How Can You Choose A Winning Global Penny Stock?

If you are looking for the next global penny stock to gain large profits overnight, there are several things to consider. It can be difficult to find information on some of the "hottest" companies in the overseas markets. It's possible to find knowledgeable advice, but there are several things you are looking for.

Understanding micro-cap shares

It's important to understand how the micro-cap or penny shares operate. These are the stocks that are traded outside the normal NYSE or AMEX, not having much value, which is why you will hear them referred to as "penny stocks". When it comes to a global penny stock that will make you the great profits you hear about, you may need a penny stock advisory newsletter, full-service brokerage service or an EFT that invests in them.

Education and unbiased, yet knowledgeable opinions

Most seasoned investors tell you to be educated on trading these highly-speculative, highly-volatile shares. If you are like most traders, you are constantly learning from experience. You can find newsletters that offer advice on global penny stock, but you need to be sure they don't accept payments from companies they recommend, meaning you should check to ensure they aren't actual investors, pumping their own stock value. For those that don't have time to do their own research, penny stock-picking software is available.

Warnings of highly-risky and highly volatile investments

It's possible to make gains of 3000%, but this can be a rarity that is based on possible buy-outs or a great product innovation. Keep in mind that any penny stock is a low-priced security of a very small company. This means it will be the start-up capitalization of a foreign entity you may not be able to find much information on. Look for high-volume shares because they can be difficult to sell when the stock prices plunge, besides carrying a high-risk factor.

Beware of unwanted emails or offshore brokers

A global penny stock can be highly risky, if you fall prey to an online fraud. There are reputable penny share newsletters and day traders will use penny stock-picking software to follow charting statistics and trends. Any tips that come from spam emails should be avoided, but you can find plenty of knowledgeable day traders and stock brokers that are willing to offer advice.

Imagine trading different, yet same day transactions

The appeal of a global penny stock is that you can become a day trader, even though you buy shares on one day and sell them the next. With the global marketplace, it's possible to get a jump on activities that are breaking news, before the markets open in the US. Because of time zone differences, a global penny stock offers the opportunity to participate in overnight profits, the same day.

Learn more about investing

Before you start investing in a global penny stock, you should read eBooks on day trading, watch video tutorials on the overseas markets or learn the basics of trading penny stocks. It's possible to take advantage of wild swings in the worldwide marketplaces, but get education or find trusted resources and advisors to help you with this high-risk form of investing.