Finding a Hot Penny Stock
Submitted from Penny Stocks Blog
Everyone is looking for the next hot penny stock. In the world of investing, hot stocks and especially red hot penny stocks represent a stock that has significant volume. Promotion has become more and more transparent with the advent of the Internet and Sarbanes Oxley Act.
Promoters run in packs like wolves. The word wolves is not used by mistake, they are wolves looking for the next prey. You, Mr. and Mrs. Penny Stock Investor, are the prey. The fact is that there are certain promoters that really move stocks. Unfortunately, you have to know who they are. Finding out who they are using trial and error could turn a rich man into a poor man.
So, the easiest way to find a hot penny stock is to find a penny stock in which there are at least 3 promoters behind the stock. More promoters create more liquidity. It doesn’t assure that a stock price is going up, however, it does increase the probability of that penny stock becoming a “hot penny stock“. There are sites such as stockpromoters.com and qualitystocks.net that report active stock promotions. They’re not cheap but they provide a valuable service. Hot penny stocks provide no assurance of a winner but they do provide liquidity, which should minimize your risk.