…stocks, of course. On the surface quite some things point away from the small stock markets. The better a company is capitalized, the more information about it is generally available. Chances that this company is still in business somewhere in the future are also better. Both makes small stocks very volatile. So why just not concentrate on the bigger ones?
Smaller stocks have a secret – but a well known one. It just gets forgotten all too often. They can rise substantially in a very short time. A stock that doubles or even explodes 10-fold is no surprise in these markets. Of course a move into the wrong direction is evenly possible.
The nice thing here is that they can not go below zero, which limits the maximal loss to 100% but they may produce a gain of say 1000%. It is this fine asymmetry that makes the right candidates so interesting.
There is just a little problem… and that is the meager amount of available information. Worth a try may be this site that offers five different methods of selecting the right stocks together with alerts. Often the signals will disappoint, but the asymmetric price movements are on your side.
The above is an interesting chance to develop your penny stock bingo game into a more serious business. It requires no real work on your side, because you get signals. However, there is one thing to check, namely whether these picks indeed resemble the entry situations that the service is looking for. Otherwise this may be more a pump and dump scheme (the owner of the site claims it is not).