Jan 27, 2012

Posted by in Penny Stock | 0 Comments

Ways To Find Penny Stocks

Find penny stocks if you want to trade in the stock market without taking huge risks. Penny stocks are the stocks of small companies trading at a much lower value than bigger corporate giants. According to the Securities and Exchange Commission (SEC), shares that trade under $5 are categorized as penny stocks. Stocks trading off the major market exchanges are also referred to as penny stocks. Shares of small companies are subjected to fewer regulatory standards and limited listing requirements.

How to Find Penny Stocks With Good Returns

You need to find penny stocks with finest records in order to ensure that your investments in penny stocks yield good returns. One of the ways to look for these stocks is to take help of a free stock screener. Among the huge variety of stocks, google stock screener is a top favorite of most investors. Set the stock screener to list the stocks priced below $5 when scouting for penny stocks.

It is best to carry out an extensive research on your selected penny stocks before you decide to invest in them. Just buying a cheap penny stock is not enough, but try to understand why it is trading at such a low value. Sometimes, a company on a verge of bankruptcy trade at lower levels. However, it will not be wise to invest in shares of such a company. Learn to view stock charts or read through the company websites to find penny stocks that are suitable for trading.

Find Penny Stocks That Are Right For You

When searching for penny stocks, you will find that quick gains and losses often occur for investors trading in these shares. Some stocks do thrive amid the volatility and lead to huge gains in the short to medium term for its investors. Scroll through the cheapest, ‘most active’ and the day’s ‘biggest gainers’ on your concerned market exchanges to find penny stocks suitable for your trading.

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