Because it’s important to profit from your investment while you preserve your capital value investment, it’s necessary for you to know the good penny stocks to invest in right now. The volatility of small cap stock trading is higher than average, so you can expect the top stock picks to quickly vary from one day to the next. Most stock market investors are hoping to earn a large amount of profits in just a short period. Some succeed, while many others fail miserably. Penny stocks are the stocks of companies trading at very low prices, and are commonly traded by investors unable to buy stocks from giant companies. The potential of huge gain from these small cap stocks in just one trading session attracts many investors.

In your efforts to identify the good penny stocks to invest in right now, you have to first consider factors such as gross profit ratio, net profit ratio and also earnings, so you can decide whether the stocks have a potential for generating profits. You need to look for these penny stocks and regularly track their movements for purposes of studying their chart patterns. Also, you need to investigate the track record of the companies to see if they’re able to obtain the growth and expansion they initially targeted. As much as your research resources would allow, look into the market demand for what the company provides, be it a product, service or idea.

Another factor to determine which penny stocks you should invest in is the possible future growth of companies. Most small cap stock companies are small businesses without much cash. Many of these companies have high debts, borrowing to keep their businesses going and causing them to have a huge outflow of money for interest payments. Typically, these companies pledge their holdings to financial institutions or banks in order to raise money. If these companies don’t earn much, the lenders will then own the pledged shares and the companies can go down at any time. Therefore, you need to pick companies that have free cash flow and surplus liquidity for investment when you deal with penny stocks. You also need to research thoroughly to see if they are sustainable regardless of the state of the economy.

Here are the good penny stocks to invest in right now as recommended by stock investment experts:

Where To Get Legit Penny Stock Recommendations?

I’m currently recommending a number of companies that trade on the OTCBB. If you want to hear about my recommendations, then sign up for my newsletter called “Paul’s Penny Stock Insider” by clicking here.