2. How do you identify HOT STOCKS?
We can tell you it’s not
temperature based, but
revolves around the
company, the structure and
the liquidity. If you’re looking
up on how to pick penny
stocks, here are some
MINOR tips before diving
head first into the world of
volatility:
3. Look at how long the stock has been out for, if
you’ve just received a newsletter after 500 other
ones have gone out, and its 1 week later, it’s
probably not the best idea to enter into the trade;
you want to be first in, not second, not third. Only
first.
4. Take a look at the structure of
the company. What is
structure? How many shares
they have outstanding, and
how many shares are free
trading.
Guesstimate your own fair
valuation of a company. Not all
companies are completely
100% overvalued, though most
are. Some companies CAN BE
worth $30Million, but they’re
not worth $1.00 stock with
100million shares outstanding,
they’re worth 30Cents.
5. Identify the
type of trade
you’re going to
take,
understand
what you want
out of the
trade and
what you’re
willing to lose.
