 | 
| | Our Research MethodsBoth fundamental and technical analysis are important when evaluating penny stock investments. We do both at Penny Stock Insider and our members tell us we do it well. Analyzing a company's fundamentals reveals their long-term outlook and how well their management team and operations compare with the competition. We take a close look at their earnings trends, critical financial ratios, and so on.
While it's important to invest in companies that are fundamentally strong, you also need to be aware of the most opportune times to trade these stocks, and at what prices. By applying our technical analysis expertise, we're able to identify the best times for you to buy. It allows us to foresee any emerging trends, negative price fluctuations, and support/resistance levels. Stocks may jump in price then decline before rising again. This seesaw effect is the same regardless of the quality of the company. Timing can be critical when trading. Since stock prices fluctuate unpredictably rather than advancing in a steady straight line, the returns which investors receive are going vary greatly depending on their timing. Naturally you'd rather not buy a high quality stock when it's at the peak price because at some point it's going to go down again. Then again, sometimes it's pays to buy stocks from lesser quality companies during a down period and then watch them grow.
The best case investment scenario of course, is to have someone help you pick the best quality stocks when the prices are temporarily in a trough --and that's where Penny Stock Insider comes in. Our Hot List pick list has the all information you'll need for choosing winning penny stocks. Nearly all the stocks highlighted on our list are fundamentally sound companies. Most have positive earnings, (very uncommon in the penny stock market) they have relatively little debt, promising sales growth, desirable financial ratios, patented top-notch technologies, and more. However, like all other stocks, price fluctuations are impossible to predict. You can make money, or you can lose it. That's the importance of using technical analysis. When you combine the technical aspects with the fundamentals, you can narrow down the best picks, price trends, support levels and more. Yes, we know what you're thinking. "Technical analysis is too complex and confusing." We understand. That's why our Hot List report includes not only our recommendations for the best stocks to buy, it also comes with our buy and sell target opinions. We've taken all the dry numbers from our research and distilled them down into user-friendly language about optimal price ranges for trading.
These target tips are updated frequently so you get continuing guidance about trading the stocks you choose for our list. If a stock rises beyond our target ranges, we simply go back to the drawing board and make the necessary adjustments. Then we immediately pass that revised information along. The analysis information most applicable to you will depend on your individual investment goals. If you want a long-term investment (a year or more) you can dispense with the technical analysis and focus on the companies with the strongest fundamentals. However, it's always wise to apply some of the technical information so you stand a better chance of buying at the right time and price. If you prefer mid-term investments (less than a year), it's best to give equal consideration to both the technical indicators and the fundamentals. For day traders or other short-term investors, the fundamentals will play a lesser role in your decision making. In these shorter time frames, it's more important to focus on the technical aspects that drive the prices. Why not let Peter Leeds and his team do all the work for you? | |
I found your site in today's Barron's article. Your web site looks great and it is always nice to see that someone takes the time to research companies without having a banking relationship at hand.
