My Simple Penny Stock Picking System

By: Sam Chim
Submitted: 2007-01-17 16:16:38
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Before investing your hard-earned cash into penny stocks, it is important to research the penny stocks you want to invest in before committing any cash.. You want to find profitable penny stocks. To do this, you’ll need penny stock leads. Leads are just names of penny stocks that you are thinking of investing in.

There are many ways to get penny stock leads. For example, searching the internet (blogs and forums), joining a penny stock mailing list or keeping an eye out on the news. The main idea is to build a list of around 5 to 10 quality leads that are worthy of your money.

After you have a list of leads, you’ll want to choose one or two of them. You’ll need to go through your list and discard stocks which do not meet your criteria. This process can be tedious but it will be well worth it in the end.

The criteria that I look for include - company history, business plan, opinions of individuals and experts, financial information, competition, track record of the board of directors, company reports and broker recommendations. Using the variables, I can quickly establish whether a particular stock is worth investing in.

Once my list has been cut down to 1 or 2 stocks, I’ll ask for opinions from other people to confirm my selections. It is very important to listen to the views of other investors because, in most cases, they’ll have something valuable to contribute to your research. Perhaps, you missed out a vital piece of information which other investors could highlight for you.

Now that I have 1 or 2 stocks out of my original list of 10, I feel confident that I have done my due diligence and I am ready to invest. I use this process every time I’m investing in penny stocks and , so far, it has been simple but profitable.

About The Author
Sam Chim an experienced Penny Stock investor. If you would like to learn more about Penny Stocks, the author's site is available at: http://PennyStocks.Invest-Tips.com.

Article source: Expert Articles

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