Savvy online investors are always on the lookout for hot penny stocks. Penny stocks, also known as micro- cap stocks are relatively inexpensive stocks bough off market, or over the counter. Penny stocks generally trade at less than $5.00 a share by new or growth companies, or companies facing capitalization, liquidity, or debt challenges. Since penny stocks are not traded on the major, national markets, like New York Stock Exchange or the NASDQ, most penny stock investors trade them on-line without the help and expertise of a traditional broker or brokerage house. This question then becomes where investors can find hot penny stocks.

There are a number of internet resources dedicated to identifying and researching hot penny stocks. Many of these sites offer tips and advice free, but then charge a small subscription fee for access to their research and analysis, investor portfolios, and chat rooms. One of the biggest advantages of these online subscription sites is the opportunity to chat with other successful investors. Many active penny stock traders post their picks on-line, allowing you to see if they are putting their money where their mouth is. Over time, you’ll be able to track and chart these investors pick to see if they are truly able to identify the hot penny stock.

While these websites offer good tips and an introduction to some of the penny stock available, you will not necessarily want to invest your money without performing some due diligence of your own. Although companies trading penny stock are not help to the same rigorous filing, listing, and regulatory standards as traditional Blue Chip companies, you should be able to access their business plans, quarterly financials, and quarterly profit and loss statements. Independent sites like Yahoo Finance and Google Finance often offer unbiased information about companies trading hot penny stock.

The penny stock market is more volatile than the traditional stock market, so as a do it your self investor, you will need to keep a close eye on your hot penny stock. Since penny stock investors tend to buy in volume, you will want to sell as soon as the stock peaks, in order to see the biggest profit. The same goes for selling; the sheer number of penny stocks you own can lead to huge losses if there is a market down turn. Both moderate profits and losses can add up quickly for penny stock investors.

Identifying hot penny stocks is only half of your investment strategy. In order to turn a good profit on the penny stock market, investors need to be disciplined, stay on top of their stock’s movement, and take advantage of stop orders and other tools to keep losses at bay. For investors with a taste for excitement as well as some extra capitol dedicated to making quick profits, hot penny stock investments are the way to go. Penny stock investments aren’t for everyone. If they suit your needs, decide which stocks are hot, and then do your research to determine if you see a profitable trend.

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Are you looking for more information regarding purchasing penny stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!

Author Bio: Are you looking for more information regarding purchasing penny stocks? Visit http://www.smart-investing-in-stocks.com/invite.html today for more information!

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