Finding Good Penny Stocks

Good penny stocks are not found by accident. You can get lucky and occassionally come across a winner, but finding winners by accident regularly is unlikely to happen.

Finding good penny stocks on any market is the result of time and timing. If you have the right time and timing, it is possible to make a killing trading stocks. We will discuss how to use time to your advantage later. If you want to jump straight in to penny stocks without spending time checking out the markets yourself, a trusted source for hot penny stock picks is here.

I’m talking about penny stocks rather than all stocks because there is more potential to make large returns from smaller investments. Compare a $50 stock and a 10 cent penny stock. Say you buy $1,000 worth of each. If both shares increase in value by just 10 cents (highly likely for both) the $50 stock makes a return of just $2, whereas the 10 cent stock makes a huge $1,000!

So, how do we use time and timing to our advantage? The investment timing is a result of the time you spend analyzing the market. Investing in stocks is like opening a business. When you start a new business you are going to be profiting most from “what’s hot” at the moment. It is exactly the same in stock market investing. Follow the market trends, follow company announcements, and always be ready to jump on something you find is a winner.

If all this seems a bit too much work along-side family and day job, consider signing up to the weekly Marl investment newsletter. Each week you will be sent the good penny stocks list, as analyzed by a stock trading robot. Sign up to the newsletter here.