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:

1. 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 .

2. Buy and sell for a few days /weeks using rules as described in buy and sell signals page.

How Do We Find Stocks to Trade ?

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 $5, trading volume and your 25+ predefined filters like 52 weeks high, 3 weeks high, strong uptrend, about to break up etc. They also a free trial as well. Just click on the below banner.

Or you can try this ebook Penny Stock Secrets Reveal

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.

UK Small Values Shares Picks Companies- www.growthcompany.co.uk

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

For the price of one off membership fee of $47, you can get penny stock picks for as long as the newsletter exist from these two geeks who originally developed trading software for financial institution Goldman Sachs.

You will receive recommendation via email, usually on Sunday.

I am not sure the exact criteria these two geeks used to scan for stocks, but I think the filters they used are not readily available and are their own invention. Certainly news and technical analysis /chart patterns are parts of the filter used as most of the stocks price jump up, almost doubling in price in a few days/weeks and sometimes even hours. See below.

Still have doubts about this doubling stocks site recommendations ?

Well if you are still skeptical about this penny shares picks, then you can paper trade on them, see how their recommendations perform before putting real monies into the trade. I normally do a quick check by looking at charts, to see if the trend is about to break to the upside, are they bouncing off support lines etc along with the buy signal.

You can check out their winning trades and losing trades from their websites. Just click on link above.

Update

There were quite a few headlines on the company development and potential contracts, after watching the chart and saw it bouncing off 200 day moving average when I received the email, I gave it the benefit of doubt and traded it as he recommended a few times and they were very profitable in a few days ! Here is the chart.

More penny stocks entered my email inbox while I was on holiday/ vacation in May. This one in particular with ticker symbol uomo, also had a few headlines, won a few awards as well.

The email said this stock will hit $1 soon when it was trading around $0.20 area. Guess what? He was right!

Here is the chart.

So this newsletter at $ 47, less than the price of a night out, is still worth subscribing to them. They even offer 8 weeks money back guarantee if you are not happy with the recommendations.

You don't need to spend much money buying penny shares. You can start with a few hundreds dollars for say 2000 shares and then just move up slowly. Click here for your penny shares newsletter.