What A Penny Stock Guide Should Look Like

Newbie and seasoned investors and traders alike will benefit from a penny stock guide albeit in somewhat different ways. While newbie traders need the microcap share guide to learn more about these types of investments, seasoned veterans will turn to the guide in order to keep abreast of the latest developments in the field. Besides, building one's wealth requires lifelong learning with the penny share guide being one of the most useful ways to keep on learning new tricks and mastering old ones.

So, what should you look for in a microcap stock guide? We suggest looking for these two most important attributes:

Author - The individual behind the guide must be a well-respected professional in the field of stock investments and trades. He must be known as a successful investor with a wide range of investments in his portfolios, all of which should be profitable on average. In short, look for an author who practices what he preaches. (If the author is Warren Buffett, you had better treat his penny stock guide as your new bible)
Contents - If you can secure a preview of the guide, then better for your cause. If not, your best resort is to read the reviews on the book. Professional critics of these publications will have strong opinions about the reliability of the book's contents, which can then form a large part of your decision to buy or not to buy.

And speaking of contents, the microcap share guide should ideally contain the following topics:

Definition of penny stocks from the legal, capital and practical points of view (Take note that, despite their prevalence as a profitable investment vehicle, there is no set definition for penny stocks)
Reasons for the inherently high-risk nature of microcap shares, said reasons of which includes thin trading, fledgling issuing companies and lack of regulation on the market itself, among others.
Venues for trading on the microcap shares including the OTC-Bulletin Board, Pink Sheets and the Nasdaq Smallcap Market, the last one of which is the most reliable.

Most important of all, the best penny stock guide provides for in-depth discussions on the most effective tools, technologies and techniques used in successfully trading and investing in microcap shares. Yes, it will mean hard work on your part to learn about fundamental and technical analyses, advanced research methods and other financial matters but the benefits will offset whatever sacrifices you may have experienced in the past. Knowledge is power and this is all too true when it comes to high-risk nano shares.

Just to give an idea of the nuggets of wisdom contained in the best penny stock guide, here are a few examples:

The Pink Sheets are the most unreliable venue from which to find penny shares for trading. The lack of regulation on the issuing companies is the main reason for such high level of unreliability.
Always do your own research on the stocks and the issuing companies. No matter how well the penny shares appear to be profitable because a financial guru said so, research is critical lest you become a victim of a pump and dump scam.
• Use fundamental and technical analyses to your own advantage. Treat the tools as if these are your best friends.

Indeed, the penny stock guide can be your best friend, if you know how to understand the principles contained in it.