Motley Fool News Feed
5 Tips to Trade Penny Stocks
Trading History: Examine a company's trading history and pay attention to spikes and dips to determine if there is a trading pattern.
Trading Volume: Look for companies with a history of high volumes of shares being traded at a stable consistency.
Industry Trends: When doing your research on penny stocks get an idea of the industry the company is operating is within.
Profit Margin: Probably the most obvious tip, one so obvious that it can't be skipped, is to look at the company's profit margin.
Exit Strategy: Go into your investments with a strategy. Know what your limits are and what makes the most financial sense for you.