Penny Stocks Invest Blog

The phrase “penny stock investing” can be misleading. For the most part, penny stocks are more often traded for short term gains rather than held as investments over the long haul. Still, the words trader and investor are usually interchangeable. The chance to make great money with the pennies usually comes with popular stocks that have high daily volume.

What savvy traders look for are active companies that release a lot of news, news that creates momentum. In the penny stock world momentum is often referred to as “momo.” And a hot stock moving higher might be called a momentum or momo play. Experienced penny stock investors are aware of companies that like to release a lot of news and are often able to earn high profits as a stock moves higher on reports perceived to be positive. Watching a hot penny stock move is one of he things that makes penny stock investing so exciting.

So where do traders find good momentum plays? There are lots of places online. One of the most popular sites is Raging Bull. You can check it out here: http://www.ragingbull.com. You’ll need to sign up (free) to participate. There is a very active group of penny stock investors on Raging Bull with their own forum (also free to participate) that goes by the name of Niz’s Billionaire Boyz Club. You can find them here:

http://ragingbull.quote.com/mboard/viewclub.cgi?board=CLB00412.

This board is home to thousands of penny stock investors offering hot plays day and night. Another popular free forum where people enjoy profitable penny stock investing is called Investorshub or iHub for short. http://investorshub.advfn.com. Like Raging Bull, iHub has thousands of enthusiastic penny stock traders sharing information on hot penny stock plays.

If you’re new to the pennies it might be wise to simply watch these boards for awhile. Before long you should be able to determine who the smart players are. Watch the stocks they pick. Do they move up? Do they run for a day, two days, more? A wise rule of thumb to consider with penny stock investing is most momentum plays run out of steam after three days or even sooner. So the wise strategy would be to take your profit while you can. In other words, don’t become greedy!

And finally, if you’re just getting started, make your first plays on paper only. This is called paper trading and you do it without actually investing real money. Find an entry point for your stock, record the price you’d have to pay, follow it until you feel it’s time to take your profit (or minimize your loss if it goes south) and record the trade. Once you’ve gotten good at paper trading you can try the real thing. Good Luck!