Paradigm Capital Management Tips On Being A Penny Stock Picker

Generally, penny stocks issued to the public have a face value lower than five dollars. The issues are normally made by companies that are not only up and coming, but also those intending to raise their capital as well as increase their market presence. Thus, members of the public intending to invest in these kinds of shares should conduct a thorough research program. This will give them a clear understanding of the company’s profile, and present them with a safe way to invest in penny stocks. Through these stocks, an up and coming company can attain their target amount which can enable them attain growth.


Since the companies issuing penny stocks are still new to the market, it would be wise to look for relevant information about the companies and their business profile. This will give you an idea of whether or not to invest in a particular company’s stocks. After accessing the relevant confirmations and information, it will be possible to make an investment with them that will enable you be able to get the desired returns. Prior to investing in penny stocks, it is always recommended to be sure of a profit. Since you will be investing in shares of low face value, the gains may not be as large as those shares from companies that are well established.


Despite the small amount, there are similar risks involved. Therefore, selecting one that has good results with regard to investments in penny stocks is highly advisable. The market has several players who can offer help with regard to investing in these stocks. It is vital to approach either security investors or a reputable organization like Paradigm Capital Management that will see to it that your investment is made with the right company to prevent losses.


Conduct some research to get more information concerning the investors and how reputable they are in the market. After obtaining the required information regarding the investor or agency, you can get more information from them concerning companies that issue penny stocks. You also need to obtain the names of companies that already have a market presence. This will allow you to not only trust the company but also to invest with them the amount you intended.


You want to be a successful penny stock picker, so here is another piece of advice; use the internet. The internet has a good number of websites that supply necessary information about the required procedure for one to safely invest in stocks. To be on the safe side, Paradigm Capital Management experts advise you to check for the company’s listing with the government.


Before planning to invest in a particular company, be sure to have gathered all relevant information and advice. This will not only give you to an insider’s view regarding these stocks, but will also allow you to benefit from the investment you have made. Even though the benefit may be minimal, you will still be on the profitable side.

Penny Stock Alerts for Safe Investment

If you are investing in the stock market, try to putting some of your revenue on OTC stocks. You must read Penny stock alerts and newsletter to discover the well-kept secret in the world of investments where savvy investors are making good profits regularly. Know more about secret of safe investment in the market.


Penny stocks are a type of investments valued under $1, yet some people believe that any stock valued under $5. Without keeping in mind the genuine cost per stock, the fact of investing in penny stocks, is something that help investors making a huge profits, only for those people who don’t have big capital to invest in costlier alternatives. For instance, if you only have $500 to invest and you get a perfect biotech penny stock valued at.50 cents per stock, then you can buy 1000 shares. You should follow me.


Additionally, if you were really invest your money in a Pink Sheet Stock that you had done after a few researches and follow the information available anywhere, certainly you can potentially make your money just double and in many occasions may earn triple or expand your investment in a very short period of time. But how can you do this, here are well-known facts of making a huge profit by investing your capital in penny stocks.


Pay attention on the “secret” lies in doing extensive research and penny stock alerts. If you are aware that what to actually search for, you can do such research yourself? Else, you can register or sign up with some popular sites online to get free penny stock alerts regularly. Many stock broking sites provide these reports and newsletters in different ways for members. Reputed stock consulting firms like Paradigm Capital Management will mail you a hard copy every month of an updated list of the best penny stocks to buy, although other consulting firms will deliver you the similar information about current trend of the market and top 10 penny stocks to invest into your email on daily basis.


Signing up to get penny stock alerts is really simple, hassle-free, and best of all its absolutely free for members! You just need to provide your email address where you want to receive alerts for instance and that’s it, without strings attached! These consulting firms earn money from the different brokerage agents and not directly from investors. That’s why they provide the real information to investors through mail.


Also read: Making a Start in Penny Stock Investing

Steps to Creating a Hot Penny Stock List

Having a Penny stock list at your finger tips is what you need to do frequent short term trading. You can create your own list by using technical analysis or you can buy a service that will provide you hot picks. Let’s do a quick review of creating your own penny stock list.


Steps to Create a Penny Stock List


Using a Stock Broker

Find yourself an online broker. Most online brokers have stock screening tools to sort through the thousands of stocks available. The broker will have ideas on how to screen stocks that are typically pretty decent. I focus on companies that have shown a steady increase of cash flow in the past year. I also like picks that are under $2. This type of screening is easy with the right online broker.


Technical Analysis

If you are not familiar with technical analysis, you will need to take little time to get up to speed. The idea with this type of analysis is to review price history on charts to predict how the stock price will act in the future. Charting patterns, oscillators, and indicators used together are common tools to do technical analysis. When combined, they can help you find a share price that will most likely move up or down in the near future. Your online stock broker probably will have lots of information that you can read to get up to speed with technical trading.


Before I started using a stock alert service, there were a few things I’d look for when doing technical analysis. I would like to focus on spikes in trading volume and trend-line breaks. When I saw significant support or resistance broken while volume was spiking, this was a very good technical analysis sign to enter a trade.


Penny Stock Research

Finally, you’ll need to know how to research a company you are considering to add to your hot pick list. The main component of this research will be financial. Understanding how to read income statements and balance sheets can shed some important light on potential picks.


If you thought penny stocks may be a way to make a lot of money, you are absolutely right. Having an easy way to create your own stock watch list or to consult a reputable company like Paradigm Capital Management to provide you a penny stock list is the most important part.

Analyzing Penny Stocks – Paradigm Capital Management

Getting a good penny stock takes a bit of leg work, some research, impeccable timing, and maybe even a little luck. Penny stocks, also known as micro-load stocks, are stocks traded through off the major exchange for significantly less money than traditional stocks. These stocks generally trade at less than $5.00 a share. Since these stocks are traded “over the counter”, most investors buy and sell them without a broker. This requires investors to do some research and develop and implement a comprehensive investment strategy to protect against big losses. Good penny stocks offer investors willing to face a riskier, more volatile market a chance at a bigger reward.

Many websites are dedicated to researching and analyzing these stocks. These analysts pay close attention to a company’s liquidity, debt ratio, equity, and assets. Since these stocks are not traded on the traditional exchanges, they are subject to less rigorous filing and listing requirements. This makes finding good research on them difficult. In addition to utilizing this stock tip websites, you can research good penny stocks on sites like Google Finance and Yahoo Finance.

Many websites specializing in good stocks offer you access to their chat rooms and discussion forums. This gives a potential investor an opportunity to hear about the experiences of other investors, and perhaps an opportunity to see their trading portfolio. You generally need to pay a small monthly or yearly subscription fee to get access to the sites recommendations and chat functions.

Many analysts are recommending these stocks that are poised for big growth over the next few months. Gaming systems, social media support, beverage companies, and power and natural gas companies are expected to make gains over the next few months. For investors looking for good penny stocks, they should follow some national and regional trends and keep an eye on companies looking to make big moves.

We at Paradigm Capital Management believe that finding good penny stocks are only the first part of the equation. These stock traders must have a disciplined approach to buying and selling these volatile stocks. Since these stock investors are generally not using a broker, they must stay on top of their picks. These stocks can gain and lose value much quicker than more traditional stocks. Utilizing stop orders is one way to stop the hemorrhaging from a stock losing its value. Keeping your stock portfolio is also important, so don’t invest all your money in the same company or field.

Investing in good penny stocks is not for every investor. To successfully play the penny stock market, you need to have a high tolerance for risk and volatility. Investors who can handle the extreme up and downs of this market can make a good deal of money for a smaller than average investor. As with any investment opportunity, it is important to understand the risk involved and prepare accordingly. Good, independent research, expert analysis, and your own common sense and intuition can go a long way in making your penny stock investment a profitable one.

The Fundamentals of Good Penny Stocks

You may be wondering what constitutes a penny stock. Some people are confused by the definition. Technically, penny stocks are any shares that trade outside of the normally regulated stock exchanges. So you won’t find these on the NYSE, the NASDAQ, or AMEX.


This may make you feel shaky, because there’s no set price at which these are trading. There can be many prices for a given stock at a point in time. Of course, that very lack of regulation can make them a wonderful buy if you get in at the right moment in time. That’s where the opportunity for a windfall comes in.


They are sometimes seen as volatile, but remember that volatility goes both ways. You can make it work for you. So if you have the money to purchase these penny stocks and the money and time available to hold them until the time is right, you might want to consider this kind of trading.


Of course, as in anything having to do with the stock market, luck plays a major role also. You do your research, buy and sell as your information and your intuition guides, and then rely on all of this coming together at the right moment.


One right moment for buying is when a company is just starting out. If you like what the company is doing in terms of its products, services, and management, you could invest when the price is very low. If you hold it for a while, you’ll find that your investment has paid off nicely over time.


When you’re deciding what to purchase, be aware that there are scams. Sometimes people in the know artificially raise the prices so that they can sell them at a high price. This negates the natural ability of the market to behave in a predictable way.


They call these schemes pump and dump, and you’ll have to do your research into a stock’s patterns to make sure that the one you’re considering isn’t part of such a thing.


Consult with our experts at Paradigm Capital Management if you want to learn more. We at Paradigm Capital Management are focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance.

Read also: Paradigm Capital Management – Good Penny Stocks to Watch

What Does it Take to Be a Good Penny Stock Trader?

If you could somehow have access to a ten minute interview with 100 people who have traded penny stocks for any given time period (most people try trading for less than a year usually), most would tell you of unfavorable experiences where they lost a lot of money. However, some would tell of you their extraordinary success and they would be able to explain some common characteristics that made them proficient penny traders.


We at Paradigm Capital Management want to go over some attributes of successful micro cap stock players by laying them out in the open so you can see what they are and so you can try to mimic them as best as you can so when you start trading you will have what it takes to succeed.


3 Attributes of successful penny stock traders:


  • They do not believe hyped up stories about penny stock companies becoming “The Next Google” etc. Most penny stock companies are scams from a fundamental standpoint but they are still good to trade as long as you can discern them as trading vehicles and not long term investments.


  • The urge to hold stocks after they have gone up tremendously amidst dreams of retiring off of the profits of one trade? Yeah, good penny traders don’t do that stuff. If anything they will sell a portion of their shares to protect initial capital and then ride remaining shares as high as the stock will go.


  • Ability to research penny/micro-cap stock companies, especially pink sheet companies by examining SEC documents to judge the status of the company and the market capitalization or “float”, which is the number of outstanding shares of common stock (times the price per share to figure market cap). Typically a sub-penny stock (under.01) with a float of 50 million shares is a good speculative buy as long as it hasn’t gone up substantially already.


You may think it is simple not to fall for the hype surrounding many penny stock companies, but the fact is that most new penny investors do get sucked into “The Story” behind a micro cap stock. Also, one man said, “You don’t have any profits until you sell!”, and that quote speaks for itself. Doing research on pink sheet companies doesn’t require you to have the skill set of a lawyer, it’s just a matter of familiarizing yourself with a few terms and jargon that are inherent to every SEC filing.


Also read: What to Do After You Receive Penny Stock Recommendations?

Things to Look For in a Penny Stocks Recommendations Service

When you’re just starting out as a trader and trying to figure out the pink sheets stocks to trade, you’re likely to spend a lot of time online looking for the best penny stocks recommendations. Be very prudent about accepting anything that anyone has to say to you.


The problem is that some people just want to play you. Some professional traders keep fake blogs to convince people to buy a particular stock when they should be selling it and vice versa. It’s important to remember that this stock market is a game with winners and losers. The winners try all sorts of tricks to stay in the lead. Follow these four tips by our experts at Paradigm Capital Management to find the best penny stocks recommendations service.


  • Locate a community – if there’s a community of people posting on a blog, forum or twitter account related to the penny stocks recommendations service, chances are it’s legitimate. Communities gather around sites that provide proven money-making results.
  • Look for advice and explanations, not just a ticker symbol – Be wary of any stock picking service that doesn’t explain why a particular stock is the best. The best services teach as well as inform, so you can be aware of why you’re doing what they’re advising you to do.
  • Do some research – If you think a particular stock alert service is solid, do some research into any symbols the service provides. Spend a day watching it and see if you can figure out when you should have bought and when you should have sold, if at all, if you would have wanted to make a lot of money. If your research pans out, the place is generally legitimate.
  • Look for a current events section – The best pink sheet stocks recommendations service will always have a section on current events related to the hot stocks of the day. This is in keeping with the philosophy that it’s better to teach a man to fish than to give him one.


If you’re looking for the best pink sheet or micro stocks, you may be looking for a while before you start to make sense of what you see. In the mean time, of course, go with the stock advice from the best penny stocks recommendations service like Paradigm Capital Management.


Ultimately as a penny stock trader, you want to be able to look at the movement of any penny stock’s past couple days and determine whether it’s lucrative to invest in. But practice makes perfect.

Why You Should Only Invest a Small Amount in Penny Stock?

Penny stock picks are not for the faint hearted and even compared to other share market investments do have considerable risk. Therefore, it is important for you to only invest a small amount of money, and not to commit too much of your portfolio. Below are the suggestions made by our experts at Paradigm Capital Management you should follow when investing in penny stock picks.


  • Invest five to ten percent of your investment portfolio only: As we keep saying there is considerable risk, and as such you should not invest more than you can afford to lose. Yes you can make big gains, but even if you only invest a small amount of money you will still do very well.
  • Diversify your portfolio: Don’t just put your investments in penny stocks. If you do this you will be setting yourself up for failure…big time. Have some real estate investments, have some blue chip shares, and maybe even have some commodities as well. But don’t put everything you have in your penny stock picks!
  • Limit the amount to under $5000: Penny stock picks sometimes go belly up, and while it is not likely, it is not uncommon for the company you are investing in to go bust and no longer exist. Therefore, you could stand to lose all of the money you have invested. So again, use your head and don’t invest more than you can afford to lose.
  • Research, research and research: Don’t just look at the share prices, look at the company behind the shares. Are they stable, are they growing, are they are fly by night company? All of these are questions you need to answer before you should be willing to put your hard earned money into them. It is your money, and you want to make sure you have the best information available before you invest.
  • Be careful where you get your advice from: Make sure you receive your information from qualified and suitable sources. If you hear something from your neighbor always take it with a grain of salt. Their heart may be in the right place but they may not be qualified to provide you with good quality and timely information.
  • Read financial magazines: The more you know about the markets and the companies, the more likely you will be successful. Take the time to research the markets yourself and you will see a good improvement, and more importantly, you will learn when you shouldn’t invest.


If you follow the above tips by our experts at Paradigm Capital Management, you should be well on your way to investing smartly and safely in penny stocks.

Risk Characteristics Attributed to Penny Stocks

1) Penny stock companies are usually start-ups that lack of information about the company, its history and its management. I would argue that financial sector companies suffer from the same lack of transparency. After all, how could anyone not see the leverage and the misguided asset classifications and still invest in these behemoths? The derivatives are way too complicated for the layman to analyze. So we rely on the banks to tell us the truth, while they have a conflict.


2) Large control blocks. Penny stock company founders traditionally have a large block of stock (albeit restricted) to ensure their interests are aligned with the rest of the shareholders while ensuring they cannot sell their shares for a quick profit at the detriment of other shareholders. In the financial sector, these large blocks are held by fund managers who similarly cannot sell their blocks quickly without lowering the market price and thereby impairing the return to themselves. What’s more, the CEO’s of the companies barely have any stock in their portfolios, eliminating the alignment with shareholder values. Instead, it’s become vogue to pay these CEO’s via stock options, giving them an incentive to show short term results and then cash out their options while the rest of the investing public holds shares that were sold by insiders.


This is done by using unwitting brokers, paid analysts and unquestioning media to tow the company line. And because the CEO’s and the companies have been held in high esteem, no one questions the use of these tools or their motives.


Also read: How to Pick the Best of Penny Stocks?


Penny stock companies often use similar tools. Only with a penny stock it’s called stock promotion. And penny stock companies have better motives: without stock promotion, the best company in the world won’t be worth anything because no one would have heard of it – and therefore the enterprise would be hard pressed to raise money for growth. Promotion should be a driving investment criterion for choosing a penny stock.


The issue with promotion is that the SEC often believes that stock promotion involving a penny stock needs more supervision than the promotion being conducted by billion dollar house hold names. Is there in fact an opportunity for fraud in the penny stock market? Of course there is.


But I contend that the risk is much higher with well established companies that have CEO’s holding stock options (big motive for early liquidation since options expire) rather than actual restricted stock (unsellable) for which they actually paid (as many penny stock companies experience). Empirical proof is offered by the billions lost in the financial sector right under the nose of, and with the blessing of the SEC and other regulatory bodies than has ever been lost on penny stocks.


3) Penny stocks are often accused of being used by scam artists who sell them through spam email or off-shore brokers. As the recent IRS/SEC probes have proven, many, many, many American CEO’s have offshore accounts making them no more honest or dishonest than the operators of penny stock companies.


Both traditional penny stock startups and the fallen as exemplified by the financial sector have the potential for growth and for fraud. Both are blighted by cash requirements, by short sellers and by image problems.


The difference is that the fallen companies have the government and SEC fighting for them while the typical startup penny stock company is vilified. The dichotomy is even more surprising when we stop to think that economists have long been telling us, and the American experience has long proved that the start-up is what drives the economy, diversifies the job base, creates the most jobs and is lean enough to take advantage of changing times.


For more help you can consult with the experts at Paradigm Capital Management.
We at Paradigm Capital Management have resources that can dramatically increase your returns and reduce the risk of losing your cash. Contact us at (518) 431-3500.

Or visit here:

Uncovering the Potential of Penny Stocks

Penny stocks (aka small cap stocks) are a specific area of the stock market that is concerned with stocks that are available at a lower price. Generally speaking they should be less than $5 each, although many of them are less than a dollar – hence the name ‘penny stocks’ or shares.


Their main potential lies in the fact that there is always the possibility they will rise and become more valuable. Obviously if you had $2,000 to spend you would be able to buy more shares that were worth just 35 cents each than you would if they were worth $19.50 each. And this is why so many people are attracted to them. Not only can you buy more for your money, you can also look forward to a huge profit if the company responsible for those shares ever hit the big time.


But while there is plenty of potential in the penny stocks market it would be foolhardy to suggest that huge amounts are made every day by lots of traders. In fact this is one area of the stock market where you can lose a lot of money if you don’t know what you are doing.


So how much of the world of small cap stocks is purely speculative in nature? Well, all kinds of trades made daily in the stock market are speculative. You buy at what you hope is a low point, only to sell later on (in hours, days or months – perhaps even years) at a higher point. But if you are going to focus on penny stocks you need to have some background on the company you are considering buying into.


Because there is no regulation of penny shares, it is even more important than usual to research them. You want to find the companies with the most potential and reading news stories, press releases and other information from other penny stock traders will all help you make what could turn out to be the right decision.


Of course everyone wants to find that one small cap stock that will turn into a household name. Everyone wishes they had bought into IBM and Microsoft when they first started out. But that is the essence of penny stock trading. And as such you should always make sure you are comfortable with the amount you are investing – in case you should pick the wrong company and lose the lot.


To learn more, consult with the experts at Paradigm Capital Management, a penny stock and hedge fund managing firm. Our three decades of experience provides an exceptional level of insight that is reflected in our high-conviction portfolios.


To learn more, visit here: