How to Pick Stocks

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How to Pick Stocks

  1. 1. How To Pick StocksBy: www.CandleStickForums.com
  2. 2. How to Pick Stocks when PennyStock InvestingBy: www.CandleStickForums.com
  3. 3. Many new investors are interested inlearning how to pick stockswhen penny stock investing. Pennystocks are highly volatile so it takesdue diligence when building a pennystock list. Penny stocks areconsidered over the counterstocks and are traded on the OTCBBand the Pink Sheet exchanges.By: www.CandleStickForums.com
  4. 4. Investors who would like to tradepenny stocks must understand thatthey can be extremely dangerousno matter the experience level, andthey can be especially dangerousfor beginner investors. Today’sarticle will focus on how to pickstocks when investing in pennystocks.By: www.CandleStickForums.com
  5. 5. The first item to discuss is thepotential profitability of thecompany you are interested inwhen picking stocks. You must askyourself if they are making anysizeable profits, and if their profitto debt ratio is favorable.By: www.CandleStickForums.com
  6. 6. You must also watch howprogressive the debt payoffs havebeen. These factors will indicatethe success level of financialmanagement for that company.By: www.CandleStickForums.com
  7. 7. When learning how to pick stocksyou must also come up with ascreening process.By: www.CandleStickForums.com
  8. 8. Before you even begin investing instock, you must formulate a list ofpenny stocks that you will watchevery day for a predeterminedamount of time. You should notethat penny stocks that are tradingat their 52 week high or low havethe potential to be huge gainers ina penny stock portfolio.By: www.CandleStickForums.com
  9. 9. The most successful way to tradestock is to look for industry trends.The idea is to get ahead of theindustry trends by findingcompanies that are on the edge ofdemand. If there is a high demandfor gold, then people will go outand buy gold.By: www.CandleStickForums.com
  10. 10. This actually does not signifyforward thinking because thepublic has already taken notice.By: www.CandleStickForums.com
  11. 11. You must look for and identifythese hot stocks on your ownbefore the public in order to makethe greatest profit. This is veryhard to do for a lot of investorsbecause it requires a lot of timeand research.By: www.CandleStickForums.com
  12. 12. Another factor to take intoconsideration when buying stock isthe tenure of the company. Findout how long they have been inbusiness.By: www.CandleStickForums.com
  13. 13. It is usually safer to invest in moreestablished companies, but that isnot to say that investing in newercompanies is a bad idea whenyou buy penny stocks. Just be sureto do your research on thecompany to be sure it’s a wisemove.By: www.CandleStickForums.com
  14. 14. Another great way to find out howto pick stocks that you want toinvest in is to look for those stocksthat you have a personal interestin.By: www.CandleStickForums.com
  15. 15. You will find that you are morenaturally inclined to study andchoose the best stockpicks because you are researchingmore heavily than you would be ofstocks that don’t interest you.By: www.CandleStickForums.com
  16. 16. It is important to be patient whenlearning how to pick stocks. Ittakes a lot of time and duediligence, but once you have builtyour list you can then begin toomit the stocks that don’t performwell as time passes.By: www.CandleStickForums.com
  17. 17. Just remember, that penny stocksare highly volatile meaning thatthe potential for high rewardscarries with it the potential forhigh investment riskBy: www.CandleStickForums.com

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