clipped from: www.pennystocksinvest.com The phrase “penny stock investing” can be misleading. For the most part, penny stocks are more often traded for short term gains rather than held as investments over the long haul. Still, the words trader and investor are usually interchangeable. The chance to make great money with the pennies usually comes with popular stocks that have high daily volume.
What savvy traders look for are active companies that release a lot of news, news that creates momentum. In the penny stock world momentum is often referred to as “momo.” And a hot stock moving higher might be called a momentum or momo play. Experienced penny stock investors are aware of companies that like to release a lot of news and are often able to earn high profits as a stock moves higher on reports perceived to be positive. Watching a hot penny stock move is one of he things that makes penny stock investing so exciting.