ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Where to Find Penny Stocks

Updated on August 25, 2009

Where to Find Penny Stocks

So you’re browsing the Web, trying to figure out where to find penny stocks, huh? It’s no wonder…penny stocks provide some of the most fantastic leverage of any investment vehicle available today, when they’re done right. And finding them is easier than you might think. Utilizing the internet is one of the most efficient ways to find penny stocks, because you can tap into web-based tools such as stock screeners and other sites that provide in-depth information about penny stocks to help you make an informed investment decision. One thing that I want to lay out before we even begin, though: I have to slap a big “caveat emptor” (buyer beware) on all things dealing with penny stocks, due to the lure of easy money that so often surrounds penny stock investing. Penny stocks seem to have a sort of “mass appeal”, even for people that are not frequent participants in the stock market. I think it has something to do with the usual “rags to riches” stories that all of us are familiar with, and that have been touted on infomercials and in penny stock newsletters everywhere. The usual spill of “This guy bought So-and-So Company’s stock at only 10 cents per share, and sold it later for $50.00 a share, and made millions!” still, almost every time, convinces us that we’re going to do the same thing. And you know what? It’s possible—very much so. But it doesn’t usually happen on the first try, or on the first 30 tries, for that matter. Finding profitable penny stocks is a learned skill, just like any other skill such as riding a bike or tying your shoes. Knowing where to look is just as important as knowing what to look for. Most of the time people automatically think of the Over the Counter Bulletin Board (OTCBB) when they think of penny stocks, and for good reason—an overwhelming majority of their stocks qualify to be called penny stocks, i.e., they are worth less than $5.00 per share, and have a very small market capitalization, usually less than $100 million. These are some of the so-called “standard” definitions of penny stocks. So that would definitely be the first place I would advise you to look—check out their website at otcbb.com.

Image courtesy of Microsoft Office Clip Art
Image courtesy of Microsoft Office Clip Art

Find Penny Stocks Online

One thing to do to give you a decent hint about what you’re getting into…once you go to the home page for the OTCBB exchange (otcbb.com), check out their “Market Statistics” section where they give you options to filter out stocks by % gained, % lost, $ gained, $ lost, or most active by volume. Click on the “% gainers” option on the drop down menu. You’ll see one-day returns ranging from 100% to over 1,000%. Yup, you read it right—there are some stocks that have gained 1,000% in one trading day. Now tell me again, why were you messing around with blue chips? Of course, let’s not be deceived, either—these types of opportunities are not the easiest to spot, market manipulation can be prevalent (and heavy), and some markets are very illiquid, meaning it would be very hard to get filled at your preferred order price, so you just might be sitting with a loss or nothing gained at all. OTCBB stocks are notorious for shaky and sporadic volume. So, I would also suggest that you look at another exchange that’s less well-known for the penny stocks that are listed on it, but it still provides solid opportunities, and that’s the NASDAQ exchange. Being listed on NASDAQ is definitely a step up from the OTCBB as far as a company’s credibility is concerned, and many of the stocks that are currently on the OTCBB were de-listed from NASDAQ. This goes to show you that the listing standards and regulations are much stiffer for NASDAQ, which translates into a probably much more solid company that’s backing the stock. Now don’t get me wrong, even some of the bluest of the blue chips on the NYSE have fallen off the face of the stock market planet, but at least your odds of having a solid company increase with that company being listed on NASDAQ. What I would do is go to NASDAQ’s stock screening tool found here and I would run a query for whatever criteria you want—you’ll see all the different choices when you go there—they are too numerous to list here. But once you refine your search by price, volume, P/E ratio or other criteria, simply click “Run Query” and it will show you all the stocks that fit that criteria. This, my friend, is your first step towards learning about where to find penny stocks. Use these online tools and you’ll have plenty of information to work with.

Comments

    0 of 8192 characters used
    Post Comment

    • SteadyHubs profile imageAUTHOR

      SteadyHubs 

      9 years ago from Georgia, USA

      True indeed, C. Whitaker...many of them are pink sheet issues that are extremely light on company info--think of the movie "Boiler Room"...LOL!

    • C. Whitaker profile image

      C. Whitaker 

      9 years ago from Indianapolis, IN

      Good information, it's tough determining a good penny stock, since so many of them aren't filed with the SEC and listed on an exchange, there simply isn't much financial background provided.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com 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: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    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 googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    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)
    Marketing
    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.
    Statistics
    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)