For most penny stock traders, finding good tradable penny stocks is a more complex process than trading them. As penny stocks seriously lack valuable company information, most traders blindly pick their stocks to trade, or follows advice received from any where and eventually lose their money. Below are some tips to find profitable stocks.
- Make a list of penny stock companies first, of which the industry is fairly known to you.
- Now eliminate those companies which you think, or realize, have no sound management or financial background.
- Now read remaining companies using various technical indicators, and delete those that do not fall into your trading nature.
- Try to know more about those companies by investigating online, through friends and fellow traders or through company management.
- Use various stock screeners to screen your watch list.
- Properly record every bit of information you receive about those stock and company on your watch list. (AOL, Yahoo!, Prodigy, MSN and financial newspapers have good information resources)
- Regularly modify your watch list according to latest news, penny stock lists available through various sites, broker provided watch list etc.
- If you are looking for short-term profits then look for penny stocks which are quiet regularly traded or those that are popular for that time.
You can also find quite a bit of penny stock pickers and watch lists on various sites. But beware of frauds.
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