(EMAILWIRE.COM, November 18, 2009 ) Dallas,TX - Those who pick stocks may not always be accurate but over time, the average is a positive one. There are many opportunities to jump on hot stock over the years but learning which ones to jump on at the right time will mean wealth. Unwisely jumping on the wrong picks at the wrong time can cost you a lot.

Penny stocks are risky and a major factor when deciding what picks to recommend. Great effort is made to minimize risk but risk is always there, and more so with penny stocks. As a general rule of thumb, you should never invest more than 20 percent of your whole portfolio in penny stocks.

A number of factors used to calculate a good pick and you can use these factors on your own or simply follow our picks. A couple of these include the recent industry news, upcoming company marketing campaigns, and growth history. There are other factors used in this calculation.

Watching the industry of a particular stock is very important and the behavior of any stock depends on the direction of the industry it falls under. Penny stocks are sensitive by nature and if you own a penny stock in the oil industry and the price of oil starts going down, then you won’t be making much money. This is not to say that stocks can’t go up during an industry downward trend since they can but in general it is usually the opposite.

If you get your hands on a juicy piece of information about a company before it hits the news stands then you would make serious money. Usually, the best information to get your hands on is that a company is about to launch a new marketing campaign. Marketing means more stock awareness, which means more investors, which means more money. Stay on the edge and you will profit.

Past performance is not always a good predictor of future and however, if that history has been consistent and you have no reason to think that the future would be any different then past performance may be a great factor in deciding whether to lay down some money on a stock.

We have our own list of factors that we use to determine our best penny stocks and it is a formula that has been successful. Create your own list of factors to vet a stock or follow our picks and never invest with money that you cannot afford to lose.

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