It is time to trade penny stocks. There really are some great penny stocks out there! Don’t think that all penny stocks are scams. Yes, there are a lot of scams, but there are also some great gems to be found as well. So, don’t let people tell you that you should never buy penny stocks. The same thing goes with buy when people are scared. When people are selling that is when you buy. When people are scared, and panicking that is when you remain calm and buy up some good deals.
You have to research the company before you buy anything though. Do your homework. Know who the CEO is, know what kind of job they had before this company. Know about new products the company plans on launching. Find out about the employees of the company. How long have those employees been working for the company? Don’t be afraid to call up the company to do some more research. Most companies have an investor relations person there just to answer your questions. And if a company doesn’t have a number to call, then don’t buy their stock!
There are also a lot of penny stocks they offer a nice high yielding dividend. Owning the stocks that pay out dividends should most likely be held for the long term. So they may not be too many of these micro-cap stocks, but they are out there. Check out some REIT stocks right now, they do really well in today’s economy. When interest’s rates are low and unemployment is high, these types of stocks do well. They have extremely high yielding dividends around 10% to 15%! I plan to and have already bought up some nice REIT penny stocks. Since congress plans to keep interest rates low until the middle of 2013, I think these stocks are some of the best stocks to own right now. Of course, you have to watch out for when interest rates rise or if inflation hits.
Of course, you may want to buy the penny stocks that are undervalued and are a good strong company. However, don’t start day trading penny stocks of these means. You want to hold on to them for the long haul. A long-term investment. You will want to hold on to these ones for 20 or 30 years. These penny stocks are the gems that you go hunting for. Make sure to really research the company completely though. Check out the cash flow, analysis the financial statement, look at the history. There are several ways to buy penny stocks, learn how to start day trading penny stocks and learn how to start investing in penny stocks.