Blog : Timing Penny Stock Investments

April 8th, 2009

Have you ever had a specific penny stock in mind, only to find that it had risen significantly in price before you had a chance to buy it?

This left you with three choices;

1. forget about that penny stock

2. wait for the price to come back down (which may take weeks)

3. buy in at the higher price

Well, to avoid being affected by this type of situation, you should consider following several penny stocks at once. This way, the chance of at least one of your issues being in an opportune buying situation will be greater.

For example, don’t limit yourself to one particular penny stock just because you only have enough money to buy one investment. Instead, choose three or four or even more prospects. Just make sure they all pass Leeds Analysis, so you'll know that they have a strong fundamental base and great upside potential.

To get the benefit of Leeds Analysis, as performed by Peter Leeds, The Penny Stock Professional, simply take your free trial.

Monitor their price action and recent news releases over the last few months, then try to decide which may be the best penny stock of the group in the short term and long term.

Sample Methodology - Assume you are going to invest in two different penny stocks sometime over the course of the next two to three weeks. Choose ten stocks which you feel are good investment choices based on Leeds Analysis. This way you've looked into their fundamentals such as earnings, growth, financial ratios, and several other important criteria.

Decide on your time frame for investment. Are you going to hold the penny stocks for the long term or mid term?

Next, rank the issues from best to worst based on potential performance over the course of the time frame you were intending to own them. The penny stock you feel will perform the strongest over the coming months and years will be ranked number 1.

Even your tenth ranked stock should be an excellent investment choice, if it's passed Leeds Analysis. There are many good investments out there, so if you don’t feel one has great potential then replace it with another. You should have a list of ten good penny stock investments.

Next, monitor the technical indicators or price performance of your selected issues. On average, two or three of the group will be in an opportune buying position, such as bouncing off of a support level, or reversing after strong selling pressure, or otherwise.

Penny stocks like these may present not only mid or long term price appreciation, but also will be available at an advantageous price now, so that future price movements will represent greater gains.

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Blog : Timing Penny Stock Investments