Let's face it.
Many stock traders are looking for cheap stocks to buy which have excellent potential.
If you are one of those kind of people, then I really encourage you to give penny stocks a try.
I know they don't get the kind of publicity that the big name stocks get on CNBC, but the truth is you can't beat their potential.
There is also not a better investment for the new trader who doesn't have a lot of money to start trading with.
These are the kind of traders that will open a brokerage account for a couple thousand, not a couple HUNDRED thousand.
But the great thing about penny stocks is that you can build a pretty decent portfolio of small cap stocks with that couple thousand dollars that you opened the brokerage account with.
The toughest part really comes down to which cheap stocks are you going to buy.
But that scenario even if you are going to buy stocks from the Dow Jones.
It still comes down to learning about technical analysis and fundamental analysis.
That doesn't change with the size of the company.
You can find this information on almost any financial website.
There is one quick way to spot a cheap stock that is ready to take off.
It comes down to whether the market has enough liquidity or not.
If it does, then it's got enough "gas" to push the stock to mid-cap stratosphere.
Start by accumulation a big list of penny stocks that you want to keep an eye on.