Small Investors - Large Vision Making Money With Penny Stocks

By Author: Jeremy Miller
Total Articles: 23
Comment this article

Investors are reaping big profits in the Penny Stock Market. They can see returns that push from 50% to 300% in a matter of days. These investors know where to look. Whether it is recession proof markets like medicine, or the booming foreign economies in Asia, these are the types of Penny Stocks that quietly trade at base levels, and then ripen to double or triple that at the first hint that Wall Street takes notice. One aspect so appealing to Penny Stocks is that you can start small. They offer you the opportunity to buy stocks on the dollar. It's not very often you can find a Blue chip stock that gains 300% in a short time, but with penny stocks, you can.

So where do you look to find these stocks that yield such high returns? Look for up and coming businesses that fit into the recession proof model. Companies such as Microsoft (NASDAQ: MSFT) and Wal-Mart (NYSE: WMT) were once penny stocks. The savvy investor uses penny stock investing as a challenge to find "the next big thing. He learns to catch penny stock alerts when they first appear, and keeps an ear out for good, solid penny stock tips.

A good Penny stock ...
... trader is going to need patience and a good eye for stock movement if he wants to make good money in the long run. Because of the nature of Penny Stock trading, minimal investments yielding minimal returns, quantity is the keyword here. If you're new to the market, you're going to need patience to build up the quantity of stocks you're going to trade. A return of 300% may seem like a big figure at first, but not when you apply it to a $1.00 stock

Small companies like Unica corp [UNCA], and Urologix [ULGX] would be a good place to start trading penny Stocks. They represent the Web software and medicine fields respectively which have a history of productivity and steady returns. How can you differentiate between the small companies that make it and the small companies that don't? You can't. The best you can do is to keep an eye out for the companies that are an offshoot from a larger corporation, and the ones that are not. The safer bets are the offshoots because you know they have experience in the field. Good stock reporters will catch these nuances, and send out alerts to Penny Stock traders to help guide them.

Penny stock trading can be a financially rewarding endeavor if you're armed with the right information from the right sources. Knowing which type of stock historically yields high returns comes from sound Penny Stock tips and practice. This is an explosive market to get into and the wise investor knows this. He also knows that one of the best kept secrets of Penny Stock investing is receiving alerts at the early stages of a stocks run. It helps him stay on the inside track and connected with the technical trader and chartists that pick the winners.

Arnold Roth is the author of this article about penny stock alerts and penny stock newsletter daily and appeals to stock reporter worldwide.