statements. I’ll do this in both the Nasdaq and the OTCBB. I try to understand what their business plans are, how they will be affected by government regulations, what competitors they have, and how they will compete with other small companies. Then, I’ll make my buying decisions.
I now look at every penny stock as an opportunity. There are always things that can change the outlook of a company. Some companies will prosper because of government regulations, new products, or new business opportunities. Others will fail because of these factors. That’s why I don’t like buying individual stocks.
Another method I use is technical analysis. I take price action and use it to predict exactly how a stock will perform. I want to know what is happening with the company. I want to know what shares are moving up, and down. I want to know when a particular security is going to make a move and when it won’t.
That’s the beauty of technical analysis. I can look at all kinds of factors, and not just the price. It helps me make educated buying decisions, without having to rely on just indicators.
So, when looking for penny stocks to buy, don’t just look at the price. Pay attention to the fundamentals. If a company has strong financials, then they are more likely to survive. Companies that have strong balance sheets also have more potential. You’ll find excellent companies with great management teams working hard to build long term value.
Here’s another important thing to remember: quality makes a difference. Don’t be fooled by low prices. You need to think about how well a company is run, and what kind of business plans they have. The best penny stocks come from established, successful companies that have the wherewithal to grow. Low prices may make you think they’re worth a quick purchase, but you should be careful.
The best place to find penny stocks is the NASDAQ. Here you’ll find plenty of start up companies who could be on the verge of something spectacular. Watch their stock moves up or down. You’ll know if you’re buying something.
Now here’s the last bit of advice. Remember, you don’t always have to make a huge investment to get in. You can get involved in some really simple trades and really see results if you’re patient.