Picking Daily Penny Stocks
Small investors and large traders can profit from lower priced quality penny stocks as easily as they do from blue chip shares. Sometimes the actual rate of return is even better. These stocks do not actually sell for one cent. However, most cost one to five dollars per share. You can find them on almost every national and regional stock exchange. Picking penny stocks can enhance your investment portfolio in small increments.
- Difficulty:
- Moderately Easy
Instructions
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Find penny stock advice and share prices at the stockhouse.com website. Read the site's reports on hot buys in profitable industries sold on Over-The-Counter Bulletin Board (OTCBB) and Pink Sheets.
Take advantage of the wealth of experience available in the members' forum. This site has an active community forum, a stock portfolio tracker, widgets for your iGoogle homepage and newsletters with free registration (see Resources below). -
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Use the tools at Yahoo's Stock Research Center. Identify OTCBB penny stocks by looking for stock symbols ending in "OB." The symbol for penny stocks on Pink Sheets ends with "PK." Register to receive stock alerts using criteria that you create (see Resources below).
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Review expert ratings of available penny stocks and get broker recommendations at Penny Stocks. You must register with your email address to receive the free reports here. The highest rated stock pick sites have earned the reputation for being able to identify good investments. They also have tools to help you spot risky investments in the penny stock market (see Resources below).
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Choose a brokerage firm with market maker status. They will be able to negotiate bid and ask prices for OTC penny stock. Your broker should also be registered to trade on the NYSE, Amex and the NASDAQ. It is not unheard of to find $5 per share stock opportunities on the major exchanges.
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Monitor penny stock activity. Expect bid and ask price variations that can eliminate your potential profits. Many of the companies whose shares are sold as penny stocks may not meet the standards required for companies listed on the NYSE and AMEX. The OTCBB accepts companies that have been delisted. Pink Sheet companies do not have to file SEC reports that the NYSE, AMEX, NASDAQ and OTCBB require.
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Tips & Warnings
Get ratings and recommendations from stock sites that have been online more than a couple of years. Use a disposable email address to get information from sites that offer penny stock advice. You can redirect the email to your preferred email if you find the emails useful.
Financial advisors do not usually recommend investing in penny stocks. They are risky because most of the shares are sold by unproven companies. Some penny stock advisors and rating sites get paid to distribute biased penny stock recommendations. Manipulation of prices is their intent.
