Posted on 14 August 2012.
Making penny stock picks is difficult. There is a virtual sea of these stocks. Many of them are just names with associated stock values. Figuring out which one to buy seems nearly impossible. This is a particular problem for investors that are accustomed to trading on the regular stock market. These investors are accustomed to spending time researching a select group of stocks in order to determine which one they should buy.
Traders who live off their penny stock picks are often accustomed to making decisions a lot faster. Instead of relying on research into a company’s fundamentals, they focus more on the price performance of a penny stock. Quick analyses of this data motivate them to buy and sell. They try to predict when the stocks will gain value and when they will lose it.
To make penny stock picks in this fast-paced fashion, you will need to start with a penny stock broker. Then you will need to acquire special software that will help you make these analyses of penny stocks. You can often acquire this software through a broker.
However, you can still use some of your trading skills to refine your search. Narrow down the number of potential penny stock picks by looking at the sectors of the economy that are seeing the most volatility at any given time. These sectors will often produce stocks that will make big gains in short periods of time.
Avoid holding on to stocks for too long. At the same time, you do not want to trade too often and lose your profits paying commissions. The key to making your penny stock picks count is knowing when you have reaped the maximum amount of profits from an investment.
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