If You're Not Pulling Profits From Small-Caps You Need To Know This.
GPSM | Will Bell | September 26th, 2023
You trade stocks for the sole purpose to make money, so you need to know how to search them out before they spike.
After all...,
...there are thousands of equities to pick from, and new ones are added to the market every day.
No matter how good of a trader you are it's easy to become overwhelmed.
How do you start whittling down the list of the finest penny stocks for 2024 that have the highest potential to make money?
You as a trader must eventually create your own system for selecting stocks. First for the bad news...
To tell you the truth guys as I've learned over 20 years, it'll take...
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Some time to get good a trading
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A lot of learning
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A lot of practice trading
But there's also some good news...
I have various ways that might assist you in becoming a self-sufficient and knowledgeable penny stock trader faster.
Do you want to learn more?
Okay if so let's get started.
We'll go through what a penny stock is, how to identify good penny stocks, and what to do once you've found one that looks promising.
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What Are Penny Stocks and How Do They Work?
Penny stocks, despite their name, are stocks that trade for less than $5 a share. Some companies may be willing to put out shares for fractions of a penny in order to raise capital.
Others are only a couple of dollars per share.
These are small businesses with a lot of volatility, little volume, and a lot of risks associated with the way they operate their business.
I dislike taking risks sometimes, but when danger and reward go hand in hand, it may be worth my while. I've been trading low-cost stocks for more than two decades.
I'm an active stock trader and a hands-on teacher, and my goal as a teacher is to help my pupils learn the things I've learned the hard way, but in a way that is understandable to them.
When you grab a subscription to our penny stock newsletter you can become not just one of my subscribers and begin trading our penny stock recommendations with our newsletter, but also a student.
*** Click here to grab your subscription to Golden Penny Stock Millionaires ***
Short selling and buying and selling shares are both possible with small-cap stocks. The high volatility on these trades are super high, so it's discipline practiced to rarely keep a penny stock for very long.
Some trades are only for a few minutes during morning runs. Others may be overnight, or we may swing trade them for longer periods of time if we've taken a position before the expected catalyst.
Penny stocks can be found on the NASDAQ, OTCBB, AMEX, and NYSE.
You can trade them just like any other stock using your trading account today. At the time when I started trading penny stocks you couldn't, or the online brokers would charge you more just to execute the trade.
The NYSE or other major exchanges, however, do not have the largest list of penny stocks due to the fact that these companies have to meet tough criteria just to get listed and remain on the exchange.
Small-Cap Stocks React To News.
Whether you trade mega-cap stocks or small-cap stocks, this is true across the board.
The price swings of penny stocks, on the other hand, can be enormous.
I'm talking about price increases of 20%, 50%, or even 800 percent in a short period of time can be the norm at this level of trading.
That means that if you're a savvy trader ready to do your homework, you can learn to profit from a breakout (or breakdown, on the flip side).
Of course, just because stocks are cheaper and you may buy a large number of them doesn't imply you should.
I'm a huge believer in starting small and building up over time.
In the long term, a slow-but-steady approach can help you trade safely.
Fortunes are made by buying low and selling too soon. - Nathan Rothschild
Which Penny Stocks Should You Buy Right Now?
Let me be crystal clear:
Whether you follow someone else's stock recommendations or even your own, you should ALWAYS DO YOUR DUE DILIGENCE.
Don't only trade the top penny stocks on Robinhood or anyone else's "top 10 penny stocks" list. Don't trade solely on the basis of someone else's watchlist, including mine.
Why?
Because there are so many variables that influence my trading decisions, and we could both trade a stock that went up 20% and you may lose money on the trade whereas I would make 33%+ out of the trade.
Why again?
Because I bought in the morning as the price pullbacked off the opening price, and I sold in the bullish strength of the trade after the price turned around whereas you... being a new trader... had the Market Force of fear influence the price at which you pulled the trigger to take a cash position...,
and in this example...
...hesitancy cost you as you bought near the session highs after the price went up, and sold out of fear on the 2nd intraday pullback, and took a nasty loss.
You killed your money, but this happens all the time to traders and you're not alone.
The 'best penny stocks to purchase' are always changing.
To be honest, from the time I create the alert and send it out in my trading newsletter, and the time you receive and read it, the stock price can change in the premarket.
Penny stocks can and do, move quickly and for this reason, we have added the Early Bird SMS Alerts options feature for all our newsletter subscriptions. This is for when you're not in front of your computer and in front of your online brokerage account.
However, all our member's only watchlists and trading newsletters are still very beneficial.
I want you to be aware of the procedure for when you become a subscriber.
So, perhaps by reading about why I keep an eye on particular stocks, you can learn how to make your own stock decisions.
My Top 5 Penny Stocks Moving Bullish Off Pricing Pullbacks
$SIDU$ Sidus Space, Inc.
It is a space-as-a-service provider. It focuses on commercial satellite design, fabrication, launch, and data collecting in order to showcase space operations for new technologies and to provide data and predictive analytics to both domestic and international customers.
Carol M. Craig created the company on July 17, 2012, and it is based on Merritt Island, Florida.
$BBIG$ Vinco Ventures, Inc.
Is a digital marketing and consumer products firm. The 911 Help Now, Global Clean Solutions, HMNRTH, 4keeps Roses, Purple Mountain Clean, and Royalty Streams are some of the company's brands. Honey Badger Media and Pop Nation are the two main instruments used by the company. Honey Badger Media is a full-service content monetization firm that focuses on brand-specific messaging and builds digital campaigns from conception to monetization, employing internal assets and long-term strategic partners. Pop Nation's innovative monetization approach transforms traffic to revenue and uses content arbitrage to take use of network traffic and take advantage of a powerful ad stack.
The company was established on July 18, 2017 and is based in Fairport, New York.
$TRHC$ Tabula Rasa Healthcare, Inc.
Is a healthcare technology firm that specializes in the creation of medication regimen optimization solutions for pharmacists, clinicians, and patients. CareVention HealthCare and MedWise HealthCare are two of the company's segments. PACE, which is a center for Medicare & Medicaid services, or CMS, financed program offering medical and social assistance, is provided by the CareVention HealthCare sector. CareKinesis, Capstone Risk Adjustment Services, PACElogic, TruChart, PeakTPA, PersonifilRx, and Pharmastar are some of the company's brands. The MedWise HealthCare sector offers software and services for Medication Therapy Management, or MTM, for Medicare, Medicaid, and commercial health plans, as well as cloud-based patient engagement tools and services. Its brands include MedWise, SinfonaRx, RxCompanion, PrescribeWellness, and DoseMeRx, which provide cloud-based software and clinical pharmacist services.
Calvin H. Knowlton, Orsula V. Knowlton, and Michael Greenhalgh started the company in April 2009, and it is based in Moorestown, New Jersey.
$ANIX$ Anixa Biosciences, Inc.
Is a biotechnology business that focuses on creating oncology and infectious disease therapeutics and vaccines that address important unmet needs. The company was started on November 5, 1982, in San Jose, California.
$XPON$ Expion360, Inc.
Lithium iron phosphate (LiFePO4) batteries and accompanying equipment are designed, assembled, manufactured, and sold by the company. The RV and marine industries are the primary focus.
On June 16, 2016, John Yozamp launched the company, which is based in Redmond, Oregon.
The main correlation behind all 5 of these trades is that they have all fallen from a higher price per share over the last year and are at their 52-week low.
This is a good indication that strong bullish price action despite these market conditions is in close range.
Price Pullback + Consolidation + Positive News Catalyst (should) = Next Wave of Bullish Price Action.
[Please keep in mind that these aren't typical outcomes.]
These subscribers have remarkable abilities and expertise as a result of their hard work and dedication to trading.
The majority of traders lose money.
Always keep in mind that trading is a high-risk endeavor... Never take on more risk than you can bear.]
Where to Look for Penny Stocks Before They Get Pumped
First, you must comprehend stock pumps if you want to trade penny stocks.
They work like this:
A corporation or promoter hypes a micro-cap stock in order to attract as many investors as possible.
Because of the boost in demand, the stock price briefly rises. However, the stock's bullish price movement is unnatural. There is no compelling catalyst to support the price to increase. As a result, it plummets.
It sucks...
However, as a trader, you can take advantage of stock promotions and pumps by entering the market early.
You can buy in and out of a potential pump "only if you recognize" it before it surges and then fails.
Learning to detect a pump and having the fortitude to let go and not get caught up in the market forces of greed are the keys to success.
Even though you know it's a pump, the market forces of greed will make you want to believe the story.
What should you be on the lookout for? The buildup is subtle.
Before pushing a stock, a promoter will begin amassing huge stakes in the stock in little chunks so as not to notify other investors.
What to Look for When Investing in Penny Stocks
What should you look for in a penny stock that you might want to trade?
Well, that is debatable.
On a case-by-case basis, you must analyze market conditions and the stock in question.
For example, before the consolidation, I might dip-buy a stock and then sell it later. You must develop the ability to adjust.
However, there are a few crucial techniques I use while looking for profitable transactions. Let's talk about it...
My 9 Easy Steps To Discover The Best Penny Stocks
These 9 steps are a wonderful place to start when looking for strong candidates in penny stock trading.
1. Open the stock chart and search for recent news.
Traveling back in time before taking a stake in any stock, not just penny stocks, is one of the smartest things you can do.
No, this won't tell you the lottery winning numbers, but it will give you an idea of how the stock will react to any news event.
This works by first pulling up a simple stock chart and then pulling up the stock's prior news stream. Then correlate stock price movements to news notifications. For example, how did the stock price react in the last six months when any and all news about this penny stock broke?
Is it exploding or just blipping up? What kind of news did it bring to the stock price increasing if it did either or both?
Once you've built a smart basket, you'll discover that taking a position before the market opens or when news breaks is a very successful strategy to trade.
This also offers you a good idea of how much the stock is likely to move, which can help you decrease risk and control greed ( not hoping for 95 percent returns when the stock only moved 18 percent on average with any significant news).
I like the Golden Penny Stock Millionaires trading newsletter because when a stock is added to the profit watchlist, all related news is also released.
2. Do your homework on the company
Poor William says in his almanac of 2012 "A clever trader is one who is well-informed."
When choosing a stock, one of the first things to do is conduct a quick web search on the firm in question. No, this will not provide you with all of the answers.
However, it can assist you in determining whether the stock is worth further investigation.
For example, if the company appears to be shady... if its website is just a Facebook page with no physical address... That could be a warning indicator.
Keep an eye on the Yahoo News tab as well. Based on previous news releases and articles, you can rapidly learn a lot about a company.
3. Keep an eye out for volatility.
When it comes to small caps, you must consider price volatility.
You're not only looking for slow-moving, months-long uptrends or downtrends in penny stocks. Stocks that are fast-spiking are what you're looking for.
As a penny stock trader, you should usually focus on the stocks that move quickly.
There are some excellent tools available these days to assist you in identifying losers and gainers. Golden Penny Stock Millionaires trading newsletter can assist you in determining a starting place with a basket of penny stocks.
Consider this: If a stock doesn't move much, there isn't much activity. There will be a small number of buyers and vendors. That means you won't be able to take a substantial position, or, even worse, you'll have problems selling your stock.
Remember that volatility can be beneficial. It indicates that there is movement, whether upward or downward. And that might put you a long way ahead.
4. Keep an eye out for volume
When it comes to picking solid penny stocks, volatility isn't the only characteristic that might help you make effective decisions. Dollar liquidity is also important. If a company's press release looks appealing, but there isn't much volume behind it, don't trade it.
The number of shares that change hands on a particular day is referred to as volume. Volume can help you fill in more parts of the trading puzzle, providing you with a more realistic picture of a good penny stock to trade's activity and feasibility.
When I trade I always avoid stocks with less than 500,000 shares traded every day. To be extra cautious, I may go with 800,000 if I want to be conservative.
In essence, a large volume of traders indicates that a stock is popular. If you decide to sell, you won't have a hard time finding a buyer, and you'll be able to get a substantial position if you desire one.
5. Keep an eye out for catalysts.
A catalyst is something that causes an important event to occur. A catalyst in the stock market is any news, positive or bad, that can cause a stock's price to change.
Let's imagine you come across a news release from Penny Stock Company Sam/Xpple announcing a new product launch. Even the announcement of a release, as we discussed before, can have a significant impact on the stock's value, regardless of whether the product is successful or not.
Mergers, sales, major staff changes, company scandals, and so on are all instances of catalysts.
So, guys, if you're thinking about buying a stock, keep an eye out for any catalysts that might give you cause to believe it will continue to rise.
You'll acquire a better sense of what to watch for over time by scouting the news for catalysts and seeing how they impact equities. You'll have to, or you'll get washed under on your trades.
6. Pay attention to what others have to say
It's interesting to hear about penny stocks on The Street. However, there is a major exception to this suggestion...
While it's fine to look at what others are saying on social media and in chat rooms, you should do it with caution. Use it to bolster your case for your deal, not to make a final choice.
When it comes to buying, you should never blindly follow the advice of chatrooms, forums, or stock promoters and cheerleaders.
One of our goals with our penny stock signals trading newsletter is to teach traders how to think for themselves. It's not just for the sake of copying what others are doing that you should learn everything you can and observe what works for others...
Instead, you should pay attention to the process and learn from it. Then, with your newfound information, chart your own course and create a trading career that is both authentic and acceptable for you.
7. Gain a better understanding of penny stock patterns
History repeats itself... I usually trade using the same basic patterns. They may morph and shift slightly, but they largely remain the same.
I enjoy seeing paint dry patterns because they are effective.
I'd like to make one thing clear: I don't teach patterns so that you can memorize them. It's all about getting to know them so you can anticipate and respond to them in the future. When you start to recognize patterns, you'll notice that there are always possibilities.
Smart traders are experts at spotting patterns...
8. Take into account the time of day
It's critical to pick a strategy that fits your timetable. The truth is, the greatest stocks to trade can vary depending on the time of day.
For example, during early morning trading, some plays spike in under 1 hour as additional traders enter based on the stock's catalyst. However, the time of day can have an impact on how you trade.
Stocks that make terrific morning bets may turn out to be complete losers later in the trading day.
9. Sign up for our penny stock signals alerts ewsletter.
Why spend years working together on a method to narrow down your stock trading options when professional trading newsletters can do it for you faster, more easily, and for less money?
Free trading newsletters should be avoided because they are stock promotors who will only offer "free stock picks" that they or their team have already purchased and taken a position in, or those they are marketing.
What in life for free has ever been worth it? The facts are you get what you put in.
A professional trading newsletter, such as Golden Penny Stock Millionaires, can help you narrow down your options by focusing on the factors that are most likely to change a stock's price. We don't promote stocks.
Professional trading newsletters save you time by bringing you high-quality stocks that are most likely to rise in price as a result of a variety of factors, including volume, volatility, market size, and more.
Golden Penny Stock Millionaires is my Penny Stock Signal trading newsletter, and it's no secret that I own it.
I also assisted with the platform's design.
So the members-only newsletter is jam-packed with features and includes custom-screened prestocks to assist traders like you and me in identifying the top penny stocks.
Take 14-days to paper trade and test our penny stock picks without risking any of your own money.
How to Use the Golden Penny Stock Millionaires Trading Newsletter to Find Penny Stocks
Are you interested in learning how to use the Golden Penny Stock Millionaires trading newsletter, which includes custom-screened prestocks?
Keep in mind that Golden Penny Stock Millionaires is more than just a penny stock screener and Trading Newsletter for high-probability Penny Stock alerts.
It will show you the optimal price to buy each stock and the ideal time to sell... you of course choose when to place your trades.
It's also a fantastic resource for learning how to trade stocks, read stock charts, and keep up with the news on each security.
How to Make a Penny Stocks List - The Best Penny Stocks to Watch
A watchlist is a list of equities you're keeping an eye on and considering trading.
You'll always have stocks to follow and research if you curate and change your list on a regular basis.
That means you'll be ready to seize the opportunity if they fall inside your pricing range.
Want to learn more about what a watchlist is and how to create one? Take a look at this article.
Key Points to Consider When Developing a Penny Stock Strategy
Every smart street trader uses a strategy. This will, to some extent, develop through time.
Here are a few of my pointers to help:
• You're in the danger zone. It's no joking when it comes to understanding that trading entails risk. Respect danger rather than ignore it. Every time I get on my surfboard I think I could drown, or be bitten by a shark... Indeed, I want you to despise risk so much that you'll do everything you can to avoid it!
• Think about your dreams. Why do you trade penny stocks? To help you focus on techniques that will work best for you, be extremely clear about your specific goals and objectives. Why?... Because trading is about money, stocks, and dreams.
• If you're new start with a small account. Always keep in mind that there are no guarantees in trading. As Poor William says in his Almanac of 2012 "Never trade with money you cannot afford to lose".
• Don't make any transactions that you are uncertain of. Don't just trade because you're bored. Wait for transactions that make sense and fit into your existing trading strategy. Attempting to push deals makes the process riskier than it needs to be.
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Discover How to Invest Like a Pro! Become A Member Of My Trading Newsletter Golden Penny Stock Millionaires.
As you know a mentor can assist you in accelerating your trading learning curve.
I never had a trading mentor when I first started out, right out of high school, and I made a lot of blunders.
Although the times were different in 1998, I eventually learned to hone my and developed my trading talents under my trading mentor Chris which is why I'm now a teacher and mentor... as well as the Lead Editor of the Golden Penny Stock Millionaires Trading Newsletter...
I want to be the kind of mentor I wish I had out of high school in 1998.
Based on my 20+ years of stock market experience, I launched our Penny Stock Signals trading newsletter Golden Penny Stock Millionaires.
To stay motivated, I have a large library of books and a great trading network of like-minded traders. And these are just a few of the benefits.
I enjoy assisting traders in finding their footing in the stock market in a way that is unique to them because the game has changed dramatically since Wall Street has come to Main Street with online trading.
However, if you think you're going to get rich overnight, you won't win in the markets. It's all up to you.
Are you ready to take your penny stock trading seriously and put in the effort?
Click Here to take advantage of the Golden Penny Stock Millionaires trading newsletter and grab your free copy of Golden Penny Stocks 1.0.
Conclusion – The Best Penny Stocks
I acquired the freedom to surf whenever I want by trading penny stocks...
I live by the ocean, so you might say I'm a penny stock fanatic.
Trading small caps has a lot to offer when done right... Low-cost equities are easier to access for traders with modest accounts, and they offer the potential to rapidly expand your account.
However, these stocks are not without danger.
You must have a solid knowledge base, devise a sound strategy, and comprehend the workings of the penny stock market.
Because these are high-volume, high-volatility businesses, it's vital to know what you're doing before you jump in.
Poor William's Almanac of 2012 says "Before you invest in trading securities, you should first invest in your education account"
Improve your ability to make informed trading decisions first.
