We are here to help you find which penny stocks are on the rise and which penny stocks email alerts to follow.
Penny stocks are highly volatile investments and is actually not a rocket science. If you’re curious in finding out the best penny stocks, it is essential to find them. There are many ways to find out the penny stocks on the rise.
You can follow these points to know about them in detail:
- Risk Tolerance level
This factor is personal for every investor. It is hugely important to consider while thinking about trading the low-priced stocks. The probability of getting losses is higher for penny stocks than the blue-chipped stocks. Penny stocks are good for short-term profits and growing the small accounts in the least time is possible only with these low-priced stocks. You can even own a greater number of stocks with your desired investment and can double or triple your money within the least possible time. The probability of losing in the penny stocks is quite high. Many traders take experience from paper trading for virtually trading the stock with real trading techniques but no real money.
- Screen the stocks
Stock screening is the way to make a perfect list of your narrowed down choices for considering for investment. There are thousands of penny stocks on various stock exchanges and it is not feasible to trade them all. The stock screener is your assistance for getting the most appropriate results as per your trading style and risk tolerance factor. You can divide your liked stocks as per their segment, gain percentage and focus on its volatility levels. The traders need intuition and figures to find out the most rewarding results. You need to figure out the most rewarding stocks which could beat the volatility status. Screening the list is one of the primary steps to watch out the stocks.
- Create your watchlist
Once you’ve shortlisted the penny stocks to consider, it means that you have created a watchlist. There can be many different types of watchlist. One watch-list can be low float penny stocks, Another watchlist could be marijuana stocks. It is important to keep them at one platform to monitor your stocks for checking out their capability. These choices can be explored further and you can keep a check on the up and down pricing. Checking out your watchlist is important and it is not mandatory that you will definitely look forward to trade them. Rather, it is essential to shortlist them as per the specific criteria to look for trading.
- Fundamental and technical analysis
After making your personalized watchlist, it is essential to decide the right time to begin trading. You can examine the entry and exit points and make out the calculations to perform fundamental and technical analysis for a stock. The stocks you want to trade must have the combinational reliability of pattern, high volatility, and positive business fundamentals. The in-depth research about the stocks will help you in determining the same.
You can check out the business reports, earnings and find out how the company is doing on the whole. It will have a direct impact on the stock prices and the projections for the future. Technical analysis works the best when you start looking at the charts and find out the historical reasons behind the stock pricing movement. There are patterns associated with every stock and these can help you in choosing the appropriate option for trading. Make sure to look for the daily, weekly and 52-week charts to find out the technical aspects of the stocks.
After having the full research, there will be favorites emerging out giving clear patterns about the outlined trading patterns. The criteria you’ve decided to meet will be executed well if you are carrying forward the processes in the right direction.
- Follow your favorite patterns and stock indicators
This one is indeed the hardest part. You can make your watchlist and plan your entry & exit points. There can be a potential plan made for the strong nomination on the list. You need to wait and watch about the options to pick up at the right time. Stock alerts are opted by some people to monitor their needs and find out the different options they have to look for breaking the resistance. You can check out the reasons for the stock prices to reach towards the desired level and execute instant results from the ongoing patterns. You can even fix your stop losses and monitor the options with the changing site. Stock monitoring will enable you to understand the things quite well.
- New Catalysts
The volatile penny stocks have the catalysts making impact on the stock prices. It is essential to make the update on news. The trading platforms make the necessary headlines on the ticker pages to get the analyst reports and the recent news for any company. You can get updates on the regular basis as it will give you actual results based on the price variations. Negative news could provoke you to rethink about the stock or sell it before it goes off. The most essential thing is to understand that every stock on your watchlist doesn’t need to be purchased. The catalyst might make you buy or sell a stock on the right time. If you are not confident and would not like to take the risk, it will be better to remove the stock from the watchlist and choose ‘No Trade’ option rather than making wrong trading steps.
- Consistent Improvement in Trading Skills
The improvement in your trading skills on constant basis will improve your status in the long run. There are several day-trading classes helpful in focusing on the different indicators to find out the ways to create your own analysis. You can even learn the skills to trade without assistance. It might be the slowest way but the fastest technique to make the right move. There are many mistakes which traders make in the beginning of their learning career but once they start understanding, it goes well for the long way. Learning the best practices can ensure that you will survive with the techniques in the best way. The stocks can grow your trading account exponentially for advanced opportunities.