Things to Consider When Doing Penny Stock Picks

1. Things to Consider When Doing Penny Stock Picks 1. Never Use Emotion To Choose Penny Stocks - Your penny stock picks should be based on company knowledge and sound investment strategy not on emotions. Investing in any stock can be exciting but you should make all of your investment decisions on the facts and information available. Avoid all emotion when you are evaluating and picking stocks so that you get the best possible results from your efforts. Emotions can cause you to choose the wrong stocks and end up losing capital instead of earning a profit. 2. Learn Everything Possible Before Making Investment Decisions - Research is critical with any stock, and especially so with penny stocks. Penny stocks are those not traded on the typical stock markets for a number of reasons. These stocks may have a limited history because they represent a newly created company or only offer a small amount of financial information about the company. 3. Industry Is Important - The industry of your micro cap stock picks is another important factor. Penny stock market has seen significant advancements in the recent past may be poised to take off or flop dependent on this advancement. Look at the industry of the company and determine whether the industry is a good one for investment right now. 4. Monitor Current Events and Recent News - Recent news stories and current events around the world can have an impact on any stock. Monitor the news and current events to discover anything that could have an impact on certain sectors or industries. This can help you choose stock picks that have better than average chances of success. Political unrest in the Middle East may mean that oil stocks are a good choice while other events may have different implications.

2. 5. Never Choose Stocks Solely Based on Emails or Newsletters - You should never make penny stock picks based on email advice or an unsolicited ad. Many spam websites operate by sending emails and generating interest in a particular penny stock. Once many investors buy the stocks and generate a substantial price increase the con artist sells and disappears. Investors are left with worthless stock and losses. 6. Evaluate All of Your Possible Options - Make sure you create a decent list of micro cap stock possibilities before you start evaluating and comparing stocks and making a final decision. Use the penny stock forums, message boards, and reputable sites to locate new offerings in the type of market. Determine which stock choices are undervalued because these are usually the best choice when it comes to picking stocks. 7. Keep Your Investing Strategy in Mind and Never Disregard Your Acceptable Risk Levels - When you make penny stock picks make sure to remember the strategy and acceptable risk levels that you have put in place. The reason that you develop these components is to protect yourself and your capital, but it is surprising how many investors disregard the guidelines they have developed when it comes to penny stocks. This is a big mistake. Always keep your acceptable risk levels and ideal strategy in mind when you are picking out stocks to invest in. Paradigm Capital Management is a trusted leader in small cap investing. With a long history of small-cap investing, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. We have the experts when it comes to penny stock picking and we can definitely assist you with your financial goal, contact us at (518) 431-3500 Or visit here: http://paradigmcapital.com/