What are things to look for in a penny stock that will tell me that a penny stock has potential? I know that penny stocks are risky, but i'm willing to take the risks. thanks
2006-09-06 06:24:38 · 6 answers · asked by barry1009 1 in Business & Finance ➔ Investing
Go to pinksheets.com, it will help you identify them. After that research the company, look at their revenue vs. costs, outstanding shares vs. available shares, also look at the history of the stock. As you mentioned, penny stocks are very risky but also can be very lucrative. I like to research my stocks on finance.yahoo.com.
2006-09-06 06:29:23 · answer #1 · answered by kwahaddi 3 · 0⤊ 0⤋
In my experience, the best way to make money with penny stocks is to bet on the shares to go down (short selling or shorting).
It's extremely rare that a penny stock will have long-term potential for growth.
For more information about serial losers, which can mean lots of profit for you, click on the link below.
Let's make money!
Good luck
Marc
2006-09-07 05:12:04 · answer #2 · answered by Marc H. Mayor 2 · 0⤊ 0⤋
perhaps you can try forex. which is also excellent way for you to invest.
The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another.
try forex from here:
http://www.bernanke.cn/easy-forex/
Good Luck && Wish you make a fortune!
2006-09-06 19:00:58 · answer #3 · answered by stock_trade_expert 3 · 0⤊ 0⤋
No one consistently can - that's why they are a risky investment. If I could identify them easily I would be doing that right now instead of answering your question.
2006-09-06 06:27:39 · answer #4 · answered by Rich Z 7 · 0⤊ 0⤋
PEG is proberly one of the best indicators - also there are a few great web sites out there
2006-09-06 06:30:41 · answer #5 · answered by Tro K 2 · 0⤊ 0⤋
The same way as you pick good numbers at the roulette table.
2006-09-06 06:46:13 · answer #6 · answered by svikm 3 · 0⤊ 0⤋