Want to know how to find penny stocks to watch? If you do then this article may well be one of the most important you have read for a long time.
In it I will reveal an incredibly simple method I use to get a list of penny stocks worth my time and money watching.
Using this method I have made a steady monthly profit of around $2,000 and so far this figure is increasing.
For some time I struggle to develop a system of stock picking that worked for me.
I used to spend hours and hours researching, reading, calculating ratios etc and when eventually I did decide to invest in a stock it turned out to be a bad mistake.
It took me a while to realize what I was doing wrong, I had no real strategy.
I would get stuck in the analysis phase all to often and then nine times out of ten I would simply say "what the heck, this stock looks ok, i'll risk it".
Big mistake.
As soon as I developed a strategy and started sticking to it I began to profit.
1.
Get a big head start First I need a start point.
A way to get a short list of companies from the thousands out there that may be wroth investing in.
The list i use is produced by a software program written by a former employee of one of the biggest and most successful investment banks in the world.
The software analyzes literally thousands of stocks everyday, applies a set of filter criteria over them to look for stocks it deems are undervalued.
The it simply sends the short list to the subscribers.
This list subscription is easily the best 50 bucks i ever spent.
It basically gives me top quality research and saves me from doing 85% of the work.
However my strategy does not stop there.
2.
Use my experience Once I have the penny stock list, my work starts.
I look up each of the proposed companies o the internet and thouroughly read their websites to fully understand what they do.
Any with what I deem to be poor or uninformative site a cross off the list.
I mean if they can not even put a website together do i really want to invest my hard earned cash in them? If having read their site I still can not grasp their main business and see it is a good business to be in the are dropped from my list.
3.
Use other peoples experience The internet is such a powerful resource that most people do not use to its best ability.
Do a search on Google for"CompanyName + Forum" and more often than not you will find customers of a company posting on internet forums about their experiences of the company.
If all you find are negatives, cross it off the list.
4.
Trend Analysis This is easy to perform and nowhere near as technical as it sounds.
I simply identify if the company is active in an industry that is on a goring trend.
For example if the company publishes books, I cross them from the list.
Everyone knows that sales of books are falling with the advent of the internet and digital media.
Yes some publishing companies do very well however it is much harder to pick a good stock in a dying industry.
If on the other hand the company is in a booming sector, making cell phone chips for example, they stay on the list.
5.
Look to the future To make money from a stock you need its future value to be greater than the market expects.
Scour the company website for future product developments.
If it is working on products that will benefit its customers even more then there is a very good chance its future profits will increase by more than the market expects.
Once I have applied the 5 steps above, the remaining stocks I deem worthy of investment.
Sometimes I am left with none to invest in which I accept - do not be tempted to go looking for opportunities that do not exist.
In it I will reveal an incredibly simple method I use to get a list of penny stocks worth my time and money watching.
Using this method I have made a steady monthly profit of around $2,000 and so far this figure is increasing.
For some time I struggle to develop a system of stock picking that worked for me.
I used to spend hours and hours researching, reading, calculating ratios etc and when eventually I did decide to invest in a stock it turned out to be a bad mistake.
It took me a while to realize what I was doing wrong, I had no real strategy.
I would get stuck in the analysis phase all to often and then nine times out of ten I would simply say "what the heck, this stock looks ok, i'll risk it".
Big mistake.
As soon as I developed a strategy and started sticking to it I began to profit.
1.
Get a big head start First I need a start point.
A way to get a short list of companies from the thousands out there that may be wroth investing in.
The list i use is produced by a software program written by a former employee of one of the biggest and most successful investment banks in the world.
The software analyzes literally thousands of stocks everyday, applies a set of filter criteria over them to look for stocks it deems are undervalued.
The it simply sends the short list to the subscribers.
This list subscription is easily the best 50 bucks i ever spent.
It basically gives me top quality research and saves me from doing 85% of the work.
However my strategy does not stop there.
2.
Use my experience Once I have the penny stock list, my work starts.
I look up each of the proposed companies o the internet and thouroughly read their websites to fully understand what they do.
Any with what I deem to be poor or uninformative site a cross off the list.
I mean if they can not even put a website together do i really want to invest my hard earned cash in them? If having read their site I still can not grasp their main business and see it is a good business to be in the are dropped from my list.
3.
Use other peoples experience The internet is such a powerful resource that most people do not use to its best ability.
Do a search on Google for"CompanyName + Forum" and more often than not you will find customers of a company posting on internet forums about their experiences of the company.
If all you find are negatives, cross it off the list.
4.
Trend Analysis This is easy to perform and nowhere near as technical as it sounds.
I simply identify if the company is active in an industry that is on a goring trend.
For example if the company publishes books, I cross them from the list.
Everyone knows that sales of books are falling with the advent of the internet and digital media.
Yes some publishing companies do very well however it is much harder to pick a good stock in a dying industry.
If on the other hand the company is in a booming sector, making cell phone chips for example, they stay on the list.
5.
Look to the future To make money from a stock you need its future value to be greater than the market expects.
Scour the company website for future product developments.
If it is working on products that will benefit its customers even more then there is a very good chance its future profits will increase by more than the market expects.
Once I have applied the 5 steps above, the remaining stocks I deem worthy of investment.
Sometimes I am left with none to invest in which I accept - do not be tempted to go looking for opportunities that do not exist.