There can be different types of trading penny stocks. Some investor uses the financial information of the company. Under this type of system you may have to study all the fundamentals about the company. You also have to see trade cycle of the particular industry in order to judge future potential of the company. Take the entire thing into consideration and after that pick the right stock for you.
Second Trading method would be use technical information to judge the potential of stock. Analyze the trends of particular stock, make a graph to see the repeating patterns and to see when to buy and sell the stock. This type of penny stock trading method doesn’t bother about companys product.
You may get confused which methods to choose, as fundamental study of company is as important as analyzing the technical side. If a company has no value in the market their stock doesn’t do well in the future. The technical method analyzes the past trends to indicate the future. This considers the actions of buyers and sellers in the stock market, analyzing the past trends in order to predict the potential future.read best penny stock strategies at http://www.berkeleydaily.org/penny-stock-trading-right-strategy/
So other penny stock trading method use the combination of fundamental and technical research to pick best penny stock, trading penny stock is not much different from trading larger stocks that are listed on major stock exchanges. You can do your own research to better judge the stock. It help you to make decision when is the right time to invest in penny stocks.
It is advisable to follow a trading system before making any decision; technical system helps you to see how stock moves on the other hand fundamental system helps to judge companies financial position. These trading methods help you to make right decisions.