Understanding which are the top penny stocks and which ones will make you a significant profit is not as simple as just signing up to a service and reading a few blogs. To be successful on the stock market today you will require a number of abilities gained either through experience, research or education as well as a natural curiosity for scientific and technological advancements. You will need to be interested in and willing to follow news about economics, politics, historical trends, technology and industry and the intricate relationships that form the global markets today. Many stockbrokers and top penny stocks investors also find that they become more successful as they become truly interested in the companies they are investing in. While you can make quick fortunes that are just as easy to lose (it’s a bit like gambling) buying and trading stocks with no thought as to what you are doing, this is purely luck. A skilled stockbroker will tell you that it takes time and dedication to truly get to the top and live the dream.
Do I need to be a socialite?
Yes and no. There are many successful stock traders who have a great ability to network with people, but it all depends on what you want to do. A lot of stock traders are highly successful working from home using the phone and the Internet. On the other hand, if you want to take a more direct role in the companies you invest in, you might like to consider attending meetings and having a say in the development of the company. After all, the very concept of penny stocks was invented for new companies to gain revenue that they can use to invest in an idea or a patent that they have developed. The money gained from selling penny shares on the stock market is then used to reinvest in research and development of their product so that they can begin to market it and progress as a company.
Subjects you should be interested in
The first one is economics. You should have a good understanding of what the different types of commodities are that you can trade on the stock market. You should be able to see why penny stocks are high risk assets, while bonds and treasuries are not. You should have a good understanding of international trade agreements as well as what happens if bank interest rates fluctuate and if excise duties go up or down.
Secondly, you should have a good interest in technology and science. This means that following the news in the latest developments in industries is what you should be reading about. A lot of people assume that shareholders of Nokia in the late ’90s or of Apple in the early ’80s were purely ‘lucky’, but this is simply nonsense. They recognized a good idea that would work, kept hold of their shares instead of selling them off as the latest top penny stocks and made a fortune on the stock market when everyone started buying smart phones in Europe and personal computers in America.