If you want to be successful when investing in penny stocks, regardless of which stocks you pick, the key is to perform proper and diligent research. A lot of people brag and say that they never waste time researching penny stocks online because they already have “a guy” giving them “hot tips”. In reality, however, if they happen to have had success with such a strategy, it was purely luck and nothing else. If you want to truly be successful with penny stocks, then you need to conduct an online research of such stocks. This is true not in the least because it is important that you have at least a baseline of understanding of what you’re doing. Luck will only get you so far, at the end of the day.

How to Conduct Research on Penny Stocks:

Once you start researching penny stocks online, you will quickly find that even performing studies can be quite a challenging thing to do. That is because there are so many different variables at play, and one of the key things you have to figure out is which variables really matter and when (they all matter at some point). Many people have to conduct research for years before they have any measure of success in making good predictions.

A lot of penny stocks are microcap stocks as well, and these are vulnerable to manipulation of stock prices. This is why it is also important that you use more than one source to conduct your research. If you only use a single website, you have a high risk of ending up wrong in your predictions.

Online Resources to Use:

Thankfully, there are a lot of online resources out there that you can use. The vast majority of them are also completely free. This means that researching penny stocks online becomes a lot easier straight away. Your main task is going to be to find the best investment website and the best financial information that is out there. Websites like the Motley Fool are known to be particularly good, not in the least because an entire section of their page is dedicated specifically to microcap stocks. Furthermore, they base their research on financial news reports and other highly respected sources, so you know that you can trust their predictions.

Other websites are also really useful if you want to build your understanding of penny stocks. All Penny Stocks and Penny Performers are good sources to go to. These sites are regularly updated, and they focus only on microcap stocks, which means that their information is quite broad.

Do also make sure that you sign up to newsgroups and online forums that focus specifically on penny stocks. There are also numerous Facebook and LinkedIn groups that you can join. Do remember, however, that in those groups it is all too easy for some people to present themselves as professionals or experts although that is not true. The golden rule should always be that you double check any piece of information that you get.