How to Pick Best Penny Stock?

I am newbie in penny stock trading and I have no idea how to pick best penny stocks. I got some basic idea about stock trading, but I am not an expert. So please guide me how to pick penny stocks for trading which will prove to be a good investment.How to Pick Best Penny Stock?
There are no golden rules to pick best penny stocks for trading, you have to pick penny stocks just like you would pick any other normal stock trading on NASDAQ.





Penny Stocks can be unpredictable as well as profitable so you have to be aware of the risks involved in penny stock trading.





If you are planning to start off picking penny stocks then you can start with the penny stocks listed on the NASDAQ which are also known as NASDAQ Penny Stocks. These are less unpredictable as compared to other penny stocks.





Penny Stocks which are trading on NASDAQ have to adhere to certain standards which helps the investor. There are traded on both NASDAQ as well as OTCBB but you can start picking penny stocks which are traded on NASDAQ first.





Source : http://www.pennystockpickalert.com/blog/penny-stock-picks-trading/How to Pick Best Penny Stock?
The words ';best'; and ';penny stock'; do not belong in the same sentence - there is no such thing as a ';good penny stock'; to begin with, so how can there be a ';best';?





I suppose, the best penny stock is the one that you don't buy.





If you're looking to gamble in the market, that's perfectly fine. Consider buying options on 3x leveraged ETFs or something, though. The problem with penny stocks is that they're subject to ';pump and dump'; schemes run by fraudsters who establish a position in a stock, and then promote it. When someone comes along thinking it's the deal of a century, and buys it, it's most often that same promoter who is the one selling it to you.





The problem with penny stocks is that they're incredibly illiquid. No honest person with a lick of sense goes near them. The basis for most penny stock investments is the ';Greater Fool'; theory - that someone even dumber than you are will come along after you and pay you an even more extravagant price for your shares. This is flawed logic. As it so happens, there is a finite (and small) population of fools out there to begin with, and the scamsters do a pretty good job at getting them all on-board at the same time to drive prices higher.





If you want to gamble, as i said, there is absolutely nothing wrong with that - it's your money. But be smart about it. Options on levered ETFs are infinitely more liquid than penny stocks. Just make sure average volume for the contract that you're trading is at least 500 per day or so, and you should be fine.
It is best not to trade penny stocks if you value your money. Having said that, pick and purchase at random 10 or more different stocks and watch them intently over a period of time. After a time most will not move or crash. You may be able to salvage 1 or 2 winners out of the lot. Do this on a small scale(dollar wise) and see if you can make money doing this. The trading fees can kill you if you trade too much. You can also watch a few that have demonstrated wild swing in price over a relatively short time period. You can possibly then predict when the price goes down to it's normal level, and when it tends to have a quick, short rise. Purchase accordingly if you spot predictable patterns.
Many new investors are lured to the appeal of a penny stock due to the low price and perceived potential for rapid growth, which can appear to be occurring if the stock is being promoted. However, severe loss can occur and many penny stocks lose all of their value in the long term. Accordingly, the SEC warns that penny stocks are high risk investments and new investors should be aware of the risks involved.





See More at:


http://penny-stocks.sealava.com/
for info ; open the third %26amp; sixth link in: www.all-investing-money.co.cc
Hello Jim,





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