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Tuesday, November 10, 2009

Best Penny Stocks

By Bo Miller

Micro cap stocks make for some very interesting conversation, some investors love them while others are not so sure about them. Usually those who have made large profits love them while those who have lost money do not really care for them.

So with some investors winning and some losing how do you know when and how to invest in these so called "penny stocks" to make some some good profits. Well there are several things that profitable investors are doing to cash in on these types of investments. By the end of this article you too will know what is needed to make good money trading penny stocks.

Well first of all you have to find a company that is on the verge of a major break out. Usually companies like this will have experienced a steady increase in the profits for the last few quarters. They may have developed a cutting edge technology or product that the world cannot live without. The management of this company must be strong and able to handle the necessary duties to grow this company and make money for all the investors involved.

Many companies will provide online interviews of the CEO's, this is a great tool and helps investors to better understand the goals and plans of the company. Many investors think wrong about these types of companies. One common thing said about these companies is " if they are so great why are they so cheap" however most companies started out small. Think about dell and apple computers, apple was started from a garage and look how large the company is today! so never underestimate the power of the small business.

Almost all successful penny stock traders follow the tips listed above. But many do not have the time to do all the research that is needed to pick a big winner. The web is filled with great newsletters that are FREE and it is a great idea to sign up for several. You can make great money trading penny stocks but you must have the inside scoop! - 23208

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