It is a fact, penny stocks can make a lot of money very quickly.
In fact I would say that they are possibly the fastest way to generate large sums on money in the world.
So why isn't everyone rich? One simple reason, 99% of penny stock traders do not know which ones are the best penny stocks to invest in.
There are so many of them out there and it can be very difficult to pick the few winners out of all of the junk.
Well, I am going to give you a few tips that you can use to help you pick the best penny stocks to invest in.
The first thing you can do that 95% of penny stock investors overlook is trends.
Trends are any pattern you can find in the history of a stock price.
If you view the stock price over the last few years, you will likely see a trend in it's price.
This allows you to know when the price of the stock is at a low point and at it's peak.
With that information you can buy at the dip and sell at the peak with great ease.
This strategy does not work 100% of the time but I have had great success with it.
It is a great way to find out the best penny stocks to invest in.
You can combine trade volume with trends to have a better idea of what the stock will do.
If the stock has an obvious trend and a large daily trade volume, then it's trend will be very predictable.
If the trade volume is low, you cannot rely on trends as much.
So when you are looking for the best penny stocks to invest in, make sure you take trade volume into count.