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Penny Stock Tips - how to find a red hot penny stock
Penny Stock Tips- how to find a red hot penny stock
Do you enjoy investing in penny stocks? Are you looking for the next red hot penny stock?
A penny stock is also known as a micro cap equity and is normally a share traded for less than $5.00. Many new investors are drawn to the lure of penny stocks due to the fact that they can be traded with a small initial investment and the potential of large gains is possible. Penny stocks can rise by over 100% in a few hours and become a red hot penny stock if good news is expected. Penny stocks also appeal to those that enjoy day trading due to the fact that their share price is volatile and moves very quickly.
Penny stocks are traded on stock exchanges all over the world including the US and London. Many large companies once started out as penny stocks. Apple Inc. and Ford Motor Company used to trade for less than $5 a share.
This page will direct you to places that can provide you with penny stock tips to help you in your quest to find a red hot penny stock.
Penny Stock Investing Tips
Where to find penny stock tips
It can be difficult to find penny stock tips and own a red hot penny share, but it is not impossible. Here are a few ways you can find penny stock tips to help you find a red hot penny stock.
- On forums such as LSE dot uk, for people trading penny stocks in the UK. However investors must be wary of forum posts as many other investors ramp shares. These results in newbie investors taking risks on stocks they know nothing about to try and make a quick buck.
- Sunday newspapers frequently highlight penny stock tips, the trouble being that the stocks have already started rising in price and therefore may be at their peak so its too late to make money from them. Most newspapers actually have a small section dedicated to stocks, but here again the tips in the papers are normally one day behind. However in some cases penny stocks share price rises over the course of days and weeks, providing you with an opportunity to purchase that red hot penny stock before it is too late.
- Financial papers such as The Financial Times in the UK provide pages upon pages of information on various different companies as well as companies to watch.
- Websites- There are numerous websites and blogs all over the internet advising on what penny stock to buy and which ones are going to be the next red hot penny stock
- News channels such as CNN frequently report on stock market news and may help investors may informed decisions as which stock to buy next.
- Company websites- Individual websites probably provide some of the best clues as to whether a penny stock is going to turn into a red hot penny stock or not. It is a good idea to read quarter reports and see if the company is making any money or not. I would also suggest investigating whether a company is in debt or has solid plans for expanding. If they are trying to expand then this suggests that the company is doing well.
- Twitter- there are many penny stock tips and penny stock news tweets flying around Twitter on a regular basis. Treat these with caution.
Some words of caution when searching for penny stock tips
Penny stocks can be great if they make large gains and turn into red hot penny stocks, but sometimes they do not. It is imperative to be careful when taking onboard penny stock tips. Many newbie investors claim to be experts and all it takes is one badly researched stock being touted as the next red hot penny stock to make you lose all your hard earned cash. Please take care who you get your penny stock tips from. In most cases no one actually knows which stocks are likely to soar in share price. Although some hardened investors may have inside information on certain companies.
As with all forms of trading if you cannot afford to lose it then do not trade it.