The Goal of Investing is Often to Find the Penny Stock That Made it Big
The dream of many traders is to invest in one of the penny stocks that made it big. These are the stocks that require a low buy-in, but somehow manage to grow exponentially over time. Finding these stocks before they grow is often the goal of many investors, but the likelihood of doing so often seems depressingly small. There are ways to tell if a stock is posed to make a large jump, though, and a smart investor can learn to watch for such cues.
Penny Stocks that Made it Big Have Many Things in Common
Those few penny stocks that made it big often do so due to a few basic factors. Perhaps the most important of these factors is potential. Some penny stocks are at the penny level due to poor past performance, but many stocks that will later grow in value are there simply because the potential of the stock has not yet been discovered.
Another factor that tends to unite these penny stocks that made it big is an event that might best be called an “explosive moment”. These moments usually include the announcement of an incredibly profitable quarter or a major discovery. In the space of a few hours, these stocks might gain a significant amount of value.
It takes time to learn whether or not a penny stock has real potential. You do not have to hit upon that perfect stock to make money in the field, but it does help. You should always make sure to keep your eye out for future growth potential, though, and make sure you are always aware of industry news. If you can accomplish both of these tasks, you stand a very good chance of catching a stock before it becomes one of the penny stocks that made it big.