Looking For Stock Market Tips to Help You Beat the Market? Here’s a Great Tactic

One of my favorite investment types are penny stocks.  There’s a lot of investors that don’t research these types of investments because they assume that they are risky.  However, there’s incredible opportunity to make tremendous money with these stocks once you understand what you need to look for.

Typically I see any share costs under two dollars to be a penny stock and focus on start-up companies rather than established organizations.  Some shares of established companies are priced low due to struggles that they have had.  I will always search for businesses that are new and growing rather than businesses that are simply cheap due to problems they had.  By focusing on these businesses I can set myself for a huge payday later on when they start earning profits.

We should now have a look at how you can choose the best penny stocks.  When you understand what to look for, you can start earning tremendous money. 

Analyzing the industry that the organization is involved with is a critical first stage.  Consider if a new business into the industry has a chance of success based on the existing competition.   You need to analyze the industry in general to verify that the business is offering a product or service that there is enough demand for.

Next, what about the company itself?  I like to see a business that differentiates themselves from the other competitors in some manner.  Perhaps they make a special product, or maybe they are competing by offering cheaper prices than others.  It’s a good choice to find a business that offers an original product and stands out from the other competitors in some manner.

Look at the financial statements of the company to see if anything stands out, but don’t let yourself worry if they aren’t producing positive net income at the time.  Very frequently this is the situation with up and coming companies.  It is important to ensure that the organization has money available to them.  Whether the business has access to loans or credit or cash sitting around, the organization need to have money to be able to keep investing in their organization and grow moving forward.

I also think it’s always a smart thing to have the ability to retrieve periodic updates on the business.  I love being able to visit a website where the business publishes company news because this lets me have a way to keep up to date on what’s happening.

These shares can give you enormous profits if the company begins to become successful.  By understanding how to pick out a good penny share, you can make  some great money.