How do you know when a penny stock is undervalued or overvalued? If you are new to penny stock trading this is very important. The difference in your timing of getting into a penny stock can be either huge gains or huge losses. We prefer the huge gains.

What we are going to do today is look at a few examples so you understand when you should be getting in a stock or getting out of a stock. We are talking about penny stocks not big board stocks in these examples just to make that clear.

Let’s use some examples of penny stocks that made huge gains in 2009. This was a year of biotech, medical equipment and pharmaceuticals in the penny stock arena. So the stocks we will use are from these sectors. Read the rest of this entry »