Hot Penny Stock Picks – What Is Hot and What Is Not?
If you have been involved in a penny stock market for a while, you know that usually you will get daily hot penny stock picks updates from a number of online screening services and your task is to weed through multiple penny stock companies to determine whether the are truly that “hot” or not.
A savvy penny stock trader automatically discards bad picks by following simple guidelines of bad penny companies. Truly hot penny stock picks will have strong performance history with clearly defined trading patterns. Bad “hot penny stock picks” will display very sporadic trading charts or nothing at all. Bad penny stock picks might have poor trading volume, large gaps in trading history or even its complete halt at times. Additionally, you might wait for longer periods of time when you buy penny stock online with bad stock picks that is an overall indication that you probably should stay away from them.
When analyzing your hot penny stock picks, watch out for penny stock trading red flags indicating that there might be a high risk of scam or fraud involved. For example, you are having difficulty gathering any information on the penny company or verifying “too good to be true” statements, their website either looks outdated or too flashy, the company has a history of changing symbols, names or even business fields. In addition, if you feel like all company’s PR efforts are only working on increasing a stock price and not company’s performance, it is a dead giveaway of “not so hot” hot penny stock picks.
Keep in mind that you are looking for a great micro cap company with honest business practices, strong sales, good management and innovative products when figuring out which hot penny stock picks are truly hot. No matter which field of business your penny company is involved in like pharmaceutical or biomass energy stocks, these simple markers will help you find a truly hot pick.