How to Identify Cheap Hot Stocks to Make You Rich!

If you could identify cheap hot stocks while they are just beginning to warm up, you would have the opportunity to make huge profits and get rich. Following are the most important factors and tips that you need to look at when trying to find cheap hot stocks:

1) Check the company background: Before purchasing a new share, you should check the company's history and financial stability. Look for a company with increasing revenue pattern and with very little or no debt.

2) Pricing: Is this stock under-priced or overpriced? Before you buy, you need to analyze the stock of a company to determine whether it is overpriced, under-priced or fairly priced. You can calculate the Price/Earnings to Growth (PEG) Ratio or the Price to Earnings (P/E) Ratio to determine a stock's value. If the PEG ratio is less than 1, then the stock is under-priced and it is considered a good buy. If a company's stock has a low P/E Ratio, it indicates that the stock is relatively under-priced in the market.

3) Get advice: Find a stock forum with expert advisors. There you can find news about companies, stock trading tips and advice such as which stocks are hot and which stocks are not, and other useful information.

4) Read the latest newsletters: You should subscribe to quality stock newsletters that will alert you to trends, reports, industry news and useful resources. These newsletters do the research for you, give you powerful investing tips, identify hot penny stocks with good potential and give you buy and sell signals.

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