Great Ways To Find Penny Stocks To Watch

When it comes to figuring out what penny stocks to watch when trading the micro cap markets

, the best thing you can do is tap into very specific features in the stocks that give precise evidence of a penny stock getting ready to rise in value. This takes quite a bit of time and practice and realistically the average trader won't make it there quickly! I recommend taking the time to practice simulated trading with a penny stock trading system for around 2 or 3 weeks before jumping into real trades with real money. Before making a trade, here are some of the best indications to look at when searching for penny stocks to watch.

The primary thing to look for is to find a penny stock that has a recent advantage over its competition. These micro cap stocks will quite often gain essential new opportunities such as new deals with other companies, recently developed expansions into other markets, and new shareholders to provide them with equity and opportunity to build prosperity on. Micro cap stocks quite frequently change overnight by gaining new eyes and ears and creating this edge over other companies in the market.

Also, whenever a new micro cap stock gets listed as one of my penny stocks to watch, I consistently see if it has a technical analysis pattern that has volume spikes. Technical analysis offers a lot of important features to trading that should not be ignored. Pay attention to volume spikes in overall price and pull the trigger when the volume is getting ready to spike again for a solid fill on orders.

In addition to those, one last feature to analyze when deciding what penny stocks to watch would be the earnings reports and profits of this particular equity. This takes a stock that maintains quite a bit less debt and much more equity from the profits they take in from business. Finding this out is very much required as a stock getting ready to jump will pretty much always have a positive earnings report. If you see this and do not see a rise in price, chances are the stock is getting ready to jump so grab the stock while you still can!

Overall, finding good penny stocks to watch is an art form that can take years to work. Fortunately, there are people you can get advice and trading recommendations from without having to be an expert yourself. Many services offer newsletters that feature free or low priced stock picks for micro caps, a great way of making money on these stocks. I highly recommend it!

by: Eric Conklin

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