VIEWS: 22 PAGES: 2 CATEGORY: Investments POSTED ON: 3/25/2010
If you're interested in making more money with low-risk
investments... whether you're a seasoned trader, looking
for additional income..
If you're interested in making more money with low-risk investments... whether you're a seasoned trader, looking for additional income..
Biotech Stock Picks Biotech Stock Picks One particular relatively easy approach for identifying excellent penny stocks is what I call the Focus Strategy. This process involves focusing on a single specific share and firm. The goal is to obtain as familiar as possible with all elements of the a firm that could reflect positively or negatively on profitability. You see, the far more intimate the details and data you've about a organization and its commodity, the better your chances of finding potentially profitable situations. Here are some questions you should ask and elements you want to consider when researching businesses... - Could be the share on a beneficial penny commodity industry? Nasdaq SmallCap and AMEX require regular reporting to shareholders, while Pink Sheet and OTCBB exchanges are less transparent and restrictive. - Does the firm have a solid business plan and excellent financial numbers? Are they lucrative or are they losing dollars? What are their forward looking expectations. - Is there any current bad press about the corporation or management? This is not a automatic deal killer but it absolutely counts. - Exactly how does the business make dollars? Are their solutions and/or companies in a growing market place? - Are their solutions and/or providers positioned in expanding markets. - Did the firm make any new developments or discoveries within the last five years or so? - Review any current hype the firm may perhaps be spinning. Subsequent, you will filter and analyze all this information. The decision to trade will result from positive impressions you get from your analysis. Like most other processes, you might tend to have superior at this as time goes on. On the other hand, you will discover a couple of disadvantages that come with making use of this technique. It requires lots of your time and attention. It also limits you to working with only 1 to three penny stock companies during any given period of time. Any a lot more than 3 and you could easily become overwhelmed. There is certainly a additional efficient and successful solution. Use a "stock picking service". Now you will have the ability to execute multiple trades in a shorter period of time. That's because significantly in the "due diligence" research footwork will likely be done for you. You only need to have to double-check the service's findings. Now don't get confused, even if you do choose to employ a share investigation service, you still will need to learn as significantly as possible about these small cap stocks. This knowledge will aid you much better realize why your store pick service selects their choices. Once you determine to take the recommendations of a legitimate assistance, you should paper trade at least the first pick they issue. Paper trading gives you the opportunity to verify the service's claims. Do some light research to make sure that the info they report about stocks is accurate. Review their past stock picking records and ask any questions you may perhaps have. Good providers of this sort do deep investigation and keep their fingers on the pulses of a lot of various stocks and firms. This really is what permits them to discover hot investment picks. When they find very good hype, there is the potential for profit. Hype is one in the most influential factors that drive share costs in the penny share industry. It's part from the current market culture and is published in press releases, newspapers, posted to investment blogs, tweeted, posted in forums and other on-line and offline media. In an effort to make the commodity look a lot more attractive to investors, firms hype and pitch situations and events that may positively impact their store price. The overwhelming majority on the stocks you select will likely be for short term trading. In this case, short term might be defined as anywhere from a few hours to approximately three months. In this current market, your objective need to be to choose likely winners, pull your profits or cut your losses and move on to the subsequent one particular. Click To View Biotech Stock Picks
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