Trading Penny Stocks /Penny Shares As Though You Had Inside Informations
Hmmm....can trading penny stocks make you smile? My wallet definitely said yes after traded a few myself like this stock as you may have seen it under chart patterns page.
Some say penny shares are risky and are pure speculative small value stocks. Well, who cares as long as you can make money from them. I have seen little known shares that move as fast as lightning - doubling or trebling in value within a few months!
In UK most penny shares are traded under Alternative Investment Market(AIM), like the one on the chart or PLUS Market. These are small cap stocks and hence traded not in the main London Stock Exchange.
In US, you can trade penny stock via the Over The Counter,(OTC) Pink Sheet Exchange, or small cap stocks exchange. Most stock brokers can buy penny shares for you, even though it's illiquid.
There are 2 strategies to trading penny stocks:
Buy and hold for medium to long term hoping it will be like microsoft one day, but you need to do the analysis as described in
buy and hold strategy page
to see if they are worth holding .
Well, you can either use filters or stock screener to search for small value stocks under the software filter to select stocks that match your trading criteria like stochastics, moving averages crossing up etc for small value stocks in the region of less than uk £ or us $ 5.
You can use this stock filter from Market Club that can screen stocks less than $1, trading volume and your 25+ predefined filters like 52 weeks high, 3 weeks high, strong uptrend, about to break up etc and/or use their propriety trade traingles ( buy and sell signals). They also a free trial as well.
Some of the newer companies won't have enough data to be noticed /picked up by these scanners. So is there another way of picking penny stock to trade? Well, yes.
I am going to recommend two small value or penny shares picking companies that have made me money. Before you click on back button page, they probably do not know I am writing about them, but hey, if they made me money,they could make you money too.
I subscribed to this 12 monthly inexpensive magazine before, who specialized in selecting small value stocks that could literally grow in value. They recommend stocks based on fundamental analysis. Sometimes there are penny stocks in there, (I have traded a few like the above chart).
All you need to do is do a quick technical analysis, make sure the buy signals are there first. If you agree with them and want to hold it for a while, do a quick fundamental analysis as described before, and sell when conditions changed.
US Penny Shares That Could Double In Price - Microcap Millionaire Newsletter
Their penny shares pick is what I believe to be a combination of technical analysis, chart patterns and news to indentify those stocks are too cheap and about to " Bounce Up " or what they call " Bottom Bouncer ".
Their penny stock alerts will tell you where to enter the trade and where to exit the trade as well from the same email.
This is a chart of recent trade alert in April and produced quite a bit of profit in a few days. (I can assure you this is not a Pump and Dump. They are not compensated by any mentioned companies. By looking at the chart and reading news you can see there is trend reversal and chart patterns to aid this trade as well).
You will get email alert roughly three times a week with exact instruction on
Entry points and Exit points. These give you a clear and
concise strategy for trading every one of their penny share picks so you don't have to guess when to buy or sell.
Personal email support.
Weekly updates covering all of their current small cap stock picks, with an easy to read spreadsheet that covers every one of their current picks.
They also produce video analysis of their penny stock picks from time to time, just to break up the monotony of reading email jargon & so you can actually hear their voice and realize they are real persons just like you.
They offer a 100% no questions asked cancellation policy if you ever grow tired of their penny stock picks.