| These are fairly broad penny stock investing tips | | | | investors pushing the price still higher. |
| rather than actual recommendations. The idea is to | | | | The company may have sound fundamentals or have |
| give you a grounding on what to look out for when | | | | just made a positive announcement on earnings or |
| selecting the best stocks to trade. | | | | new developments. |
| Look For The Annual Low | | | | Look For A Temporary Dip In Price |
| Every investors aims to buy at a low price and sell at | | | | A penny stock's price can dip temporarily due to a |
| a higher price but remember, penny stock investing is | | | | fall in performance of a similar stock or a drop in |
| more volatile. | | | | OTC market overall. |
| Blue chips have their highs and lows but they are | | | | Look for a temporary drop and also for signs of |
| more likely to trend over time in one direction. Penny | | | | recovery. You need to find out is the dip has been |
| stocks being more volatile, will fluctuate more within a | | | | caused by factors not related to the company's |
| trading range. | | | | performance. |
| As a penny stock reaches it's high for the year | | | | Look For High Volume Penny Stocks |
| investors will look to take profits and this drives the | | | | Small trades in low volume penny stocks can impact |
| price down. On the other hand, as the penny stock | | | | the share price sometimes making it difficult to trade |
| price heads towards it's annual low, people once again | | | | at the price you want. Trading in high volume penny |
| see it as a good deal and start buying again, forcing | | | | stocks lets you make substantial trades without |
| the price upwards. So, look for penny stocks near | | | | impacting the price. |
| their annual low, the chances are buyers will re-enter | | | | As trading volumes increase so does market maker |
| the market and the stock price will rise. | | | | participation increasing competition and narrowing |
| Look for the Annual High | | | | price spreads. |
| As stated above, many penny stocks, after reaching | | | | The market makers compete against each other to |
| their annual high, will come under pressure that drives | | | | drive the buying and selling prices closer. This |
| the price lower. However sometimes, the stock can | | | | narrower spread makes it far easier you to turn a |
| sustain it's high price and this will attract more | | | | profit on trading high volume penny stocks. |