Penny Stock Picks: How to find the best Penny Stock Picks.

Amateur investors looking to become rich overnight are attracted to penny stocks.

And who can blame these "traders". It is so easy to be deceived by a penny stock booster.

You get eMails with stuff like this: "Such and such company is going to be releasing news tomorrow afternoon about a new product that will be the first in its field and generate massive earnings for investors".

Or how about a well composed press release: "Company ABC releases new information indicating a breakthrough in ..." in whatever, it doesn't matter.

The point is you're intrigued and end up investing money that was not disposable.

Okay so how do you NOT get SCREWED by someone providing penny stock picks?

DO YOUR HOMEWORK! Due Diligence, Folks! Do your "DD".

Research the company. Start with fundamentals:

1. How long has the company been around?
2. Have they posted recent profits? Heck - Do they even release their earnings numbers?
3. Who is the CEO? How many employees? Is the company more than a P.O. box?

You do not want to be investing in any company that has its main address as a P.O. box, or someone working out of their garage without any proven product. And how many companies can make it big with just a few people? Some companies do not release earnings figures to the public, avoid these companies as well.

Research the technical aspects of the company stock charts:

1. Volume. How much volume has this company been trading at?
2. Price. What is the share price of the company?
3. Make sure this is not a "Q" stock. If the company stock symbol ends with Q, it's in bankruptcy. Avoid it. Run, flee, these are not for the faint of heart.

If there is hardly any volume there is a high probability you will be stuck with a stock if you buy it, and it will be difficult to sell it at a price you would like. (AKA you can become a "bag holder")

This is especially true, when the share price is very low and coupled with low volume it spells disaster waiting to happen.

And the worst of all, buying into a company that is in bankruptcy. Buying into these companies can be like going white water rafting, without a paddle.

I'm not saying penny stock picks provided by people are all intentionally deceitful, I'm just saying be careful and play the stock, don't be played by the stock.

Disclaimer: Trading stocks is risky. You can lose all your money if you are not careful. I am not advising you to purchase any stocks. All the content on this web page is only my opinion and is not to be regarded as any advise.