Penny Stocks: The 3 Best Things To Look For In A Penny Stock

When traders work to be a winner at trading penny stocks, there has to be a great deal of consistency with your tactics and the behavior of the market. A specific plan of entry and exit is necessary on every trade. Without one, you are going to crash and burn and will most likely never make a real income on penny stocks. No one asks for failure, so why do so many traders fail? From my research, here are the 3 top features to find in a good penny stock that help make your trade succeed.

When you get started, the foremost trade indication is that the company has a competition advantage versus other companies. This requires having built new deals with larger companies or a fresh source of territory to build and do business in. A prime factor to find is a contract with a well known business when getting ready to pull the trigger.

Also, be sure to have a look at the earnings report of a penny stock you are looking to trade. This means searching through for a upwards trend in profits. It’s absolutely necessary to see a rising earnings pattern without a rise in penny stock value. The odds are, this will lead to a spike in price in the near future.

Finally, get a micro cap stock with a technical analysis that reads positive. If you are unfamiliar with technical analysis, most patterns are simple to get the hang of, so look for a common one like the double bottom or the ascending triangle. One or the other can be an indicator of things to come and will create a much greater chance the trade will be successful.

Pound for pound, penny stock trading is a test of knowledge and patience. After all, if not for the challenge, no one would fail! Yet fortunately, by taking the correct path and trading on a proven system, you can make much better profits. Make sure you are always finding the right penny stocks to watch and you can make quite a killing with penny stocks!

Tired of getting in on the wrong trades? Visit my site to find which penny stocks to watch to make the most money trading stocks! You’ll learn about tons of secrets and help you make a fortune with penny stock trading in order to at long last see some regular profits coming in off of penny stock trades.

source: http://www.financialnewsline.com/