Which Penny Stocks To Watch

By Bo Miller

No matter where you go or what magazine you read you will always hear stories about investors who have struck it rich. But most of the public are unaware about what is going on, due to their lack of knowledge regarding the market. If eveyone knew which penny stocks to watch then we would all be on an island living the easy life. But there are a few tricks of the trade that anyone can learn and use to make some huge returns in the market.

Penny stocks is the name given to any stock that is trading below $5.00 per share. They are attractive investments due to the fact that you do not need to be wealthy to buy several thousand shares. Some of the biggest money makers sold for only a few cents per share, believe it or not Wal-Mart was once a penny stock. When a small company decides to "Float" (sell shares to the public) it has the chance to increase its value, as well as the investors at the same time.

Nearly all of the major corporations climbed their way to the top using the help of investors. All the investors who bought their stock for pennies a share will be very wealthy when the company rises to the top. This all may sound great but how do we know which penny stocks to watch? well there are several ways to find these diamonds in the rough.

The old way is to search through profit reports and try to learn the history of a company. Who are the executive officers and what plans do they have for the company? Now we must do this for thousands of penny stock companies, wait a minute that sounds like alot of time and hard work. Well it is if you do it the old fashioned way.

In today's technology world many investors are using computers to analyze market data and make predictions based upon certain scenarios. The vast majority of the public will never have access to all the software it takes to make accurate investment decisions. One of the great things about the internet today is that we have many penny stock newsletters that will send you their picks FREE of charge. This is a great way for everyday consumers to learn and watch the market and when you are ready to start trading all the tools you need will be right in your inbox. It takes all the guess work out of knowing which penny stocks to watch. - 31382

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