Why Should You Purchase Penny Stocks? - If You've Been Interested In Investing, Consider This

After investing in the stock market for years

, I recently began to turn my sites to cheap stocks which happen to typically be the sole focus for many day traders because of the increased volatility.

This article is going to explain what you should know to purchase penny stocks and find the best of the best at that using a technique which I've found considerable success through in recent months, particularly if you've been interested in investing for some time now but were always wary of the risk associated with it.

Because these stocks can be bought for literally pennies per share, it takes relatively little trading influence to send one of them soaring in the short term. Because of this, these stocks offer greater profit potential than virtually any other investment and is why I recommend that you only purchase penny stocks.

The obvious counterpoint to make is that given their cheaper prices, these stocks can just as easily bottom out just as fast. For this reason, I recommend using an analytics program which only targets low priced stocks when you trade so that you can differentiate between the stocks which are set to perform well against those which will lose value and purchase penny stocks accordingly.

These programs operate in predicting market behavior the same way that the trading firms do in that they take the whole span of the market into account. The market repeats itself every several years which can be seen in the fact that we experience recessions and recovery periods regularly throughout our economy's history.

The stocks themselves perform in similar fashions, so if you find the origins of what led to a profitable trend in a stock in the past, you can apply those origins/tendencies to any current, real time stock pick which is behaving similarly to get a precise idea of how that stock is set to act in the immediate future.

The penny stock focused program I've used as of late generated my very first pick months ago and it was valued at $0.18. It did very well on the first day alone after the pick, shooting up to $0.38. At this point I started to check in on it regularly on the half hour the next day before it finally topped off at $0.57. Some stocks jump that quickly whereas others take more time to reach their potential.

by: Jonathan Langley

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