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How to Pick Penny Stocks


• We discussed in our last article a very simple strategy on how to pick penny stocks. We’ll reiterate it here, but the focus of this article is a much larger and more advanced approach than our previous more basic premise. That basic premise goes like this, PICK the newsletter that GOES OUT FIRST.*phew* now since that’s out of the way, let’s dive into the more serious aspects of trading penny stocks.


• Your penny stock list to trade from can come in many forms and sizes. In a given day you could have over 5 to 10 penny stocks to trade, meanwhile the traders who knows how to pick penny stocks are already trading away and making a profit… while you’re confused and anxious to get a trade in, not knowing which stock to choose. So how do you avoid this problem?


• One of the solutions to avoid being overwhelmed with a large penny stock list is to simply not attempt to accumulate every single penny stock that has gone out on newsletters. The websites such Pump Tracker, and Penny stocks24 give you these massive lists of symbols that are all being promoted; this is not a good starting step.


• Look only at stocks that we define as “Hot Stocks,” stocks that are clearly more popular than others… One thing to remember when trading penny stocks, is that not all stocks are the same and you ultimately want to trade the one you have the highest likelihood to gain from.


How to Pick Penny Stocks