Best Penny Stocks

Penny stocks are like the wild card of the investment world. These low-priced shares of small companies promise high returns, but the reality is usually a rollercoaster ride. With huge price fluctuations, investing in penny stocks is a high-risk gamble where few lucky investors will gain huge profits and others lose their hard-earned money. Are you ready to bet it all? If yes, then how do you pick good penny stocks and what factors do you need to consider before buying penny stocks? Let’s know everything in detail. The concept of best penny stocks is always misleading. There is no such guaranteed formula for identifying stocks that will constantly outperform the market. There are some factors that can influence penny stock prices but they are complex and usually unpredictable. Before getting into details on factors and strategies you must consider while picking penny stocks let's first understand why penny stocks are so risky. Normally, penny stocks are traded on limited financial disclosure, which makes it hard to assess their actual value and financial health. These stocks are highly volatile, and the price fluctuations are too high. Another big issue with penny stocks is the liquidity, because of the limited trading volume you will face selling and buying difficulties. Now, let’s discuss what factors and strategies you must consider before picking good penny stocks. When it comes to factors you must consider picking penny stocks are like trading volume, P/E ratio, market capitalization, short interest and trading insider. The investment strategy is must if you are investing in penny stocks. You need through market research about the company’s financial health, business model and management team. Always avoid huge investments in these stocks and lastly always consult a finance advisor whenever investing in penny stocks. Whether you are new or a seasoned investor, it is always challenging to pick good penny stocks but don’t worry FindScan screener can help you in it. This is a user-friendly screener that allows you to set all the required parameters like P/E ratio, market capitalization, trading volume and percentage growth and provides you best screened list of potential penny stocks. Try this advanced screener today and add some of the potential stocks to your portfolio.