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5 TIPS TO INVEST IN PENNY STOCKS AND MAKE HUGE PROFIT3 min read

Do you know, thousands of penny stocks in the stock market. But if you select one from the thousands, surely you will fall into the black hole, you cant recover himself out of it. just a 0.01% chance to succeed without proper knowledge of how to invest in penny stocks and ‘how to select one the best!

how to invest in penny stocks

1. Pick Up 100 Uptrend Penny Stocks

At first, make a list of 100 penny stocks from the thousands, which have an uptrend move in monthly chart.

2. Beware From Ill Penny Stocks

Don’t go for those stocks which were a valuable market share in the past, but now arrive as a penny stocks. Like RCOM, JPPOWER etc. Some days they are the king, but now they are the worst penny stocks in the market. So, you can eliminate 60% of penny stocks from the list of 100. Now you have only 40 penny stocks in your list. Let’s go for the next step.

3. Select New Born Penny Stocks

Choose newly born stocks from the list with minimum share value ( between 10 to 100 ) which are growing from their beginning position ( i,e made a 45-degree curve ). After elimination, you must be 10 penny stocks in your pocket.

Now the biggest thing to do, which is not easy for everyone, that’s why successful traders become more successful!

4. Fundamental Analysis Of Penny Stocks

You have 10 stocks in your pocket. What I say to do you it must take your effort and time, but you have to do it carefully with full of attention!

  • Select a stock and check the reputation of the company in their field.
  • You must check their future plan from the official website. But I recommend you to visit their office and ask for the same. Don’t hesitate, after all, you are going to invest in them, you have the right to verify their identity and future plan. ( If you ready to play with a small amount, forgive to visit their office, there is a big chance to get a kick out! )

Eliminate those penny stocks who has not any strong future plan and probabilities to grow in the future. I know each n every company has a future plan, but you have to eliminate at least 3 stocks and keep other 7 stocks in your hand for the last round.

5. Technical Analysis Of Penny Stocks

This is the final step before investing in penny stocks. Beginners can’t do it as professional. You have enough potential and knowledge of technical analysis to do it.

Your investment will be gone into black hole if you can’t invest in the actual time period. Wait for Breakout! The Breakout traders can understand me easily. Don’t buy a single penny stock without confirmation of breakout.

3 or 4 stocks may ready to break out from the list of 7 penny stocks. Invest in them with the same quantities and be patient to grow them. When your portfolio shows you huge profit, don’t greedy, consult with a knowledgeable trader to make a decision to stay or exit about the position.

Successful professional investors advice to beginners to maintain the distance from penny stocks, but they are repeatedly trading on penny stocks with this strategy. The famous investor cum trader Rakesh Jhunjhunwala bought 6 crore shares of Titan in 2002 at an average price of around Rs 3, and the stock price of Titan is around Rs 924 per share. Just need a clear strategy to invest in penny stocks and wait for 15 – 20 years!

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