Defining the Perfect Penny Stocks

The perfect penny stocks remain elusive for many investors. Being able to define what makes a penny stock perfect, however, is the first step to identifying which stocks are ripe for investment. The over the counter market is a volatile place where stocks can rise or fall at the drop of a hat. The perfect OTC stocks, however, all have a number of characteristics in common. For one thing, they are incredibly inexpensive. This is actually a trait that is shared by all penny stocks, since they are, by definition, worth no more than five dollars per share. That said, if you want to make large returns while investing the least amount of money possible, you should look for stocks that are worth less than one dollar per share.

 The perfect penny stocks represent companies or products that are just on the verge of discovery. While their stock is still worth only a few pennies today, it will soon skyrocket in value. The key to smart penny stock investment is to buy stocks just before they take off. If you can pinpoint which companies and products are about to be discovered, you can pinpoint the penny stocks that could soon be worth millions.

  Identifying the Perfect Penny Stocks

Finding the perfect penny stocks may be easier said than done. If you want to identify the stocks that are about to take off, however, you must look at the companies they represent. Try to find a company with solid management and good financial practices. Investing in new companies may pay off more often than investing in old companies that have been trying, and failing, for years. In the end, however, it is impossible to say for sure which stocks will succeed on any market. The search for the perfect penny stocks can be a lifelong challenge, but one that is full of excitement and, if you are lucky, huge returns.