How to Find Penny Stocks to Watch

Many people are trying to take advantage of some of the most recent changes in the stock market to develop their portfolio and make back some of the money that they lost in the past few years. You have may heard a few things about over the counter and pink sheets penny stocks, also called micro stocks or penny shares, and wondered what they were, how they are traded, and how to find penny stocks to watch.

Take a look -Penny Stocks to WatchThe first thing you should remember about any small stocks is that they do not have to be actually trading under $1.00 per share and. In general, most people consider any stock under the price of $5.00 per share to be a micro stock. If you think about it, that is a large percentage of the stocks that are trading.So, in other words, micro stocks are not necessarily fly-by-night companies, and many are simply companies whose stocks are either undervalued or have recently split and reduced in price. It is not unusual for a stock to split 2-for-1 or 3-for-1 when it hits $10 or $20, making it an immediate penny share.Another reason for a low stock share price may be due to a new and promising company on the bring of a great discovery (as is the case with many pharmaceutical companies) or perhaps the company is about to go public. Many times the information behind these small stock companies can be hard to find or you may not be able to find it at all.Finding penny stocks to watch is something you have to pay close attention to. You need to make sure to find the right penny stocks to invest in that belong to fully legitimate companies and not companies that were set up for the sole purpose of bilking investors in pump and dump schemes. You can make an awful lot of money from penny shares, but you can also lose your shirt if you are not careful. These stocks are considered highly volatile and can quickly shoot up or down in value.

Have a look-Penny Stocks to Watchs

So before putting any money into the next popular penny share, do your research and make sure you know full well who you are getting your information from. Penny stocks to watch are a little difficult to find, and if you are relying on the wrong sources, you could really get burned.