Why? The truth of the matter is it is hard to get solid research information on Penny Stocks. There is so much hyperbole and very little in the way of cold hard facts. They do not have the same filing and disclosure rules as the NASDAQ & Dow stocks do and information is scarce & unreliable for the most part.

Couple this with the fact that there are tens of thousands of penny stocks and you can see why it is such a daunting task. So if you really want to know how to pick penny stocks for yourself, you are going to have to roll up your sleeves and do some work. But the Rewards can be well worth the effort.

How To Pick Penny Stocks

Tip #1:First, realize even though they are small in the overall scheme of things, these are real companies. They are in business and doing business. They are run by real people and have real customers. So, researching them is possible. The first question you want an answer to: Is there a market for what they are selling?

I mean, if they are selling ice in Alaska or sand in the desert, scratch them off you list! On the other hand if they are making a gasoline alternative…

Tip # 2: Find out what their share of the market is. What does their sales record look like? Are sales increasing year after year or have they leveled off or even fallen?

You want to find a company that is aggressive in their marketing and sales are increasing at a healthy rate, year after year.

Tip # 3: Find all the news you can about the company. Search the Internet (don’t search for their stock symbol, search for the company name), their hometown newspaper and even contact their chamber of commerce (they can tell you if the company is growing, hiring more employees or laying everybody off.

As a stockbroker, I have even called the President/CEO of the company I had an interest in with a set of well thought out questions and usually got the answers I was looking for. You could do the same.

The information is there and available, but you will have to dig for it and it will take you some time to pull it all together. But once you do, you will be able to make an informed decision and will know the basic first steps in How To Pick Penny Stocks for yourself.

There is a viable alternative to taking on this task and that is to get the information from a reliable & proven newsletter where someone else has done all the work for you

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