There is no scarcity of the places offering opinions about penny stocks. It is quite easy to find the stocks but picking the right ones from a list of thousands of available stocks is a daunting task. You might wonder where to get started and how to find the penny stocks giving positive returns to the investors. It is a tricky part as it requires intensive research to find out the most rewarding stocks which could actually increase your money.
Finding the penny stock list
It is difficult to find the right penny stocks. You need time to research the penny stock lists and gather information about the companies in which you actually think that there could be substantial gains. It is not at all encouraged to buy a stock just because your friend, coworker or some relative has purchased it. Your personal efforts on the stock search are quite important in getting successful results.
There are many websites offering excellent penny stock investments. Most of the chances are that these platforms will lead you towards the companies planning for pump and dump schemes. Finding the website that lists the penny stocks is very easy and there are many of them available on the web. It is essential to proceed with the legitimate penny stocks and start with one-two preeminent websites to get the suitable list. You can follow the filters on the websites based on the desired criteria. Make sure that you search for each company individually to evaluate the companies by using the fundamental tools for getting the technical analysis for penny stocks.
5 tips to avoid scams for penny stocks:
- Be prepared for a scammer until all the odds are ruled out
If you come across any recommendation related to the penny stocks, the advice is probably from the company itself. The promoters, advertisers or paid links will stand to profit from your investments and look out to attract you towards making a stock purchase.
- Investigation of the company
It is essential to carefully go through the financial statements of the company and get your hands on the business prospectus and information relating to the company. The information is hard to find out but it is not impossible. The more you gather about the company, the better it will be.
- The positioning of the stock
There are some penny stocks positioned on the major stock exchanges like Nasdaq, NYSE, TSE, and others. These stocks are probably the positive sources than the OTCBB and pink sheets which are truly the scammer sources for ruining your investments.
- Verification of the claims
Penny stock promoters will give false reports about their companies. The claims are often the bait for you to buy the stocks without giving a second thought. You can find the supplementary information from the legitimate sources to get the most accurate results for your stocks purchase.
- Keep a skeptical approach
No one can turn rich very rapidly. Everything requires time and efforts to become successful and penny stocks are no different.