The only thing harder than picking a penny stock to buy is picking when to buy penny stocks. It can be very hard to know when to buy penny stocks, but with a couple good methods, you can pick when to buy penny stocks much easier. The following are methods I use all the time to pick when to buy penny stocks. The methods I am about to show you are very simple and are overlooked by many penny stock investors out there.
The first method I use to help me decide when to buy penny stocks is trends. Trends are patterns in a company’s stock price over a period of time. A good trend would be one that jumps up from time to time, and then slowly goes back down over time. This information allows you to pick the perfect time to buy into a stock at its lowest price. This is a big help when trying to decide when to buy penny stocks for the best profit. It is so very simple but overlooked by about 90% of penny stock investors.
The second thing to look out for when applying this method is trade volume. If as company has few daily trades, its trends will be unlikely to be constant and that makes for a high risk investment. When picking when to buy penny stocks, you want to find a company that has a large number of daily trades. A high number of daily trades make a very predictable trend that you can use to pick when to buy penny stocks.
Once you have found trends in many companies, you can start investing in them at low points, sell at the peak, and repeat. You will have many companies (the more the better) so you will always have a good investment waiting for you. This is how you can gain financial freedom just by knowing when to buy penny stocks.
To learn more, consult with the experts at Paradigm Capital Management, Inc. a hedge fund managing firm. The firm was founded in 1972 and is based in Albany, New York with an additional office in New York City.
To learn more, visit here: http://www.paradigmcapital.com/