| Well, its not unusual for new investors to prepare a | | | | carry out research and analyse the results to find |
| list of penny stocks that they can hope to build their | | | | which amongst the stocks are generating interest |
| fortune with in a highly lucrative stock market. | | | | amongst investors that has resulted in some kind of |
| Trading in penny stocks indeed appears very | | | | momentum. How is the shares moving and what kind |
| tempting and lucrative, its especially popular amongst | | | | of pattern does it make, that instantly is a hit and |
| small investors who intend to build a fortune with | | | | considered hot for investment. |
| very little capital to invest with initially. According to | | | | A novice will be overwhelmed with the large flow of |
| SEC, penny stocks are those that sell for not more | | | | data from various sources including stock exchanges. |
| than $5, and hence it won't be very difficult to find | | | | Moreover since the shares are valued less than $5 |
| stocks valued at as low as $0.01 per share. | | | | hence they are not subjected to strict regulations of |
| In that case who wouldn't be tempted to buy such | | | | the SEC to disclose everything about its nature of |
| dirt cheap stocks in such huge volumes. Lets suppose | | | | business, its future plans, its past performance etc. All |
| you as a day trader invest $500 to buy 5000 shares | | | | these details are available only with expert traders |
| @ $0.10 of a highly potential penny stock, and after | | | | and brokers. Moreover the market being extremely |
| few weeks if the price of such a share increases by | | | | volatile makes trading in penny stocks highly risky. Its |
| say 500% in that case the share price would be | | | | always reminiscent of a war zone kind of situation |
| $0.50 each. So an investment of $500 would then | | | | for investors to put in their money with the hope to |
| fetch a return of $25000. That too in matter of | | | | build a fortune around it. There are risks of investing |
| weeks. If you had invested $500 for a large cap | | | | in over hyped stocks and being victim of a pump and |
| share, it won't ever give you a 500% return, that | | | | dump scheme by scam artists waiting to grab your |
| too in just few weeks time. | | | | money. |
| No wonder day traders are so much obsessed in | | | | There are of course sophisticated stock technical |
| preparing a list of penny stocks and narrowing down | | | | analysis software and newsletters offered to paid |
| their focus on just few of these that they wish to | | | | members from highly reliable and reputed sources |
| build their portfolio with four or five of the hottest | | | | who can help you to prepare a list of penny stocks |
| penny stocks. Now how does one really go about | | | | to trade profitably with details of entry and exit |
| scouting for such shares with which to build a list and | | | | points, to minimise risk and for maximum gains. |
| then trading them for fortune. For this one needs to | | | | |