How do you find penny stocks before they explode?
Day traders are always looking for penny stocks that have high volatility. One of the best methods that traders and chartists use to find these stocks is by comparing trading volume at any time against a baseline to check if there is an unusual trading activity that could indicate an opportunity.
- Pick stocks of companies from the OTC markets. ...
- Avoid the Pink Sheet Stocks. ...
- Avoid the pump and dump stocks. ...
- Keep away from low-liquidity penny stocks.
- Focus on trading and keep low on investing.
Day traders are always looking for penny stocks that have high volatility. One of the best methods that traders and chartists use to find these stocks is by comparing trading volume at any time against a baseline to check if there is an unusual trading activity that could indicate an opportunity.
- Look for companies with a competitive advantage. ...
- Watch for key market trends. ...
- Monitor volume and price. ...
- Identify companies with strong fundamentals. ...
- Track a stock's relative strength. ...
- Keep an eye out for catalysts. ...
- Exit at your target price.
Penny stocks are traded on stock exchanges for less than ₹10. In India, they must be purchased for at least ₹0.01. The NSE and the BSE are where these penny stocks are traded in India. These are commonly referred to as shares of firms with a market capitalization of less than ₹10 crores in India.
A good place to start is Wall Street Survivor's Investing Ideas page which lists various penny stocks. Another option is to use MSN's Stock Screener which allows you to filter stocks based on desired criteria like price per share. But it's also important to know how to find GOOD penny stocks.
- Pick your own stocks. ...
- Know your numbers. ...
- Don't get greedy. ...
- Don't look back. ...
- Second-guess what you hear. ...
- Keep a long position. ...
- Follow the volume. ...
- Study the underlying company.
Essentially the strategy is to quietly buy the stock, promote it via newsletters and social media to create a buying frenzy. Once the price is high the promotes then dump the stock causing the price to crash. This is known as a pump and dump and is a common tactic used by these manipulators.
- GOTU4.030.38% Gaotu Techedu Inc.
- FSR0.810.04% Fisker Inc.
- KOPN2.340.50% Kopin Corporation.
- ATRA1.220.39% Atara Biotherapeutics, Inc.
- IGPK0.010.00% Integrated Cannabis Solutions, Inc.
- MARK0.600.09% Remark Holdings, Inc.
- BIEL0.000.00% BioElectronics Corporation.
- ABQQ0.000.00%
The opening period (9:30 a.m. to 10:30 a.m. Eastern Time) is often one of the best hours of the day for day trading, offering the biggest moves in the shortest amount of time. A lot of professional day traders stop trading around 11:30 a.m. because that is when volatility and volume tend to taper off.
How do you find stocks that will squeeze?
- The number of shares short should be greater than five times the average daily volume.
- The shares short as a percentage of the float should be greater than 10%
- The number of shares short should be increasing.
One of the tell-tale signs of a market bubble is an increase in asset prices that exceeds their fundamental value. This means that the price of an asset is driven up by speculation and hype rather than its actual worth.
Scan for Stocks with Big Daily Movement (%) Using scanning software we can search for stocks that move more than 5% per day, and have been able to average that for 30 day, 50 days, or 100 days or more. That means you don't need to research each morning what stock is up 7% or 10% (moving big).
- Book Value. A higher book value can oftentimes indicate a more stable company. ...
- EPS (Earnings Per Share) ...
- P/E Ratio (Price-to-Earnings) ...
- RoCE (Return on Capital Employed) ...
- RoE (Return on Equity) ...
- YTD, 1-Year, and 3-Year Performance. ...
- Market Trends. ...
- Sector Analysis.
- Alok Industries Ltd. (2.22) ...
- Inventure Growth Ltd. (0.20) ...
- Ajooni Biotech (4.85) A high-flying biotech stock with exciting research, but buckle up for volatility! ...
- Nyssa Corporation Ltd. (0.30) ...
- Advik Capital Services Ltd. (0.51) ...
- CES CESC Ltd. ...
- Genpharmasec (4.89) ...
- Sulabh Engineers Ltd.
StocksToTrade — Best Overall Penny Stock Screener
StocksToTrade tops this list because it's MY favorite stock screener. It's insanely customizable, meaning you can screen for any criteria you want. You can also use its many trader-built screens, so you can trade like the pros.
- Penny Stock Dream. New York City, New York, US. ...
- Small Cap Firm. Miami, Florida, US. ...
- Stockwrestler's Public Portfolio: A Penny Stock Investment Blog. Texas, US. ...
- PennyStocks.com. Miami, Florida, US. ...
- TipRanks » Penny Stocks. Tel Aviv, Israel. ...
- Micro Cap Daily. ...
- All Penny Stocks. ...
- 5Paisa Blog » Penny Stocks.
Open an account with an online brokerage service.
Buying penny stocks without a live broker means using an online, no-frills service. Sites like E-Trade and TD Ameritrade will let you set up an account with a small deposit for making purchases and paying fees.
| Company | CMP (Rs) | Sales CAGR (3 yrs, %) |
|---|---|---|
| SELLWIN TRADERS | 16.3 | 634.4% |
| BLUECLOUD SOL | 60.6 | 561.1% |
| M.B.PARIKH | 47.5 | 552.7% |
| TELESYS SOFT | 9.8 | 545.5% |
| Name | Sub-Sector | Market Cap (Rs. in cr.) |
|---|---|---|
| Suzlon | Renewable Energy | 47,954 |
| Alok Industries | Integrated Textile Company | 10,343 |
| Jammu & Kashmir Bank | Banking | 13,176 |
| Reliance Power | Power Generation | 8,183 |
What is the most successful penny stock ever?
- Nike (NKE)
- NVIDIA (NVDA) ...
- Monster Beverage Corporation (MNST) ...
- Tractor Supply Company (TSCO) All-Time Return: +54,978% ...
- Axon (AXON) All-Time Return: +48,911% ...
- ASML (ASML) All-Time Return: +30,001% ...
- Netflix (NFLX) All-Time Return: +27,719% ...
- Tesla (TSLA) All-Time Return: +11,641% ...
Ask yourself if it makes sense
The company might be in the red or have minimal revenue, but the stock price suddenly shoots up. If you can't explain why the price is rising, it might be a sign that the price is too high or that you're looking at a pump-and-dump scheme.
It is possible to make money with penny stocks. Then again, it's technically possible to make money with any type of stock. Successful investors usually focus on the potential for their stock picks, regardless of price, to gain value over the long term. There are plenty of good reasons to invest in small companies.
Pump-and-dump is an illegal scheme to boost a stock's or security's price based on false, misleading, or greatly exaggerated statements. Pump-and-dump schemes usually target micro- and small-cap stocks. People found guilty of running pump-and-dump schemes are subject to heavy fines.
| Company Name | LTP | % Change |
|---|---|---|
| Rail Vikas Nigam Ltd | 293.8 | -1.26 |
| Bank of Maharashtra | 56.75 | 0.53 |
| Raymond Ltd. | 1780.45 | 0.47 |
| SAL Steel | 24.95 | -0.60 |
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