Preparing Your List of Penny Stocks to Trade Profitably

Well, its not unusual for new investors to prepare a list of penny stocks that they can hope to build their fortune with in a highly lucrative stock market. Trading in penny stocks indeed appears very tempting and lucrative, its especially popular amongst small investors who intend to build a fortune with very little capital to invest with initially.


In that case who wouldn’t be tempted to buy such dirt cheap stocks in such huge volumes. Lets suppose you as a day trader invest $500 to buy 5000 shares @ $0.10 of a highly potential penny stock, and after few weeks if the price of such a share increases by say 500% in that case the share price would be $0.50 each. So an investment of $500 would then fetch a return of $25000. That too in matter of weeks. If you had invested $500 for a large cap share, it won’t ever give you a 500% return, that too in just few weeks time.


No wonder day traders are so much obsessed in preparing a list of penny stocks and narrowing down their focus on just few of these that they wish to build their portfolio with four or five of the hottest penny stocks. Now how does one really go about scouting for such shares with which to build a list and then trading them for fortune. For this one needs to carry out research and analyse the results to find which amongst the stocks are generating interest amongst investors that has resulted in some kind of momentum. How is the shares moving and what kind of pattern does it make, that instantly is a hit and considered hot for investment.


A novice will be overwhelmed with the large flow of data from various sources including stock exchanges. Moreover since the shares are valued less than $5 hence they are not subjected to strict regulations of the SEC to disclose everything about its nature of business, its future plans, its past performance etc. All these details are available only with expert traders and brokers. Moreover the market being extremely volatile makes trading in penny stocks highly risky. Its always reminiscent of a war zone kind of situation for investors to put in their money with the hope to build a fortune around it. There are risks of investing in over hyped stocks and being victim of a pump and dump scheme by scam artists waiting to grab your money.


There are of course sophisticated stock technical analysis software and newsletters offered to paid members from highly reliable and reputed sources who can help you to prepare a list of penny stocks to trade profitably with details of entry and exit points, to minimize risk and for maximum gains.


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:


Where to Find Penny Stocks? Digging in the Stock Barrel

Where to find penny stocks is usually the first question that is being asked by those who plan to invest in such stocks or by those who are new to the stock trading business.


Penny stocks are cheaper by a large margin by nature. This is because these types of stocks are usually being offered by companies that are just starting out. The downside is that penny stocks do not hold the same level of esteem and security as higher quality stocks. However, this does not mean that penny stocks are not worth investing in. On the contrary, a lot of people have realized huge returns of investment through penny stocks.


It is easy to find penny stocks if you know what they are. This kind of stock is usually being offered at a low price in moderate quantities. Also, these are usually offered by companies that are not quite known in their respective industries quite yet. Fortunately, in most stock markets, there is a separate column where penny stocks are identified and listed. In other stock markets where these are not identified, you can identify penny stocks by their price offering, quantity, and by the company offering them.


Once you have identified which ones are penny stocks, you must then decide on what stocks to buy. There may be a time when you will be overwhelmed by the number of stock offerings. The first thing you should do is investigate the background of each company offering the penny stock that you plan to buy. That way, you eliminate any risk of being defrauded.


It is necessary to do some research also on the stock and to ask for advice from veteran stock traders. By reason of their extensive experience and practical knowledge, veteran traders know where to find penny stocks and which stocks to invest on.


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:

The Best Penny Stocks to Buy Now Deserve Contemplation

What are the best penny stocks to buy now? The sad truth is that over 90% of all penny stocks go to zero. Think about it, stocks never start at pennies per share, they can only get that low if something has already gone dramatically wrong. Some people talk about how certain major stocks all used to be penny stocks but most likely this is false.


The truth is they were worth a minuscule fraction of the price that they are currently valued at, but that doesn’t mean they were penny stocks. Stocks do something called a stock split, the stock price is cut in half, and the amount of shares available double. In addition the people who own shares are given the chance to own twice as much. What appears to have once been a stock worth pennies may not have been. The best stocks to buy now, aren’t necessarily worth pennies, but they will have that appearance once they have gone up significantly.


You have to really understand statistics if you want to invest in penny stocks and you have to apply it. If a stock either doubles or goes to zero, and you get it to double 10% of the time, that’s not math that’s in your favor. However, if the stock went up 10 times the amount and went from 10 cents to $1 or more, then you have the system working. 9 times you will lose 10 cents, but on the 10th time you gain 90 cents or more. So that is the break-even point at a minimum. Unfortunately, this can still be a losing proposition if you can’t handle money management.


In order to maintain your ability to buy stock, you will need to be able to continue to invest. If you buy 10 stocks and you lose, you will be unable to buy any more if you invest 10% of your bankroll. You will be putting the odds against you. Now that’s why you need to never invest more than 2% of the your money available for trading. That’s enough to handle going quite a few times without a win and still having enough invested to dig yourself out. Buying penny stocks more so than any other is about money management. There are no sure things. The fact is most cheap stock investors are hoping to get rich off a lotto ticket. It’s not really smart to buy stocks just based on their share price. It can be a reasonable strategy if you really know what you’re doing. However, there’s so many stocks available, it’s better to focus on buying stocks. You should be looking for the best stocks to buy now, not the best penny stocks to buy now.


If the stocks happen to be penny stocks, then you can still buy them, but understand that over 90% of traders go broke at least once and over 95% of these buyers lose it all. So the best penny stocks to buy now, are those that also happen to be the best stocks to buy now. If it’s not the best stock, it has minimal chance to go up. That’s why there’s no room for me to give actual penny stock recommendations because most stocks for cents on the dollar don’t pan out. I’d be fighting the odds, and you have to understand that first before you think you know the best penny stocks to buy now. It’s possible to know the best penny stocks to buy now and still lose it all. The reason is, everything has a chance to go to zero, just as everything has some chance to go from its current price to double or triple.


Stocks under a dollar have the highest probability of going to zero. Stocks never debut for under a dollar on the Nasdaq or New York Stock Exchange. The best penny stocks to buy now aren’t sure things, they’re just “less uncertain” then all of the others. Maybe the best penny stocks only go to zero 70% of the time. Sure if you lose your investment 7 out of 10 times and make 10 times your money, it’s a good investment, but only if you have correct money management. Most people have $1000 to invest, and they invest $300, and lose it all, and then they only have $600, they invest $200 and lose it, they have $400, they invest $100 and they lose it and now $300, they invest $50 and then they lose and with $250 they invest $20 and the stock goes from $.10 to $1 ad they sell but now they only have $450 which is less than what they started with. So you can see how it’s possible to have what looks like a winning trade on paper.


They won on the 5th investment and had they kept all the investment size about the same, they would have ended up having tons more money than they started with. In fact, if they invested $50 5 times, they’d be down to $750 then they invest $50 more and they’d be up 500 to $1200 and it’s a 20% gain. Most people go broke not because they select bad stocks. They may be convinced that the free stock picks was simply bad advice, but in reality it may have been excellent advice that just didn’t work out. The cold hard truth is that you can’t really make money with cent stocks without good money management whether you like it or not. That leaves almost no room to really get rich off these super cheap stocks, but you certainly can manage to find some room for profit. There’s a reason why you never hear stories of Warren Buffett or Monish Pabrai investing in 99-cent stocks or cheaper. First the market cap is so small they would probably buy half the company with the change in their pockets compared to the average Joe. Second, they never got rich off buying penny stocks because most of them don’t work.


Well the best penny stocks to buy now just don’t exist in the way you think they do! That does not mean that it’s a worthless endeavor to buy penny stocks, it just means that those stocks deserve contemplation. first ask yourself “would I buy this right now before all other stocks?” “Is this best penny stock to buy among all best stocks to buy?” “Am I trading these stocks worth pennies with a trading system?” “Do I have correct money management?” There are several other factors to consider. In general you should be very careful when buying penny stocks and understand that there are other factors that determine whether or not a stock is cheap. Just because it is worth cents on the dollar, does not necessarily mean it is the best penny stock to buy now and that it is the most undervalued stock out of all of them on the market.


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.


Read also: The Importance of a Penny Stock Broker for Successful Online Trading

Authentic Tip About Day Trading Penny Stocks

Trading in the stock market itself is risky and dealing with volatile stocks, also termed as penny stocks, is further risky. The fact especially holds true if you are a novice with no or very little knowledge of the field. There are people who have been investing in the stock market for a reasonable period of time and still find it difficult to assess the trends. Though there are tips and tricks available, but it is no guarantee that these tips will work properly. There have been cases where people invested in penny stocks and reaped huge returns while many blue chip stocks yielded nothing. But you cannot just afford to solely rely on luck. A proactive approach and study of the market is extremely necessary if you want to make some money through penny stocks.

Day trading can be a good option as it does not require huge investments. Also it does not demand huge commission and trading margins to the brokers. As we know that penny stocks are low value items and the only game involved is that of volume. In such a scenario, if you start paying hefty commissions to brokers, then there will be very less margin left for earning. Therefore day trading is the best option. There are professionals operating in the market who possess vast experience in trading penny stocks and you can easily get help from them. You are not required to pay huge sums of money to them. They provide consulting services at very nominal rates and you can avail these services to make good profits.

It is a fact that proper research and study is required before you step into the world of these stocks. Penny stocks are volatile in nature and that is the secret of their success. The more volatile a stock is, the greater are the chances of making money through it. Believe it or not, but it is true that millions of people have made a fortune by trading in stocks. There are cases where people multiplied their money multiple times and still there was potential to go higher.

It may take some time to have a grip over these stocks, but once you get it there is nobody who can beat you. Identifying stocks with good potentials and then investing money with a perfect entry and exit time will yield a good amount of returns to you.

To learn more, consult with the experts at Paradigm Capital Management, a penny stock and hedge fund managing firm. The firm was founded in 1972 and is based in Albany, New York with an additional office in New York City.

Read also: Don’t Be One of Those Penny Stock Investment Experts

Where to Go For Penny Stock Recommendations?

Despite the downturn in the markets over the past few years, more and more people are getting into trading small stocks and taking hold of their own future. It is a great idea for every investor to fully understand what they are trading and why and how they are properly diversified. For this reason, many people are looking for penny stock recommendations because they are interested in diversifying even further. By adding micro stocks to your portfolio, you are giving yourself the real opportunity to make some incredible growth over a short period of time.


When you go looking for penny stock tips, you absolutely have to be careful where you get your information from. There are many individuals and small companies on the internet who are using the public interest in these small stocks to give faulty penny stock recommendations, recommendations that only benefit them. Sometimes these are hard to identify, so make sure you follow through with due diligence to avoid getting burned.


Penny shares, in general, do not trade in the pennies. They trade for less than $5.00 per share, and have the ability to move dramatically. They rarely move with the market. So, if the DOW goes up one percent, do not expect your penny share to go up one percent, too. Because there is so little volume and open interest in small cap stocks, they will not move because of the market or market sentiment.


Penny stocks recommendations are necessary in order for you to identify which stocks are about to move or “pop” and why. There has to be a reason. If someone tells you about a stock and cannot give you a legitimate reason as to why it is about to explode, then stay away. Good penny stock recommendations will come to you with the background on the company, what it produces, why it is important, and the real reason behind the changing share value. Perhaps the company is about to be bought out, or maybe they are about to have a drug passed by the FDA. There are many reasons why a penny share will move quickly, but you need to know what they are.


With all investing, you never want to have too much of your cash in one place, so do not get too greedy with penny stocks, but they can make you an awful lot of money quickly if you do it the right way.


To learn more, consult with the experts at Paradigm Capital Management, Inc. a penny stock and hedge fund managing firm. The firm was founded in 1972 and is based in Albany, New York with an additional office in New York City.

Also read: Does the Best Penny Stock List Include Oil Growth Stocks?

Why Don’t the Financial TV Shows Promote Penny Stocks?

Why don’t these financial shows promote penny stocks if they outperform the blue chips by such a long shot?

The answer is very simple:

These shows depend on ADVERTISING for their source of revenue. The big financial institutions that heavily advertise on these shows do not promote penny stocks. In fact, they do not trade them because the price would suddenly skyrocket if they attempted to put in an order the size they normally submit. The very size of their order would make the price go way up before they could even buy them.

The biggest advertisers dictate the content of these shows – and by and large these are big financial institutions that depend on investors buying into the conventional wisdom of Wall Street to their profits. The “experts” they invite to pontificate their views on their various shows are mostly from these big financial institutions and/or they are intrinsically part of that Wall Street culture. Penny stocks just don’t fit into this world – and in fact, if too many investors started trading penny stocks over the traditional wisdom, these big financial institutions would suffer (doubtful this will happen however).

This is very good news for you. You can take advantage of the fact that penny stocks are NOT being talked about ion these financial shows. You can get in on penny stocks that are poised to really take off in the short term without everyone and their brother knowing about it. In other words, you as a smaller investor can get in on a very lucrative deal at just the right timing to make a lot of money. If everyone knew about these good deals, you’d have far less chance to get in at or near the “bottom” before the price skyrockets. Think about what happens with many IPO’s. There are so many people who know about what’s happening, it can be near impossible to get in before the price goes way up. Smaller investors almost never get in on these IPO offerings.

With penny stocks, you can fly under the radar and get in on the best deals before everyone finds out about them. Now, you do have to be very careful because frankly most penny stocks are NOT worth your investment dollars and are far too risky. However, there are a few true gems out there and if you know what these are, you can literally make a small fortune – and if you have an ongoing source of information about which penny stocks are legitimate and about to escalate in price, you can parlay that small fortune into a massive fortune. It literally comes down to the right information at the right time.

You can buy penny stock picks from professionals like Paradigm Capital Management who have a really good record of consistently picking winners – BIG winners. To learn more about how Paradigm Capital Management’s capabilities align with your long-term goals, please contact us at (518) 431-3500

Also read: Reasons to Buy Top Penny Stocks

How to Seize and Deal with Penny Stock Picks?

Stock market is very lucrative business to deal with but knowledge of its crucial trading and grabbing techniques should be there. It’s very unpredictable market to handle so you have to keep your eyes and mind open throughout the time when involved in penny stock picks purchasing and selling. But, make sure you have thorough knowledge of this subject area otherwise things can be worsen easily. Plus, entire share market has been categorized into numerous sections so that people can perform investing as per their comfort and financial convenience.


Those companies have share price below $5 and market cap less than $200, fall into Penny stocks. Sometimes they are also referred as the slot machine of the share market as involvement of slightly higher risks. However, it can prove to be a great option for the professional and advanced investors. For effective and enhanced results follow these steps:


Always invest within your financial range. Always remember, before investing in stock market you have to decide your income range so that everything should be managed accordingly. Plus, keep your savings asides for the emergency time period.


Understand the subject and market intensely as it is measured a risky investment area. Penny stocks considered the most unstable and highly maneuvered form of investment of stock market. Generally, companies don’t follow a trust able track of their financial recital. Besides, the stocks are frequently controlled by swindle artists.


Direct investment with buy penny stocks prove to be dangerous especially if you are doing it first time. Thus, it’s always advisable to initiate with mid and large cap stock at least for one or two years. This way, you can understand the concept of selling and purchasing of shares, reading balance sheet, cash flow statement, income statement and so on.


To make the penny stock investment lucrative and less risky you have to learn the various beneficial aspects of penny stocks. Try to comprehend the technicalities behind money flow, capitalization of share market and structure of stock market.


Learn about the stocks companies and pick which one has to choose or reject. Try to avoid companies with a grave liability load. Spend your money with companies that are consistently growing and have positive image in the market.


Trading is not a leisure pursuit; it’s a serious business matter. So, invest money only when you are serious regarding this and dedicate extra time to this field.


These days, various great invest management software’s are available through which money management and stock investment become much simpler and secure.


Make your education background strong before initiate penny stock picks and stock investments. Warren Buffett has advised that every share investors should make their concept clear related to accountancy and economics so that understand the market more easily.


To learn more, consult with the experts at Paradigm Capital Management, Inc. a hedge fund managing firm. The firm was founded in 1972 and is based in Albany, New York with an additional office in New York City.


To learn more, visit here:

Taking Penny Stock Risks

Penny stocks often have market caps lower than $500 million. This makes it highly speculative for those who trade low volumes ‘over the counter’. Some believe that penny stocks are difficult to sell once purchased because of the difficulty in locating quotes on particular penny stocks. Investors in these stocks are expected to understand that the loss of their entire investment is a viable risk.


Despite the risks involved, penny stocks are attractive to new investors because of the low initial price and the possibility of quick payouts of up to 100 percent in some circumstances. Just as there is the potential of high profits, that potential comes with the risk of substantial losses.


Penny stocks are considered high-risk investments. As a result investors should be aware that these stocks have a limited amount of liquidity and fraud in addition to a lack of financial reporting.


Penny stocks have fewer shareholders. This makes them less liquid than stocks of larger companies. It also means that it will buy and sell less shares. The fact that less shares are traded generally results in unpredictable stock prices. This can either make the prices rise sharply or suddenly decline. The lack of liquidity within this market leaves it wide open to exploitation by market makers, management, and other parties.


These stocks can also be difficult to sell quickly as some days there simply are no buyers.


Another reason for this lack of liquidity is the minimal listing requirements for smaller market listings as compared to NASDAQ or NYSE. Companies that have fallen below requirements for the larger exchanges have the opportunity to get listed on the OTCBB or Pink Sheets.


If you are comparing Pink Sheets to the major exchanges you might want to take note of the fact that Pink Sheets have very few regulatory requirements for those being listed. In other words, there is little protection in place for shareholders by way of accounting standards, notifications of ownership of shares, etc.


These things combined make penny stocks very attractive tools for fraud. This does not at all mean that all stocks listed on the OTCBB are untrustworthy, it simply means that you should keep your eyes open when making deals on this market


Become a better investor with info on penny stocks funds, tips on stock market basics and help with penny stocks listing at Paradigm Capital Management.

Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. To learn more about how Paradigm Capital’s capabilities to align with your long-term goals, please contact us at (518) 431-3500

Also read: A Lazy Man’s Way Can Be the Best Way To Trade Penny Stocks

Essence of The Very Hot Penny Stocks

With the world market still stagnant over a precarious landing, investors around the globe will be certainly feeling the heat, especially with volume trades. Luckily, stock markets have stuck with us in offering the chance to get on with volume trade without putting too much on the line. Yes, buying the hot penny stocks involves risk, but that’s pretty much the same with other stocks. However, just in case you are looking for short term profit, the penny shares are your ideal way out. Besides, stocks are traded in huge volumes, which make them incredibly cheap. Therefore, as investors, you could expect big fluctuation numbers over minimalist stock movements.


Ideally, the quintessential hot penny stocks aren’t that challenging to discover. But the quandary lies within the selection process. A stock graph will tell you half the story. Yes, you do have daily market movements, volume trade equation, rise and fall graph and expert opinions to take into consideration, but that’s just 50% of the analysis. The rest you will need to dig up with stock specific market news.


Deciding upon the best penny stocks in business certainly requires investors to keep tabs over stock market related news. Companies that usually announce expansion plans look forward to sell stocks at cheap rates. Now, a company’s stocks might not be faring well within the stock market, but when the company decides to sell its stocks at incredibly cheap rates, it typically generates volume trades. Customarily, volume trade greatly heightens the chance of profitability.


Besides, hot penny stocks can also be judged via subtle trade movements based upon typical market scenarios. The top stock analysts tend to get their predictions banged on target, simply by looking at specific company news or future plans and then comparing them with stock movements. While the idea looks simple, but its takes years of practice to actually perfect them. Now, it’s not possible to learn such expert stock gazing trades overnight, but it’s certainly possible to realize the best penny stocks in business by simply subscribing for such expert trading tips over professional stock tips based websites.


The great aspect about stock investment is that there are just so many traders associated, which makes it easier for stock study as everyone keeps discussing tips. However, if you do look forward to discover the hot penny stock by your own, then the best place to head to will be over specific websites that aid in stock surveys and also provide subtle stock movement data.


If you want to learn more then you can consult with the experts at Paradigm Capital Management. The firm’s three decades of experience provide an exceptional level of insight that is reflected in their high-conviction portfolios.

Call us 212.364.1830 or visit us here:

Using Stop Loss to Trade Penny Stock

Maybe you’ve heard the famous sports quote, “offense wins games, defense wins championships.” The same can be said for penny stocks: trades create riches, but defensive strategies keep your capital alive. An effective defensive strategy is crucial when the market decides to have a bad day and your position goes south. Your goal on some days has to be to live to see another day.


Amazingly, some traders won’t play defense because they think it gets in the way. They say that stop losses are dangerous and can ruin your strategy. While I’ll agree that stop losses can create more harm than good when not thoroughly thought out or well-placed, making the overall decision to avoid stop losses and money-management techniques is suicide for a penny stock investor. There may not be a more careless way to lose cash after completing a day’s worth of research, placing a stock on a watch list, and finally committing hard-earned capital to a trade, than to watch it all go away because you decided not to play defense.


Rather than ignore defense, let’s learn how to effectively manage your strategies, including the stop loss.


First, some general guidelines to strengthen your trading:


  1. Your first job is to preserve capital to make more trades. Remember that if you can survive a bad decision or a bad market, you’ll live to swing again. Stay focused on your long term goals, not today’s activity.
  2. Even the best poker players lose individual hands. Realize that every trade you make isn’t going to be a home run. To increase your average, you’ll need to cut losses quickly when things go against you. Don’t let your ego get in the way of good trading.
  3. A stop loss isn’t a perfect defensive weapon. If you decide to place a stop loss there are going to be times it’ll trigger and the position will skyrocket immediately after your funds exit. The cost of playing defense is giving up some offense.
  4. Because a stop loss isn’t perfect, it may make sense to trigger a sale more quickly than your stop would hit. If the position doesn’t feel right and your data points to a downward spiral, don’t wait for your stop loss to hit. Get out!


Stop losses are particularly tricky for penny stock traders because of the volatility of these markets. You’ll want to make sure and avoid some common mistakes made by amateur investors:

  • Placing stop losses too closely.
  • Not moving stop losses during the day to gain ground.
  • Turning winning trades into losers by depending on your stop loss to make all of your sales.


Here are some keys by the expert at Paradigm Capital Management to effectively placing stop losses when you trade:


1) Find the average volatility of a position in a day’s trading. Place a stop loss near the bottom limit of an average day’s swing immediately after making your trade. Any movement beyond that parameter shouldn’t involve your money. In some cases, you’ll see how much money you’ll be left with after the stock would sell at your stop-loss point and realize you can’t endure that much loss. Fight the urge to place your stop loss closer. People get burned because they place a stop loss directly against their initial trade to avoid losing any money. Because penny stocks breathe in large swinging motions, you’ll never make any money by placing your stop directly below your trade. Your stop loss will trigger quickly and the shares will move up right after hitting your stop loss.

If for some reason you can’t survive with the capital you’d have left after the appropriate stop loss would trigger, find a stock with less volatility that you can afford to buy while placing effective defensive measures. Maybe you’ll need to swim in the shallow end of the pool for awhile before moving to more aggressive positions.


2) Monitor your gains. As your positions wins ground, raise your stop loss to permanently capture profits. If the stock retraces during the trading session while you’re grabbing a cup of coffee, you’ll come out ahead of the game rather than having to start over.


3) Don’t turn winning trades into losers. Sometimes a stock will get volatile and you’ll have to settle for a small gain even though the stock experiences a great day. Just because your stop loss triggered doesn’t mean you have to stay out of the position! If you’re using a non-qualified account, watch out for wash sale tax rules, but besides this one tax rule there’s no reason to avoid jumping back into a winning position that had a stop loss trigger.


It’s true that investors love penny stocks because the huge volatility swings can create large amounts of wealth. If you aren’t careful, penny stock trading can also easily wipe out your portfolio. Not only should you take the time to do research, weed out companies with little or no product, find superior investments poised for an upswing, and invest when volume levels are beginning to increase, you should also play some smart defense to insure you can trade often enough to create the spectacular results you’re counting on.


If you want to learn more then you can consult with the experts at Paradigm Capital Management.

Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. The firm’s three decades of experience provide an exceptional level of insight that is reflected in their high-conviction portfolios.