When the financial news networks cover the stock market, they tend to focus on the stocks traded on the major stock exchanges, like the New York Stock Exchange, the NASDQ, The London Stock Exchange and the Japanese Nikkei. For many investors, these traditional stocks, and the heft brokerage fees and the long waiting time in order to see a profit are not appealing. These investors, the ones seeking bigger risks with the possibility of bigger, more immediate rewards are trading penny stocks. Since the mainstream financial media is not generally covering the hot penny stock market, investors often decide which hot penny stocks to pick on their own.

One way to identify which hot penny stocks you should pick is to follow the national stock trends. Instead of investing in traditional blue chip companies, look for second or third tier companies, startups, and companies that have some liquidity, equity, or debt challenges. These companies should feel the trickledown effect of a bull market in their particular industry. So, instead of investing in Starbucks, you may find a regional coffee shop that offer hot penny stocks and an opportunity to get in on the ground floor.

There are a number of websites dedicated to identifying hot penny tocks. These sites offer their daily, weekly, and monthly hot picks. These sites may also offer you an opportunity to talk to successful penny stock investors via instant chat, email, or discussion forum. Instead of turning to a traditional broker for advice and counsel, you can chat, in real time, with other investors about which hot penny stock to pick. You can chart their successes and progress to see if they are as successful as they claim to be.

Penny stocks are not subjected to the same rigorous filing, listing, and regulatory standards as traditional stocks, so finding unbiased research about a company’s assets, liability, profit, and debt, can be challenging. Most analysts recommend that you conduct some of your own research on your hot penny stock choices. At the very least, you will want to look at a company’s business models, and recent profit and loss statements to get a picture of the overall financial health of the company. Sites like Google Finance and Yahoo Finance are good places to start your search for unbiased research on your hot penny stock picks.

Deciding which hot penny stocks to pick is equal part research, intuition, and networking. By participating in the conversation with other penny stock investors, you have developed an important network of advisors and you can watch how successful their penny stocks picks are. These chat rooms, message boards, and discussion forums illustrate if these investors are putting their money where their mouth is. As with any stock portfolio, timing is key, so keep your eye on your stocks movement. Since penny stock investors tend to trade in higher volumes than traditional investors, even moderate gains and losses can add up quickly. Picking hot penny stocks is an option for an untraditional investor who is looking for a quick, big risk, bigger rewards scenario.

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

Category: Finances
Keywords: hot penny stocks