Best Penny Stocks

Determining the best stock to buy would be much easier if it were possible to see into the future. Knowing what industries are in a bubble and which are really taking off into the stratosphere would be extremely helpful in determining which companies to invest in and which to avoid. The truth is that with enough research, it is possible to make educated guesses about these kinds of things.

The economy operates according to mathematical principles (specifically, stochastic calculus), and also tends to repeat itself. That is, by studying enough math and history, one can become much more able to profit from movement in the stock market.

Penny stocks are a hot topic. Essentially, they represent one-cent increments of a company. The best penny stocks to watch are shares of companies that are offering their shares so cheaply because they are small and possibly new, and not because they were once large and powerful but have become financially troubled. This is a real possibility, as penny stocks are not governed by the same regulations as blue-chip stocks.

Penny stocks in 2012 are a potential for high gain, but at high risk. The best penny stocks in 2012 will appreciate up to 800% and higher, but many of the rest will depreciate to zero, as the companies they represent go under. Research is the key. Know what penny stocks will appreciate by learning as much as possible about the companies they represent. If a company is currently making a profit and has a low debt to income ratio, it’s possible that increase in growth is right around the corner.