Making big investment returns on Wall Street is not nearly as easy as it used to be. Now you have to worry about finding the right stock, and at the same time worry about the market as a whole going down. Recent history has taught many investors to be more cautious with their investing dollars. However, by being overly cautious, they are probably harming their long term bottom line. When the market beings to recover from a dramatic fall, the only thing you should be asking yourself is “What are the best penny stocks to buy”.

“Successful Investing takes the Right Mindset”

Penny stocks are defined as any stock that trades below five dollars per share, and they are your best bet in the market after a fall, because they are often the first to recover and recover the most. Once the waters have settled a little bit, institutional investors begin to want to take on more risk again, and the best way to do that is to buy up as many people penny stocks as possible. Some tips when buying penny stocks are:

- Always do your due diligence researching the company you are planning to invest in

- Watch the Stock Trends of the company you are thinking about investing in (Ie: is it on a five year high or low)

- Always take into account other factors that could affect your stocks value in the future (ie: Coal stocks, and the movement towards Green Technology)

The best penny stocks to buy are always going to be the ones that are going to make you the most money. However, this of course is making things too simple. How do you find the best penny stocks to buy in a crowded list of these stocks?
The first thing you are going to want to look for if profitability of the company. If the company is turning a profit or is at least somewhere close to break even, then you might want to dig a bit deeper into this story. Penny stocks are often untested and a large portion of them are actually losing money on the year. Generally speaking you want to avoid any stock that is losing money on a cash basis every year.
If you do find one that is making money or is projected to be making money in the near future then you have found yourself a gem. Next, check it’s debt. If the company is carrying more debt then seems managable, then your gem has just turned back into coal. You need a company that has a managable amount of debt and long term growth prospects.

These are just two of the factors to look for in penny stocks. There are many more. The best research is experience, so get out there and buy some well off penny stocks today. With time and practice and a little luck you should be well on your way to riches.