Where to Find Penny Stocks
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.
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.