Penny Stocks as Short Term Investments

Everyone loves the idea of quick money and nothing is quicker than winning or losing playing the penny stock market. The volatility of the market is such that huge swings happen quickly and often without warning. While some investors may look at these as poor short term investments, others find the penny stock market to be quite exhilarating and do quite well at it.

While every investor is different those that do well with penny stocks seem to have one thing in common. Better information. A general rule of investing is that those with the best information tend to do well while those simply following the crowd may be heading over a cliff and they may not even know it.

Finding Good Short Term Investments

So where does one get the best information when looking at penny stocks as short term investments? A bad place to start is with all the free newsletters and Twitter feeds that offer penny stock tips. While some of the tips may have been good once, as soon as hundreds or thousands of investors see it and take action, the information goes stale quickly.

Insiders and Uncovering Good Short Term Investments

A better place to get started when looking at penny stocks as short term investments is with the group of investors that always has the best information. Those are the corporate insiders that are responsible for running the business on a day-to-day basis. They make the decisions that determine the future price of their company’s shares and obviously, they’re privy to information that the average investor will simply never have.

Of course, insiders cannot come out and blatantly tell the market when they believe the price of their stocks will rise or fall but the often do so in a more subtle way by their own trading activities. Smart investors will pay attention to what insiders are doing with any stock in their portfolio or with stocks that they’re thinking about turning into short term investments.

At we have an abundance of smart investors that take advantage of our proprietary data and resources. Tracking stocks in your portfolio has never been easier and plucking out those US penny stocks that may make good short term investments can actually be fun.


Reported on Oct 5, 2011

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