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Hot Penny Stocks – What you MUST know TODAY

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Title: Hot Penny Stocks – What you MUST know TODAY


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Penny Stock Research The Truth About Penny Stocks
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  • Welcome to Penny Stocks Research. Every day we
    bring you the unbiased truth about Penny Stocks.
    For more information on penny stocks please visit
    our website
  • PennyStockResearch.com

3
  • Hi, My name is Aaron and Im with Penny Stock
    Research, today were reviewing our recently
    published article

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Hot Penny Stocks What you MUST know TODAY
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Hot, Hot, Hot Penny Stocks should you invest?
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There it is the constant drone of novice traders
looking for hot penny stocks to buy. Every time I
meet with investors, talk to friends, or even
mention that I trade penny stocks, I get the same
question What are the hot penny stocks to buy
now?
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What a loaded question. Trading penny stocks is
much more than just jumping on the hottest penny
stock out there. You cant just pull a list of
hot stocks and buy one or two and expect to make
money.
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It doesnt work like that. Sorry to burst your
bubble. How do hot penny stocks really
work? Stick with me, and Ill show you what Ive
discovered
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What Are Hot Penny Stocks?
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So, lets start with the basics. What are hot
penny stocks? These are companies who have seen
their stock price move in a big way. Take this
company Medical Marijuana MJNA as an example.
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At the end of 2012 and the start of 2013 there
was news big news about the legalization of
pot or Marijuana in Colorado. Many saw this as
the opening to a new industry and there was a
rush to make investments in the space.
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As you can see, for a time, MJNA was one of the
hot penny stocks everyone was following.
Volatility in the stock spiked and the price ran
up.
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As a hot penny stock, the price skyrocketed!
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There are thousands of examples, but let me share
a secret with you What many penny stock
investors dont realize a hot penny stock isnt
always going up. Sometimes that hot penny stock
goes down too!
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Ill share some of those examples with you in a
moment. But youve got to realize VOLATILITY is
what makes penny stocks hot. Its the big move
in the stock price that gets everyone worked up.
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But pause for a moment, and ask yourself what
causes a hot penny stock to move? What creates
the volatility? In order for a big move to take
place you need one of two things
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A lot of sellers if the penny stock price is
falling. Or, A lot of buyers if the penny
stock price is climbing.
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Now heres where youve got to use your brain
power what drives a lot of people to either buy
or sell a penny stock? News, Right? Not always
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Why Are Penny Stocks Hot
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The hottest penny stocks have a few things going
for them the number one mover of a company is
News. Good or bad news moves penny stocks in a
big way.
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Things like blowout earnings, new deals,
partnerships, new customers, new products, new
financings there are millions of different news
stories that can juice a penny stock higher.
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For Medical Marijuana MJNA it was a new piece of
legislation that pushed that stock up! The same
applies to the downside too.
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News about missing earnings, lowering
expectations, deals gone bad, partnerships
breaking up, customers leaving, product problems,
new competition, running out of cash
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I could fill a book with all the things that can
go wrong and the longer you trade stocks, the
more youll see a hot penny stock fall apart But
is news the only thing driving massive buyers and
sellers tothe hot penny stocks?
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No Of course not. In additional to real news,
we have his ugly cousin Rumors. Rumors are nasty
little stories spread predominantly by teenage
girls and Stocks Market Scam Artists looking to
take your money.
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Im not trying to scare you, Im just sharing my
experience. Ive seen rumors spread by greedy
brokers, by chat room participants, by fake press
releases, by dishonest newsletter writers, and by
management teams.
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Rumors, like real news, come in millions of
different forms. It can be stories about being a
takeover target, games about partners and what
theyre really doing, outright lies about product
capabilities, and even fraud over financial
statements.
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Normally, the rumors are started by Pump Dump
Artists.
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Youve heard me rally against these jerks time
and time again. Their favorite target is penny
stocks. They buy a bunch of stock, spread a
rumor, drive the price higher then dump the
stock on the unwitting. Of course THEY cash out
in a big way.
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These rumor spreaders are so brazen they dont
even hide what theyre doing. Often they say
it right in their legal disclaimers. You can
learn more about these Devils of Wall Street
here
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But before we move on, let me show you what a
pump and dump chart looks like
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Unless youre really lucky youre losing money
in a pump and dump deal no doubt. Now you know
why penny stocks get hot and what drives the
buying (or selling) demand behind these penny
stocks.
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Im sure many of you are wondering
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Why Doesnt My Broker Tell Me About Hot Penny
Stocks?
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HAHHAHAHH. Sorry. Let me compose myself
Youre kidding right. HAHAHHAhahahha. a-hum
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Your broker will NEVER tell you about hot penny
stocks today, tomorrow, or ever! Look your
brokers job isnt to make you money its about
making HIM money and making sure he doesnt get
sued in the process.
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Think about it if your broker puts you in some
common everyday mutual funds, an ETF, or a blue
chip stock or three he gets paid, and youre
invested. Barring a massive market meltdown,
youll see your investments plod along never
really making big money but never losing big
money either.
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He gets his paycheck and avoids getting
sued. Contrast that with a broker who tries to
amp your returns with hot penny stocks. He tries
to make some suggestions then his suggestions
take a loss or two. It will happen.
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You will lose money every once in a while with
penny stocks thats part of learning to trade.
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In that case, our dear brokers novice investors
complain about the loss. They get an ambulance
chasing attorney to file a lawsuit. The Broker
gets slapped down. The broker dealer quietly
settles the lawsuit. And a few months later your
broker friend is looking for a new job.
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Hes NEVER going to recommend hot penny stocks to
watch EVER. Its just too risky for him. Hot
penny stocks are 100 incompatible with brokers
and their advice. So,If you want to trade hot
penny stocks, youve got to do the work yourself
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How ToFind Today's Hot Penny Stock
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If you want to find the hot penny stocks for
today, youve got to look at the big movers of
the day. Hop on over to your favorite stock
screener and start trying a few different
searches. Im partial to the FinViz.com site.
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I call it my Hot Penny Stock Finder! Their tool
is great and free. But it doesnt cover some
of the smaller stocks traded on the OTC markets.
Maybe theyll add that detail in the
future. Nevertheless, its a great place to start.
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Look for the stocks that are making big moves.
Look for those near 52-week highs or those with
big moves over the last week, month, or quarter.
Eventually youll come up with a hot penny stocks
list.
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This is where you start to look for your own
ideas. Maybe you scoop up a few of these penny
stocks or maybe they lead you to an industry
thats super hot right now.
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If you see the same types of stocks popping up
over and over again on your screen, pay
attention! (more on that in a moment)
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But thats only half the battle The big money is
made by finding the hot penny stocks for
tomorrow. Thats a tougher nut to crack
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How To Find Tomorrow's Hot Penny Stock
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This is where the crystal ball comes in handy.
Just look into your glass orb and say the magic
words. Youll be rewarded with the names and
ticker symbols of tomorrows hot penny stocks.
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Is your crystal ball missing? Well, to be honest,
mines never really worked so dont worry there
are other options. There are a few things you can
do to try and identify the future hot penny
stocks.
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First, look for hot industries. Heres an
example
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The bottom line in red is the Dow Jones
Industrial average. As you can see since the
beginning of 2014 its climbed about 10. The
black line is the most interesting one. This is
an industry thats outperformed the averages by
almost 7x!
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Dont you think youd be better off investing in
hot penny stocks in a hot industry like the one
above? Of course! Investors clearly are flocking
to this industry and when good things happen,
stock prices spike!
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So, what industry did I show you? That graph is
the XBI the SPDR SP Biotech ETF. Think there
are some HOT, Hot, hot penny stocks in the
biotech space you better believe it!
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Just remember, the hot industry changes all the
time in six months it might be technology, or
energy companies, or BANKS! Heres a hot tip
finding a hot penny stock in a hot industry isnt
the only way.
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The hot penny stocks I like to focus on have a
great story. These are companies launching new
products, digging new mines, drilling new wells,
developing new drugs, creating new software,
building new social media platforms.
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I like to look for small penny stocks that have
big business announcements in front of
them. Like this company
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In 1984 you could have picked up shares of Amgen
AMGN for a whopping 4.25 a share split
adjusted thats a price of just 0.08. Yep, 8
cents a share for one of the worlds best biotech
companies.
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As I write this, the stocks trading for 157 a
share thats a 196,150 return. Let me put that
in perspective a 300 investment, yep, 300 bucks
would be worth an astonishing 588,751!
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More than half a million dollars! What made
Amgen so special? The news around this business
was fantastic. They kept launching new products,
making new discoveries, and growing and growing
and growing.
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Unfortunately, trades like the Amgen one are
rare. Youve got to have an iron stomach when
it comes to investing and trading penny stocks.
But that doesnt mean it you cant make it happen!
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Keep your eyes peeled and you might grab the next
Amgen tiger by the tail! Now that Ive got you
thinking, Im sure youre looking for more hot
penny stock ideas. Youre probably wondering
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Where Do I Find A Hot Penny Stock List?
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This is a great question. And it might be one I
can help you with.
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Im planning to add to my article rotation a
review of the hot penny stocks for the month.
That means once a month Im going to look back on
the markets, try to identify the best penny
stocks and tell you all about them.
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Starting right away. So if you subscribe to my
newsletter Penny Stock Research Ill send you
the information like clockwork. And if youre not
a subscriber shame on you.
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Just kidding. Just visit the website and do a
quick search for Hot Penny Stocks Im sure they
will pop up on the search results. Just a
warning these wont be hot penny stock picks.
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Im not going to encourage you to run out and buy
these stocks. Think of this as a penny stock
research list. A list of hot penny stocks to
research and look into.
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As you gather more and more information youll no
doubt find some interesting penny stocks with the
potential to make it big. So for all you
skeptics out there asking
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Are There Really Hot Penny Stocks To Buy Now?
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Youll just have to wait for my next article
where I expose the hot penny stocks for today!
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Did you like this article I know it went a bit
long if you liked it, share it, like it on
Facebook, tweet it, Comment below on the blog or
email me your thoughts. Id love to hear from
you! Good trading
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