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How To Choose Winning Hot Penny Stock Picks Regularly

Penny stocks are options which can be bought or sold for less than $5 of worth. Though most penny stock millionaires claim to act purely on gut to make money choosing hot penny stock picks, you can become a millionaire by reading on the list of insider secrets we posted below. With these organic penny stock picks advice at the helm of your trading campaign, you can hope to make a lucrative trade consistently.

Tip#1: Look at the performance of the company

There are two strategies to gauge the performance of a company and thus, whether the stocks available are hot penny stock picks or not - momentum trading and the contrarian plan.

According to the momentum trading plan, looking for cheap penny stock picks that maintain a gentle rise with both stock value and volume over a 30 day period are great bets to trade on. When you buy the stock from such companies, you are rest assured about the trends continuing to rise, until they reach a break point, when you can trade your stocks for huge profits. Identifying these hot penny stock picks is the difference between making meagre money and handsome profit with penny stock trades.

The contrarian plan assumes that the public over-reacted to a certain event of a company. For instance, if a reputed bio-chemical company suddenly finds itself in a lawsuit, the shares plummet immediately as panic takes over. Before you join the bandwagon, make sure you carry out an intensive background check about whether the company is bound to suffer from such a tragedy or would jump back to business after a lull. Most times, huge companies are unaffected by minor charges, so use the contrarian plan to wait and watch. Moreover, if you are sure a company would bounce back, consider buying cheap penny stock picks from their options and profit after a few months.

Tip#2: Research is the key

You will need to research a lot before you zero in on organic penny stock picks for profit. Avoid reading every low-key information source and look to standard trusted sources that provide you with legit information about penny stock picks selection tips. You could also visit forums and join in when experts and market insiders discuss which stock options are hot penny stock picks at the moments and which aren't.

Tip#3: Diversify your stock options

Do not put all your eggs in one basket - make sure you consider at least one medium-risk/high0risk stock return option and then bet on many other cheap penny stock picks. Carry out the risk/reward ratio and decide which hot penny stock picks you'd want to trade in.

With this expert advice at hand, we're sure you'd never go wrong with your penny stock picks.

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Daniela has vast experience in writing articles on Penny Stocks. For more information on Penny Stock Alerts, visit this site