Buying penny stocks is kind of an exciting adventure. The stock prices are reasonable, and you can purchase a large quantity of stocks without a large investment. It also does not take a large jump in the stock price for you to make a lot of money. On the other hand, it does not take much of a fall for you to lose a lot of money. That is one of the problems with penny stocks. They are simply a very risky venture. However, if you are certain you want to find penny stocks to watch, here are some things to consider.

When creating your list of penny stocks to watch, make sure you are looking for stocks that have some value. Stocks which have stock prices of fractions of a penny are red flags. Please do not even consider these. Also look for those stocks which have some volume. The market cap should also be above 150 million dollars.

Take the time to do your own research into the stock list. Stay away from hot tips, newsletters and penny stock promotional sites. You do not know the motive of those people who are promoting these items. It probably is not your welfare. They are there to make money for themselves.

Be willing to do your own due diligence in creating your penny stock watch list. Begin with a stock filtering device and then take the time to do both financial and technical analysis. You should look at the book value, cash from operations, debt, stock price movement, the industry and products of the company. After you have done your financial due diligence, you can complete the technical analysis including moving average, candlestick, RSI, head and shoulders, double top and other types of analysis. I have written some additional tips on performing technical analysis on my website, www.mystocktradingtips.com.

Some stocks that I have recently found quite interesting in my stock filtering are:

AOB American Oriental Bioengineering
CNXT Conexant Systems, Inc
JOEZ Joes Jeans

You can practice your analytic skills on these three stocks. I do not own them and will not benefit at all if you decide to invest in them.

If you really want to invest in penny stocks, using a full service broker is another good idea. They can give you some advice on the stocks you pick out and you can learn from what they know. You need to realize that it is going to take some work to come up with your penny stocks to watch list.

You need to remember what Thomas Edison said about opportunity. He said, “Opportunity is missed my most people because it is dressed in overalls and looks like work”

All of the content published on this website is to be used for informational purposes only and without warranty of any kind. The materials and information in this website are not, and should not be construed as an offer to buy or sell any of the securities named in these materials. Trading of securities may not be suitable for all users of this information.