ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Great Penny Stocks

Updated on December 5, 2010

Great Penny Stocks

The subject of penny stocks is always on my mind, and one of the common inquiries floating around the penny stock investment world is “What are some great penny stocks to invest in?” Well, we have to get a few things straight before we can even move into specific penny stocks to invest in. As a matter of fact, your trading strategy matters WAY more than any one stock you’re investing in. I keep drilling this over and over on my blog and in these hubs, and yet there are still people chasing the proverbial “pot of gold at the end of the rainbow” by expecting one hot penny stock tip to make them the next stock market millionaire. While I don’t doubt that there’s people out there that have actually done that very thing—you know, they received some hot tip about a particular penny stock, they threw a couple of thousand bucks into it, and then the stock went bananas and they ended up making hundreds of thousands (if not millions) of dollars in an extravagant one-time shot. This, in my mind, is not a bona fide “success story”—it’s more like the dude at the basketball game who got picked out of the crowd and happens to hit the full-court shot during halftime…yeah, he did it once, but will he ever be able to do it again? Highly unlikely. But you know, we here in America love the “rags-to-riches” stories, and it feeds our “romantic” vision of getting rich with little to no real work. I’m here to tell you, you can indeed make out like a bandit in the penny stock markets, but it doesn’t have to be a one-time shot; you can learn how to make consistent returns in the markets using specific trading objectives and strategies. I am more of a technical trader, which means that I get my kicks studying price charts to determine potential upside moves (or downside moves, for that matter).


Buying Great Penny Stocks

What I have discovered over the past 9 years of doing this is that stocks (whether penny or blue chip) move in somewhat predictable patterns, and if you’re aware of how to detect those patterns when they’re in formation, you can definitely profit from the price action of a stock. In the realm of penny stocks, these price movements can be quite mercurial, and you have to have some seriously nimble trading acumen to really hang in the penny stock markets. What I have also discovered is that although “great penny stocks” do exist, what really makes a stock great (or not great, for that matter) is the way that it is traded. So, even if you’re not proficient in picking the exact top or bottom of a penny stock’s price (and I don’t know who really is), if you can learn to trade penny stocks based on high-probability price chart patterns, you’re in a much better position to reap profits from the markets. One of the mantras, if you will, that I have adopted over the past year is the fact that it’s not so much the market, but the trader that makes the thing work. A truly great technical trader can trade anything with a price chart, whether it’s penny stocks, commodities, Forex, or anything else, because a trader who will operate in rigorous self-discipline and according to a written trading plan will almost always outperform some dude just trying to make the markets his “slot machine”. So really, more important in my mind than finding great penny stocks is becoming a great trader. Great traders can pull profits out of some of the most horrific market conditions, because they’re mentally nimble enough to adapt their trading style to the current market environment, instead of trying to force their cookie-cutter technical analysis voodoo on top of the market. Let me tell you, the markets will humble you if you have a chip on your shoulder, or if you think you have the “fool proof” investing system. But as far as actually identifying great penny stocks goes, what I look for in particular is a tight trading range, normally moving along in a “sideways channel” formation (it looks like a snake on a chart). If the stock’s price stays just underneath a certain price level and continues to slink along near that level, especially for more than a month straight, you have a great potential candidate for a move up once the stock’s price breaks through that seemingly “impossible” price barrier. To avoid making this an extremely long hub, I’ll just say that this is the number-one indicator or price chart pattern that I use to identify potentially great penny stocks; there are more, but I simply don’t have the time to list them right now. At any rate, I hope you enjoyed reading this.   


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)