Wednesday, September 19, 2012

Using Latest Stock Market News to Focus on Penny Stocks - Finance - PersonalFinance

Reaping large harvests by sowing small seeds seems to be the investment mantra of most investors, but is it always possible to do so? The tools that you need to employ for judicious investment designed to bring forth best results are the latest stock market news, stock analyst ratings and information regarding penny stocks to buy now. By studying the top ten penny stock and researching the companies and their history of stock movements, you can easily decide which stock will yield the desired results.

Most investors keep tracking the latest stock market news so that they can invest in the cheapest, top ten penny stocks. The stakes are low and the chance of making money is high, but it is important not to miss the bus since opportunities to buy the right stock at a favorable price come unannounced and there is every possibility that you might miss them.Getting timely information is of paramount importance in order to choose the right stock to invest in and at the right time.

The top ten penny stocks are chosen by analysts after careful research and analysis. They make sure that the companies that own such stock have a reliable standing especially in the case of penny stocks or micro caps. However, it is important not to leave you fortunes in their hands completely and blindly follow their recommendations. It is necessary to involve yourself in the process and chalk out your own ratings after thorough research and then combine your ratings with the recommended ratings of the analysts in order to decide which penny stocks to invest in.

It is also advisable in some cases not to follow the recommended top ten penny stock recommendations blindly and to investigate further to ensure double safety for your investment. One way of doing this is to find an alternate stock analyst for obtaining another view on stock ratings recommendations.

In order to find the best time to buy penny stock, you can either follow the Fundamental Analysis School of thought or you can go with the Technical Analysis School of thought. In the former case, you are not required to focus on the current price of the stock, but you need to focus on products and profitability. You would basically need to investigate the comparative strength and profitability of the company with relation to its competitors. In the case of Technical Analysis School, the focus is on the current stock price and not on analyst statements.

Beginners should however focus their attention on getting to recognize the trend of the stock and the direction in which it is heading. If a historical chart is analyzed and if it shows that the stock price tends to rise in the long run, it would be safe toinvest in that stock and vice versa.





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