Before putting your hard-earned money into penny stocks, you should learn as much as you can about the stocks you want to buy. You want to find penny stocks that will make you money. You'll need penny stock leads to do this. Leads are just the names of the penny stocks you might want to buy.
There are a lot of ways to find leads for penny stocks. For instance, you could search the Internet (blogs and forums), join a mailing list for penny stocks, or keep an eye on the news. The main goal is to make a list of 5–10 good leads that are worth your money.
Once you have a list of leads, you'll want to choose one or two of them. You'll need to go through your list and get rid of the stocks that don't meet your requirements. This process can be time-consuming, but in the end, it will be well worth it.
I look for things like the company's history, its business plan, the opinions of people and experts, its finances, its competitors, the board of directors' track record, company reports, and broker recommendations. Using the variables, I can quickly figure out if a certain stock is a good investment or not.
Once my list is down to one or two stocks, I'll ask other people what they think to make sure I made the right choices. It is very important to hear what other investors have to say, because most of the time they will have something useful to add to your research. You may have left out an important piece of information that other investors could point out to you.
Now that I have one or two stocks from my original list of ten, I'm sure I've done my research and am ready to invest. I use this method every time I buy penny stocks, and it has been easy and profitable so far.
