4 Penny Stock Investment Tips for Beginners


There are many different investment opportunities for people to choose from today. If you have decided that penny stocks are the right option for you, it is important to conduct considerable research before you jump right in.

One of the biggest investment mistakes you can make is rushing into things, no matter your investment of choice.

With that in mind, if you are getting ready to start your journey as a penny stock trader, read on for some tips to help you get started.


#1 Invest in your education

There is only one place to begin, and this is by getting yourself an education. It doesn’t matter how much you think you know, it’s unlikely you know everything about stock trading. This is why getting an education should be a massive priority.

The vast majority of traders out there do not make profit on a consistent basis, and this is because they have failed to do their homework.

Not only this, but you need to overlook the comments that are left by non-transparent traders. While looking on trader social networks, message boards, and chat rooms, you will find an abundance of messages from traders claiming to make a fortune.

You will find that most people only tell you what they want you to hear, rather than the truth.


#2 Don’t look for penny stocks that are jumping high on volume

A lot of new investors will see a stock that goes up 50 percent on high volume and assumes that this indicates a good investment. However, this is usually not the case.

There are some key links between volume and winning stocks you need to be aware of. For example, if stocks have a huge surge in volume, the price is likely to correct. If the volume decreases, the price is likely to rebound.


#3 Choose investment platforms with care

There are many different platforms to choose from today when trading penny stocks, yet you need to select with care. Take the time to read reviews that have been posted online for a thorough understanding.

This Merrill Edge Review is a good place to start, giving you full clarity regarding what to expect from this investment broker service.

You should never choose something simply because it is the first platform you have stumbled across or because one of your friends have recommended it.


#4 Make use of resistance levels and support levels

You may feel that some forms of technical analysis are unnecessary because they are subjective and convoluted, but you need to make use resistance levels and support levels. Simply analysis techniques like this will provide you with the support you need to become a good penny stock investor.

If you follow the advice that has been mentioned above, you can give yourself a better chance of making yourself a successful penny stock investor.

Do you invest in penny stocks?  Let me know what you’re doing to find success with penny stocks?  Share your thoughts and comments below.



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