Everyone knows about penny stocks but knowing how to quickly find the best penny stocks to buy is essential. That’s especially true if you want to take advantage of speedy moves in the market.
Many investors speculate that penny stock prices can jump 100% or more with relatively small amounts of money. That’s very true, and you can make a lot of money with penny stocks if you know what you’re doing. The first step is determining where to look and what to look for. In this article, we’ll show you five easy ways to find penny stocks to buy.
Learn To Trade [Stock Market For Beginners]
How do you find penny stocks to buy? How can a regular person with a full-time job or limited funds manage to comb through the thousands of penny stocks being traded every day? Is there still a way to pick out the best and profit?
If you’re brand new to trading and looking for articles about the stock market for beginners, you’re in the right place. At the end of this article, I’ll provide you with more ways to hone your skills as well. For now, if you want to find penny stocks quickly and easily, here are five ways to do so.
Penny Stocks To Buy – Tip 1: Follow Penny Stocks News Sites (Like PennyStocks.com)
One of the best ways to find hot penny stocks is to follow certain news sites. There are a number of these online, but if you’re not careful, you could end up wasting all day reading through them and not find the information you need.
That’s why at PennyStocks.com, our entire focus is identifying emerging trends and providing quick, actionable insight into one topic specifically: penny stocks. While some news sites will discuss various types of stocks, if you’re searching for information on stocks under $5, this is the place to find it.
You can also utilize many of the tools provided right on the site. Each stock profile page offers more information, including:
- Analyst ratings
- Insider trading data
- Corporate filings
- Company news
- Share structure details like float & outstanding share count
- Price history
And plenty more important details you can use to your advantage when looking for penny stocks to buy.
Penny Stocks To Buy – Tip 2: Keep An Eye On Corporate Filings
In addition to penny stock news, you’ll also want to follow the inner workings of companies specifically. Doing this can help you find opportunities that the “average trader” might not be aware of. For instance, companies rarely announce when insiders or large firms are taking positions or adding to existing positions.
But if you know how to find insider trading information, you can “follow the money” and stay one step ahead of the crowd that only looks for news headlines. For this reason, we’ll actively put together articles about interesting insider activity:
- 5 Penny Stocks To Buy Now According To Insiders In 2022
- Penny Stocks To Buy Now According To Insiders In December 2021
- 10 Penny Stocks To Buy In December According To Insiders
The above are just a few examples of where to look and what to look for when it comes to insider activity.
Penny Stocks To Buy – Tip 3: Set Up A Google Alert For Specific Words And Phrases
This is an underutilized strategy that can help you find timely information. You can set up a Google Alert for any words and phrases you want so that anytime something new is indexed online with those keywords in it, you’ll receive a notification.
For example, if you wanted to know when a particular company is mentioned or articles are written about it, set up a Google Alert for the penny stock’s company name along with keywords like “announce” or “news.”
Google Alerts are free, and the alerts come to the inbox of your choice. It makes them one of the easiest ways to quickly find information about certain penny stocks.
Penny Stocks To Buy – Tip 4: Have Your Hand On The Pulse Of Social Media
Another good way to find what might be moving penny stocks is to follow the discussion on social media. This is a great way to see, in real-time, what’s happening with the companies you’re interested in and why they might be experiencing volatility. While this isn’t a stand-alone strategy, it will give you a good idea of what the retail market is paying attention to.
The good and bad thing about following Penny Stock Tweets or popular penny stocks on Reddit is that they’re usually updating in real-time, so it can be quite “noisy” in certain circumstances. If you see that people are suddenly tweeting about a penny stock you own, it’s usually because something is happening or the price has moved.
Before buying penny stocks, “because you heard about it on social media,” read what is being said and who’s saying it… be wary of false information and especially wary of “pumpers” overly touting an otherwise worthless stock. In line with our take on the daily conversation about penny stocks, we make sure to provide timely info on our @1PennyStocks Twitter feed to help cut through some of the noise and hype. You can also check out official accounts on Reddit, TikTok, Facebook, Instagram, and YouTube.
The bottom line, social media is the wild west. Much of the information has merit, but there is plenty that doesn’t. If you’re using social sentiment as one of the ways to find penny stocks to buy, make sure it’s one small piece of a much larger research strategy.
Penny Stocks To Buy – Tip 5: Watch Out For Scams
Lastly, one of the best ways to find the best penny stocks to buy is avoiding the bad ones; lookout for scams. Many people approach penny stocks with the mindset that because they’re so volatile, it’s “really easy” to make money. On the other hand, they might also think that because they’re “cheap,” it’s a guarantee they’ll make the big bucks.
If you want to find penny stock investments quickly, you have to be smart about it. Always remember…legitimate companies have more than hype to back them up, so don’t jump into just anything you see.
Penny stocks are low-priced stocks that tend to trade on lower recognized exchanges like the OTC Bulletin Board. They are often associated with pump and dump schemes, where individuals buy penny stocks at very low prices, promote the stock through false and misleading positive statements, and then sell (dump) their shares for a significant profit at the expense of unaware buyers who believed the false information.
The less recognized an exchange or a company is, the higher the possibility that you’ll run into scams. This isn’t to say that all OTC penny stocks are bad, and many go on to uplist to major exchanges to become formidable industry contributors. Nevertheless, it’s always prudent to be cautious and do plenty of research before putting your money anywhere.
This Is Where Your Journey Begins
This is where your trading journey begins. Hopefully, you learned something new today that’ll be helpful when you’re out there looking for the best penny stocks to buy. Below, I’ve also included a list of articles that are good as Stock Market For Beginners – style information:
- Investing in Top Penny Stocks: Why, When, and How?
- 10 Secret Ways To Find The Best Penny Stocks To Buy In 2022
- How to Buy Good Penny Stocks In 2022: Tips & Tricks For New Traders
- Penny Stocks & Frequently Asked Questions From New Traders
- How To Day Trade Penny Stocks & 9 Important Strategies To Learn Now
- Can You Buy Penny Stocks In An IRA? The Answer May Surprise You
- What Does Volume Mean In Penny Stocks?
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