How to find penny stocks that can move 30, 40 or even 300 percent in value in short order. It's no secret and fairly easy if you're willing to put in a small amount of time, effort and throw some money in the ring!
We've covered quite a bit to this point and now's it's time to find out how to find penny stocks that are going to have the largest profit potential in the shortest amount of time.
In earlier lessons, we covered some tools of the trade to help you find penny stocks, with some costing money and others not. At a minimum, you need to familiarize yourself with OTC Markets and iHub. OTC is completely free and iHub has a both a free version, plus a subscription options for more access.
I can't cover every possible option on how to find penny stocks as that list is endless, but I will cover some of the ones that have proven extremely profitable for me over the years...Some are paid for and others are free. Do what your budget allows you to do and feel free to contact me if you have any questions...
I stress, do not buy into the hype you will read on iHub...There is a lot of it! Most everyone on iHub has an agenda and that is to profit from a stock going up or going down. Drill that into your brain!!!
That being said, there are times where a post brings significant value and that is where there is an external link to a DD (due diligence) source. Basically use other posters on iHub, some who have spent countless hours researching a stock, to find much of the good research for you.
On the flip side, don't ignore the negative Nancy's (bashers) either...They can alert you to the negatives (why they do it is for their own reasons, not simply because they are genuinely good people...) and anything either of them can bring to the table with legitimate links, to legitimate sites, can help you cut down on your DD time.
The most important area of iHub to get familiar with is the "Hot" section (It's second over in their horizontal navigation bar). This is where you'll find:
OTC Markets is the "penny stock authority," not the authority in the way the SEC is, but they run the market. It behooves you to learn how to navigate their site.
Some key areas of their site are:
Free is free, but free usually comes with limitations! Paid resources will help to narrow your channel and get you focused in on stocks you're really interested in. Don't get me wrong, iHub is an amazing source to find penny stocks, but if you took iHub along with:
Their charts stink, their Level II is good, but their news scanner is second to none! There are other ways to configure your account to do significantly more scans, but I've always loved them for their news, News, NEWS!
If you can get familiar with their clunky, limited help system (this has improved recently), then this IS the way to go. To get news a minute before the rest of the market is a huge advantage...Especially for the style of trading I do (majority anyway) and that anyone else, with a 9-5 job, might.
I can't imagine how to find penny stocks without their service...Well, I can, but I wouldn't find nearly as many with as little effort. iHub has always been great for momo plays and so forth, but I like to lead the herd, not follow them!
My favorite news scans are for stocks between .002 and .08 with average daily volume of 300,000+.
Once the news comes in, you're looking for:
If you're the first to the party, you may want to dip your toe in the water with a small buy and see how the stock responds to the news before putting more money in. If you were a little late to get in, then be sure to buy on pullbacks...
Don't chase the herd, lead the herd! It's always best if you are the first one to the party:)
Here is another exceptional source for you to find penny stocks via technical setups. There aren't many sources out there that take the time, money or effort to make OTC stock charts available and have such a nifty screener to narrow your search down to stocks trading for pennies or less.
Some of my favorite scans are "Golden Crosses" (where the 50 dma breaks through the 200 dma), MACD crossover, flag patterns, pennants, bottom reversals and a few other technical setups. Trust me, there are many scans you can customize, but those are some of my favorites. In addition, they have tons of training too.
Paid Chat Rooms
This is a great way to find penny stocks, but can get a bit pricey. Well worth the money though if you find the right group, have the time to watch during the day and can find one good play a month to cover the cost of the service. My personal favorite is Promotion Stock Secrets.
I understand that they may be out of your budget, but these guys are good...really good! You can also follow the StocksA' picks as I'd like to think we are pretty damn good too and our picks are free!
We're not as active as you'll find there, but we try to bring 2-4 BIG winners per month and daily recaps on some of the hottest penny stocks in play. So let us help you to find penny stocks, join our newsletter here.
Quite frankly, there are a number of ways to find penny stocks, but between iHub, EquityFeed, StockCharts, Promotion Stock Secrets and StocksA', you'll have the buzz, news and technical side of trading cornered. Be sure to check each one out and take advantage of any free offerings they may have.
Time to move on from learning how to find penny stocks to finally buying something already - maybe a taco, I'm getting hungry - so let's take a look at how to buy penny stocks and we can make some money already!