Over the next month we’ll be adding some penny stock investing tips.

These are fairly broad penny stock investing tips rather than actual recommendations. The idea is to give you a grounding on what to look out for when selecting the best penny stocks to trade.

Buy Low and Sell High

Well, that one is obvious! Yes, of course it is, it’s every investor’s goal but it has a slightly different meaning when applied to penny stock trading.

Stocks on the major exchanges have highs and lows the same as penny stocks but they are more likely to trend over time in one direction, either up or down. Penny stocks tend to be more volatile and will fluctuate more often without breaking out of a long term trend.

Penny stock investors are more likely to take profits as a penny stock reaches it’s 52 week high. This selling will drive down the price. Conversely, as the penny stock price heads towards it’s low, people once again see it as a bargain, pile in to buy, driving the price back up.

Therefore look for penny stocks that are at or near their 52 week low. Keep an eye on the stock for a few days and make sure it is not headed for a new low before investing.

Todd B.

Related Posts

Tagged with: • • • • •

Filed under: Blog Posts

Like this post? Subscribe to my RSS feed and get loads more!