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by: ChrisBraff
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If you've got a list of penny stocks, that's great. But how are you supposed to tell which penny stocks are the best?

Choosing the best penny stocks isn't that much different than deciding on which stock in the Dow Jones to invest in. The same kind of research is involved. It doesn't matter if its a penny stock or Wal-Mart.

You want to know that the company you want to invest in has sound fundamentals. Look at all the balance sheets and income statements you can get your hands on. Obviously it's best to invest in stocks in which the companies are already showing strong profits. Also keep an eye on their assets, its always nice to see them growing every quarter.

A key component is also the charting of the stocks. If you ever back test penny stocks that have gone up by a lot, it usually broke a major resistance point before it did that. You always want to be on the lookout for that.

The other big factor is news. A big news event for a company can take it from a the depths of a penny stock to major player in the market. The next thing you know you?ll be reading about them in the Wall Street Journal.

Another important factor is the whole idea behind the company. Ideas, by themselves are sometimes are a bigger factor in stock movement than anything else. Many large cap stocks got to where they are just by having an idea that really clicked with the public.

It may seem like quite a difficult task trying to cover all these important aspects of trading, but luckily there is software that was developed to automate the process.

The people who invented the software decided to start an excellent newsletter service so people can stop spending so much time researching and more time trading. The software makes about three or 4 picks a month and has a great history of trades.

About the Author

Don't bother finding a list of penny stocks. Find all of the best penny stocks all the time with this excellent service.

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