Sure Fire Tips on How to Pick the Best Penny Stock

So you want to make money in the stock market, good for you! Maybe you're new to Penny Stocks or worse, maybe you've tried your hand at this type of investing, but just failed miserably at it. Well if that was you, don't feel bad about 97% of investors that try Penny Stocks fail miserably.

Why?

For Several Reasons-- maybe bad advice, haphazard trading or incomplete research. From this point on, whatever caused you to fail is in the past. From now on you will know exactly what to look for when trying to find a good resource for Penny Stock Tips.

Before we get started with what makes a good Penny Stock, we should get a definition of what penny stocks are and why they are so appealing. Generally speaking, Penny Stocks are stocks that are traded for less than $5. My definition of a Penny Stock is any option that is traded for less than $2.

Now you may or may not know this, but Penny Stocks are traded just like your bigger stocks or Blue Chips. You will hear a lot about Canadian Penny Stocks because there are definitely Hot Penny Stock Picks that you can only trade on CDNX- the Canadian Venture Exchange. Other markets that trade Penny Stocks are NASDAQ SmallCap, Pink Sheets (most widely known) and Over the Counter OTC.

Why are Penny Stocks so appealing?

Well first off, they're exciting and fun! But most importantly they are a vehicle to the potential of huge gains in short amounts of time. Your Blue Chips will never perform like the right Penny Stock.

So what should we consider when choosing a Penny Stock ?

Here are 10 crucial things you should look for:

• Make sure that they Can Be Traded on the CDNX. Many top penny stock picks can only be traded here.
• Look at last years picks and the performance of each pick.
  
• Look for information that demonstrated the picks to be worthy of passing them on. The more info the better. Not only should the numbers (profit & loss, Capital, etc.) come into play, but things like Management and information on the competition is imperative.
• Look for comparisons on Brokers.
  
• Have information for all levels of investors?
• Do your research don't be fouled by the first thing you read
• Stats can be deceiving - make sure you understand what you are reading
• If your a beginner try not to get carried away!!!