at a lower price and now want to create a lot of buzz to get you to make a
purchase much higher than what they initially paid.
With some good research and being analytical of things you hear, it is easier
to pick a Penny Stock that is actually good and make the money you want.
Focus on High Volume
When you are getting started, it is best to only purchase Stocks that have a
minimum of 100,000 shares traded each day. If you go with a Stock that is
too low in volume, it is sometimes too hard to get yourself out of the
position.
In addition, experts recommend that you pick Stocks that are
selling for over 50 cents a share. Going with a Stock that is lower in price
than
this may seem appealing, but often these aren’t considered liquid
enough to really play with.
Pick the Best Stock out of the Bunch
You should make sure that you pick one of the best Stocks that you can
find, especially when you are a beginner in this business.
Some experts
recommend that you find a Stock that has really good earnings overall or
one that has broken out of its average 52-week highs in volume. Some of
these are easy to find, but the trick with these is that you want to find ones
that
have these highs, but not because of a pump and dump scheme. You
want the highs to be because others are interested in the Stock and the value
is going up naturally, not because of some buzz that is created to inflate the
price.
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