With the new classification system implemented by Pink Quotes, it’s now easier to profit from global penny stocks for many reasons. The category for international stocks is the aptly-named International OTCQX under which are two sub-categories, namely, the International Premier OTCQX and International Prime OTCQX.

All companies listed in this category must comply with the stock exchange rules and regulations of their home country. In addition, all filings with the Pink Sheets must be done in English. When these two aspects combine, the result is the ability to choose the penny stock companies faster and easier with the assurance that these are legitimate organizations.

Of course, there are other venues for buying global microcap stocks. We can mention the OTC Bulletin Board, the Nasdaq and the AMEX small cap markets as the more popular options for traders. With that being said, here are a few valuable tips to make your purchase of global stocks provide for a respectable rate of return.

Stick to Small Global Companies

Despite the general reliability of the stock exchanges in handling penny stocks and their issuing companies, it is still a fact of life for traders than microcap shares are the riskiest securities around. As such, it is important to stick to small investments in penny stocks in two aspects:

* Small amount of investments in one particular penny stock and only from the risk capital available
* Small percentage such that the penny stock forms only 10% of the total investment portfolio

You can then invest the profits from the microcap stocks into other securities like hedge funds. Juts remember to stick to the 10% ceiling.

Stick to the Popular

With global penny stocks, it is best to stick to what you know instead of venturing into unknown industries. With the high risk nature of these shares, becoming too adventurous can cost hundreds of dollars in losses.

We suggest looking into the high-tech and bio-tech industries for many reasons. These industries have untapped ideas, products and services just waiting for the right venture capitalist to provide the funds to go big-time. And when these commodities are introduced into the market, the value of the penny stocks that you have bought for pennies can now be sold for dollars – profits for you, of course.

Stick to the Stable Companies

However, just because a company belongs to the above industries does not necessarily mean that it is a good place to invest money in. You must perform fundamental and technical analysis on the company’s financial statements to ascertain its liquidity, stability and profitability on the both the short-term and long-term period. A trader that fails to engage in such basic analysis is exposing himself to unnecessary risks.

Of course, we also recommend going for the companies that have been around for at least a few years in the industry. It may sound unfair not to give start-ups the chance to succeed in the industry but keep in mind that it is the job of the penny stock trader to make a profit, not to help the company get on its feet per se since that’s the job of the venture capitalists, bankers and investors.

Indeed, you can make your penny stock trades stick to a profitable route. The most important things to keep in mind are to stick to small percentage of your total investment portfolio, to the popular and to the stable companies.