How To Find The Best Penny Stocks To Watch: Part I

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Penny Stock Research
How To Find The Best Penny Stocks To Watch Part
I
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• Hi, My name is Aaron and Im with Penny Stock
  Research, today were reviewing our recently
  published article

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• How To Find The Best Penny Stocks To Watch Part
  I

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• Want a good way to find the best penny stocks to
  watch? Keep a list. Keep it updated, and always
  keep looking for hot penny stocks. Heres a good
  way to get started.

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• First, set some guidelines by price. Maybe you
  go looking at all stocks that are priced between
  1.00 and 5.00 a share. Should you go lower or
  higher?

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• Thats up to you, but within this range you
  should find plenty of terrific suspects. Next,
  look at volume. Its important to stay away from
  stocks with low volume, the so-called thinly
  traded stocks.

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• When you want to find penny stocks to buy right
  now, you need to find good, strong, consistent
  volume. Next, look at market cap, the value of
  the company. Most penny stocks have a market cap
  of less than 100 million.

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• Whats the lowest market cap you should look at?
  50 million. And stay close to home. Most of the
  time, unless you have a very good reason, stay
  away from foreign penny stocks.

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• The regulatory oversight can be weak, the
  exchange could be shaky, and you could be taking
  on extra risk you dont need. Next, you want to
  make sure the penny stocks to watch are traded on
  a decent exchange.

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• NYSE, AMEX and NASDAQ are fine. But stay away
  from the NASDAQ Pink Sheets.

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• The Problem With Penny Stock Pink Sheets

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• Youre flying blind. The regulations covering
  disclosure mean you are investing money into a
  big unkown. Its literally a black hole.

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• And these Pink Sheets are usually where the penny
  stock pump and dump promoters tend to work their
  scams.

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• There are usually 15,000 penny stocks showing up
  on the Pink Sheets. Its a motley crew... some
  have been tossed off a legitimate exchange, some
  are foreign outfits than cant meet the listing

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• requirements, and some are simply works of
  fiction. They arent real companies. But dont
  worry. Youre not missing any opportunities when
  you turn your back on all the stocks listed on
  the Pink Sheets.

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• There are more than enough penny stocks trading
  on the reputable exchanges. And remember... the
  Pink Sheets are not an exchange. All they are is
  a huge pricelist.

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• The 5 Filters That Focus You On the Best Penny
  Stocks To Watch

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• So youve got price, volume, market cap,
  exchange, and the country the company is
  headquartered in. These 5filters, these 5
  criteria give you a great start.

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• Youre balancing the opportunity to make a
  handsome profit with some common sense
  protections. Whats next? More focus. Dont let
  the size of the list of penny stocks bother you,
  because youre going to keep chopping away.

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• Youre going to bring your own investing style
  into the picture.

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• We all have our own outlooks and beliefs. These
  outlooks dont make us right or wrong, they just
  help to define our approach to investing. As you
  know, a lot of people would never consider
  investing in any penny stock, and thats fine.

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• They miss out on some exciting rewards.
• What about you? Are there some businesses you
  just dont like? Theres nothing wrong with that
  at all.

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• If you dont like mining companies, get all the
  mining penny stocks off the list. Maybe you
  dont like biotech. Same thing... get all the
  biotech penny stocks off your list.

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• You dont need to justify this. Youre the one
  investing in penny stocks. Its your money, and
  you should be comfortable.
• So whittle down your list of penny stocks to
  watch and get rid of the business categories you
  dont like.

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• The Benefits Of A List Of Penny Stocks

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• Youll always have good choices. Youll have
  flexibility and freedom to invest thoughtfully.
  Youll also be proactive, because instead of
  being influenced...

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• perhaps dangerously.... by a talking head on TV
  or an email that comes in promoting a hot penny
  stock, youll know the landscape. Youll be an
  informed investor, and this gives you power.

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• So what should you actually do with your penny
  stocks watch list? First of all, you should
  design it to fit your strategy. Just like I
  suggested that you stay away from stocks that are
  categories of businesses

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• you dont like, stay away from stocks that dont
  fit your investment strategy. What should your
  penny stock investment strategy be? A good place
  to start is to decide how much of the total share
  of

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• your entire investment portfolio should be in
  penny stocks. Decide on a percentage, based on
  your goals. Something else that goes into your
  strategy is time... how long are you willing to
  hold a penny stock?

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• Are you a swing trader, or are you more of a buy
  and hold investor? One approach isnt necessarily
  better than the other. But know what your
  approach is, and put penny stocks on your watch
  list that fit with this approach.

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• Want an example? Lets say youre a swing trader,
  and youre not interested in holding a stock more
  than 2 or 3 weeks. You need stocks where theres
  an opportunity for an uptick, so you can turn a
  fairly quick profit.

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• Take a look at the stocks on your watch list to
  find one that fits this pattern of behavior.
  Granted... past performance isnt anything more
  than a clue, but its better than nothing.

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• Take a look at this chart for Sunshine Heart Inc.
  SSH. It went on the watch list because it
  trades on the NASDAQ, the market cap is more than
  50 million, its a U.S. company, average volume
  over the

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• past 3 months is more than 80,000, and it trades
  between 1 and 5.

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• You see how this stock avoids the nightmare most
  swing traders try to avoid? Thats the nightmare
  of being stuck in a narrow price range.

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• The Sunshine Heart stock price bounces around,
  making it a good penny stock for swing traders to
  consider. When you have a penny stocks watch
  list, you can take a look at stocks like Sunshine
  Heart to see how the stock lines up with your

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• objectives. And you can stay focused on a good
  lineup of stocks that keep you safe from the pump
  and dump promoters. So there you have it the
  filters you need to set up a solid penny stocks
  watch list.

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• If you have a question about a stock or
  investment idea, shoot us an email or leave us a
  comment on the website.

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