Money Talk With Slater

Making Money Across the Board

How to Make Money with Penny Stocks (Part III)

 

Our Favorite Strategy for Trading Penny Stocks

The only real way to make money trading penny stocks is by using the same rules as typical trading. Do your research, buy a reduced stock on the upswing, and be patient. Some companies just need time to get back on their feet.

Some companies are bought out. Some companies restructure and come back better. Some companies are underrated. In any case, these are the stocks that can produce money.

Sadly, these chances are hard and complex to predict, but they are real. Using value analysis and wisely deciding the businesses to buy will give you an opportunity to discover the hidden gems.

Finding an underrated stock is like discovering a hidden gem. 

How to Find Good Penny Stocks

Part of the challenge in deciding how to make money trading penny stocks is unearthing them. Finding an underrated stock is very hard to start with since numerous investors have the next big money-making stock on the radar. With penny stocks, you’ll also have to find the underrated stock that has strong financials, a positive value, and a promising outlook.

To make money selling the penny stocks, you first have to find someone to sell it at the bargain price. If a business turnaround is expected, a trader is going to hold on to shares to reap the rewards, which makes these shares harder for you to purchase.

Once you’ve bought the potentially lucrative penny stock, you also have to make sure you can turn around and sell it. You can always keep it and take a chance on it being hot in the future, but you got it for a bargain since it’s not hot right now. No one is wanting to purchase it.

Thinking about all of this, the best chance of making money with penny stocks is discovering the hidden gem, purchasing it at a bargain price, and holding on to it until the business rebuilds and gets back on a huge market exchange again.

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