What Websites You Use to Find Penny Stocks with Potential to Rise
Are you looking for penny stocks that have the potential to rise? While traditional penny stocks might only see a 1 or 2 cent increase, using the right strategies and tools can transform these investments into promising opportunities. In this article, we explore how to leverage Google searches, stock promoters, and specific financial screeners to identify and trade in penny stocks with potential to rise.
The Traditional View of Penny Stocks
Generally, penny stocks are defunct or struggling companies that rarely provide significant gains. For instance, a lucky investor might see their investment jump from $0.05 to $0.06, netting 10,000 pennies. However, this does not constitute a strategy but rather a matter of luck.
Utilizing Stock Promoters for Hype
Instead of relying on chance, a more effective approach is to leverage stock promoters. Some popular websites offer email notifications for promoted stocks. By regularly checking these sites along with OTCBB, you can identify stocks experiencing high promotion. This creates hype, leading to increased buying, from which you can potentially capitalize on through sales.
The key is not to aim for a home run every time. Instead, focus on making 10 to 30 per trade by selling into strength. This method is more reliable and aligns with sound trading practices.
Using FINVIZ for Penny Stock Screening
If you're interested in trading USA micro and nano-cap stocks, including penny stocks, consider using FINVIZ. This powerful stock screener allows you to create, save, and customize your own screening criteria to filter and identify potential stocks. Although I trade exchange-traded penny stocks exclusively, if you're looking to screen OTC penny stocks, you might be disappointed as I am not familiar with such tools.
To use FINVIZ effectively, navigate to the screener section and choose 'Micro' under 300 million in market cap. This screener is particularly useful for longer-term trading and investing and is free with data delayed by only 20 minutes or so. For real-time monitoring of gainers or losers, consider using Yahoo Finance. Simply refresh the website when the market opens to see the most recent changes.
The Role of Screeners in Identifying Potential Stocks
Screeners, whether provided by your stockbroker or through tools like FINVIZ and Yahoo Finance, serve to filter out stocks that are currently in play. However, they do not predict which specific stocks will rise or fall. This is akin to searching for the Holy Grail—while it's a worthy pursuit, it's unlikely to be realized. If such a tool exists, it would be revolutionary for traders.
To conclude, combining strategies, tools, and actively monitoring the market can significantly boost your chances of identifying penny stocks with promise. With diligence and a well-thought-out approach, you can turn your investments into successful trades. Happy trading!