Before we dive into my recommendations of Penny Stocks, let's examine some fundamentals which typically affect the stock market and in effect penny stocks. These factors include:



  • Gold prices
  • Oil prices
  • Other minerals or precious substance prices
  • Agricultural byproducts, such a grain, wheat, etc 
  • Competitor companies
  • Other stocks globally
  • Currencies
  • Company news, such as financial reports, valuations, etc
  • Demand and supply for products and services
These are just a few of the fundamentals that influence the price of a stock. That is why it is so important to take the time to analyse the workings of the market. One should never have tunnel vision and focus on just one variable, but should spend at least one hour a day to watch recaps of news, visit sites that offer stock news, subscribe to a good financial magazine and always keeps your ears to the ground. Working as a team with other friends is a must, you can make a plan to look at different fundamentals and have meetings at least 2 times a week. In the coming week, I will give some advise on possible research sources that can be useful in the  analysis of stocks.

Financial quote for today: "Money in the bank is like throwing a brick in a well, it will never really rise in value."