Best Penny Stocks To Buy – How To Find Them?
The best penny stocks to buy could be obtained from either your local broker or an online discount brokerage company that will allow you to trade micro cap stocks more affordable in comparison to your broker, especially if you are a small budget trader. You can buy penny stocks online at Trade King or Options House, two great online brokerage resources to try, since both of them offer deeply discounted trading fees and minimal opening balances which are ideal for novice penny stock investors.
Once you open up your brokerage account and make yourself familiar with available to you software, now it’s time to start looking for best penny stock to buy. You will need to compile a preliminary list of penny stocks based on multiple subscription based penny stock screeners that will make suggestions which best penny stocks to buy on a given day. When looking for an online penny stock screener, it’s essential that their stock analyzing software is utilizing both technical and fundamental research approaches.
Penny stock investing is only successful if you take into account basic stock criteria that will help you weed through hundreds of worthless stock picks. Focus your attention on penny stocks with trading prices ranging from $0.05 to $2.00, penny stocks trading over this range are considered less liquid and might not sell as fast. In addition, you should look for the best penny stocks to buy with volume trades no less than 100,000 daily to ensure that you are able to liquidate them once they start going down. Gather as much information about a particular penny stock company, review growth charts over a period of at least five days because penny stock market is so volatile and five days might seem like a lifetime.
Knowing how to find the best penny stocks to buy is an art you can not learn overnight, it requires continuous personal education, staying connected with penny stock investing community and subscribing to a number of stock publications that will help you make the best picks.
Some penny stock analysts put a lot of emphasis on buying Canadian penny stocks due to Canada’s booming economy. Check out our Top 10 Canadian Stocks article to learn more.