Free Investment Advice

Source: web.wn.net

Here are ten tips you should consider when shopping around for penny stocks:

1. Before buying - make sure that these penny stocks are not likely to go bankrupt! 2:1 assets vs liabilities is very nice, but more important is liquid assets, cash on hand, etc.

2. Check out Tinystock Caution list. Learn what to look for and reasons to avoid certain stocks there.

3. Guage the “hype” via message boards, etc. Hype has an awful lot to do with penny stocks. Analyze the news on the stock! A “good” penny stock company knows how to feed tidbits of good news all the time. A bad one never puts out news. Some only put out bad news…

4. Watch volume–make sure it is not a “selling off” before buying! Volume over 1 million is often a good flag! Buy into one with less and you may find it very hard to sell.

5. Buy a penny stock lower than today’s price if possible…Just have patience and leave an order good to cancel, or nothing, and WITH a LIMIT PRICE.. Never, ever place a MARKET order or you may pay 2-3 times more than you wanted to. Usually buy near the 52-week low!

6. Look at getting out after your penny stock doubles your money, or selling one half - which puts you in a very good position… We like to sell 1/4 off after it doubles.

7. If your penny stock happens to go down–hold long term–even a year or more….In the meantime “hype” it (telling truth only) periodically via stock message boards, etc.