1. Know What You Own.
Research each company before you buy a stock. InvestorsHub provides all the tools needed to figure out if a stock is worthy. The chart tools allow you to compare previous price to current price.
The Quote Page shows important key figures about a stock. Registered users can see live streaming stock quotes.
InvestorsHub penny stock message board is where investors meet online to discuss pros and cons of penny stock companies.
2. Beware the Risks.
Penny Stock investing is not for everybody. Penny stock traders are usually looking for aggressive gains and don’t mind the big risk associated with the process.
Before getting involved in a Penny Share market be sure to check the message boards before going any further. You can see the other investors debating the merits of a company and the people running it.
3. Pigs get fed but hogs get slaughtered.
Penny Stocks are attractive to many people because of the wild ride which promises high potential returns. Hundreds of penny stocks will have the stock price jump 50% or more during any given market session.
You should sell as soon as you see a nice jump in stock price. If you don’t sell quick and lock in the gains then the share price could come back down just as quickly. Tools like Stock Market Scanners and Buzz Cloud are excellent ways to find the daily movers and shakers. Can’t hate free tools!
4. Make sure to have Penny Stock Level 2.
The powerful tool for active investors is Penny Stock Level 2. It lets the user see the order book for a stock, which is in effect the engine of the market itself. Level 2 lets you in under the hood showing you what is going on trade by trade, order by order. Level 2 also provides a clear view of the market activity.
Actual stock buys and sells start as orders on the book. When lots of buy orders are placed, the price usually goes up. For penny stocks the price can go up a lot with just a few buyers. No other single tool can give you so much relevant data in real time.
5. Never take your eye off the prize.
Penny Stocks can move very quickly and so does the opportunity for making money. Always make sure you can watch your investments while the markets are in session. Internet based tools are best for instant connectivity to your data feed.
InvestorsHub mobile stock app can provide real time stock quotes for investors on the go. Level 2 is also available in the mobile app. This allows active investors to sell when their stock goes up for profit. It can also allow an investor to avoid a potential loss if they are watching the stock as it begins to fall. Keeping a close watch on your stocks is critical for both profit and avoiding losses.
Penny Stock trading is a skill game and you should prepare yourself properly before you make you first tentative investment.
There will be another hot penny stock tomorrow and the day after and the day after that, so there is no hurry. The most important thing is to be prepared properly to trade and invest in the most exciting market in the world.