Dealing in penny stocks is a tempting prospect but the difficult part is to locate them
. Those companies whose stocks do not feature in The Wall Street Journal may not be considered worthy of a trial by investors. But that itself is the trick involved here. Usually the top penny stocks lie hidden i.e. offered by companies who do not figure in
economic journals and news channels. Searching penny stocks takes some pain and exploring paths others don't tread. The idea is to place your bets with emerging companies who begin with offering stocks under $1. They have to begin by attracting part time investors because they are the ones likely to stick when the share prices fluctuate. The more
seasoned ones tend to leave the moment they see a downward slope in
prices.
Traditionally penny stocks are stocks trading under $1 but these can be used with ultra small and micro cap stocks additionally as well. Sadly the tough part, as mentioned above, is being able to sift the practical from the tempting ones. Using a research filter we usually come across hundreds to thousands of 'stocks under $1'. There are many stocks under $1 being traded in the market. It is important for people desiring to invest to have clear idea about their resources, how much they want to save, to keep aside for expenditures, and the remaining to put in the stock market. Discussing with fellow investors and being orthodox sometimes works well, in the sense that investing the way every one else does but choosing a brand whose market prices are most likely to go up. Follow the instincts, as they say.
A word of caution: these small cap stocks are extremely volatile and can from a range of hundreds to thousands of percentage points. The time during which they are on a rise seems ideal to many and traders get full advantage of it. Thus stocks under $1 will be an ultimate and ideal option for the maximum and the quickies gain to the traders. It takes a miner's eye to see the diamond within a piece of coal. It is just what each investor dreams of becoming and the low priced stocks are priced that way for the cause. The stock market is bullish in many countries these days. It's time to draw blood but also to watch where you stab the dagger.