Identify the Next Multibagger Penny Stock

You can easily identify the best multibagger penny stocks provided you follow the fundamental tips for it. 

Make an extensive research that includes the company’s fundamentals, financial performance, and observe the penny stock chart analysis.  

Make a keen note of the financial analysis, and judge the parameters like, RoE, RoCE, EPS, stock’s book value, and P/E ratio. 

Keep an eye on the market psychology, equity analysis, and factors that enable the growth of the share prices, steadily or abruptly. 

Penny stocks can lead to colossal failure therefore be prepared to lose money and to reduce the risk, make proper risk evaluation. 

Check for Over-the-Counter trades for Penny Stocks:

You need to make a cautious study on the penny stocks for making a purchase of it. Many penny stocks go unrecognized for a couple of reasons, they hold limited exposure, most of the trading is undertaken over the counter, OTC. 

Market Capital : Ranges between Micro cap and Small Cap 

The size of the company’s capital can range from micro to small cap. It may be from INR 10 crore to INR 100 crore. 

If you identify good penny stocks and make an early investment in the undervalued prospects then you are most likely to benefit from it. 

Adopt Diversified Portfolio to Avoid Penny Trade Risks 

Wild trade swings in  the markets increase the potential risks and you are advised to adopt the diversified portfolio, a move towards risk management. 

Portfolio diversification does control the impending losses because of high market volatility and the best practical ways to reduce losses to a considerable level is to invest your trading capital into different portfolios, such as, banking, power sectors, industry, etc. 

Your investment into the penny trades can be up to 10 percent of the total trading capital. 

Note:

As a beginner, you may require good guidance, and you can opt for social media, the best online platform for learning, and for learning the fundamentals you can grasp from the Penny Stock Youtubers. 

For more sensitive information on Penny Stocks you can visit the official website of the National Stock Exchange

Try to get enrolled with discount stock brokerage companies and gather first hand information on all aspects of penny stocks before you enter into, after opening of the stock market bells. 

Some of the leading stock brokers who are providing penny stocks advice can be found in Zerodha, Upstox, ICICI, Angel One – stock trading – zero brokerage on equity delivery. 

Most of the brokerage companies ensure you in opening a demat service account for free.