Penny Stocks

Welcome to our help page on  penny stocks. On this page you will find a list monthly penny stocks to watch. A lot of people broadly define penny stocks as any stocks that are traded under $5. The average person most likely considers a penny stock to be a stock that trades under $1 and is not listed on a major index like the Nasdaq or The Dow. This page is going to be dedicated to trading stocks under $1. Penny Stocks are usually extremely volatile which means you can make a lot of money but also lose a lot of money. The more you educate yourself the higher chance you will have for success.

If you scroll down you will find weekly updates on which penny stocks are on our watch-list.

Every day people are searching for the best micro-cap stocks to buy. There are over 10,000 different penny stocks to invest in. Most people do not have the time to research all of them. What we have done is put together a list of penny stocks to watch for potential breakouts. You still want to make sure you do your research on the companies listed below. This list is just for entertainment purposes and just an opinion. Make sure you make your own buying and selling choices. Penny stocks can be very risky. One of the hottest sectors is marijuana penny stocks. They have had explosive gains over the last 6 years. Make sure you also take a look at our featured pages for our various stock list. We have a page dedicated to Marijuana stocks, Oil stocks,  Solar Stocks, Gold Stocks, Technology stocks, and Biotech stocks.

Everything is opinion based and for entertainment use only. Please read our disclaimer.

Stocks posted by members of our Elite Facebook group.

Everyone should take advantage of our free text alerts. Text ATEAM to 94253

Our OTC watchlist is just our opinion. We list stocks that we like and most of the stocks we list we will end up buying shares of and selling. So we are biased. We are not a broker. We are not making any buy or sell recommendations. We are not offering financial advice. We may buy and sell shares at any time. This list is not updated in real-time.

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What are penny stocks?

Penny stocks are companies that are not listed on a major exchange like the Nasdaq. Some people consider any stocks under $5 a penny stock while others consider those micro-cap stocks and won’t call a stock a penny stock unless it is trading under $1 a share. Penny stocks are usually companies that fall short of the basic requirements to up-list on a major exchange.

How can you buy penny stocks?

Some brokers actually won’t let you buy penny stocks because they believe the risks are too high and they don’t want to pay the extra fees that brokers have to pay with OTC stocks. We recommend ordering a brokerage account with Etrade. There are a lot of people starting out that like Robinhood because there are no broker fees but you are very limited with the stocks that you can buy with Robinhood. Etrade or Scottrade are much better brokers to use.

What are the best  stocks to buy?

This really comes down to individual trading style. We like low float stocks because they have the potential to move the quickest. We also pay attention to what sectors are hot. A lot of times entire sectors will move at the same time. Look for hints in SEC filings. Remember most penny stocks move based on market awareness and exposure and not necessarily how solid a company is.

Where can you find a list of stocks?

We have several lists of different type of penny stocks listed on this site. You can click on any of the drop-down list above on the menu and find the sector you are looking for. Also, check out our penny stocks of the month page. This will give you some great information on which penny stocks are hot!

Penny Stock investing is sometimes considered one of the trickiest ventures and if a person is not careful they could end up Losing a lot of money. Some people view penny stock investing as a way of diversifying their investments. It is a very risky investment that does not require a lot of money to do.

How to start buying penny stocks

When  getting started in buying penny stocks the first thing I would recommend doing if you haven’t already is making sure you are in the right mindset. Jump on YouTube. Listen to motivational speakers like Tony Robbins, Will Smith, and others. You want to be in the right mindset to attract success. Once you are in the correct mindset define what success is for you. Get out a piece of paper and Detail exactly what your goals are. Attach emotion to those goals. Put those goals in a place where you can see them daily. Start every day with Positive Affirmations. You need to believe you are worthy of your goals.

Once you have defined and committed yourself to your goals and that trading penny stocks is a set to help you accomplish those goals you are ready to begin the next steps.

Setting up a brokerage account.

You will need this to need this to be able to trade stocks. There are different brokerage accounts that work better for different purposes. If you are looking to trade penny stocks the best brokerage accounts are Etrade and TD Ameritrade(they allow you to trade more penny stocks). If you have limited funds and an account under $300 you can consider Robinhood. Robinhood doesn’t charge broker commission so that will save you $7-10 a trade but the downside is that they don’t allow you to trade OTC stocks as the other brokerages.

Choosing the right brokerage firm for investing

First and foremost, do a thorough research to ascertain that whoever you are dealing with is a legit firm. There are so many fraudsters out there targeting rookies and new investors and no one wish to begin on a wrong footing.

Take time to find a brokerage firm with a proven track record in sorting out its finances and taking care of its revenues. Transparency is paramount especially in this form of investment and if a company is not willing to be clear with information then certainly something fishy is going on. The same company must be open with its finances to make it clear for potential investors and at least to win their confidence. No one wishes to lose their hard-earned money easily.

For the sake of saving time, enquire from friends who perhaps might have had successful spells with their brokerage firms. A friend will always be handy to provide clear information without being bias. Penny stock investing can be quite appealing especially when some companies have been mentioned but the history of the company should be put under the microscope. Companies come and go and when they do, they disappear with investors money and there is nothing to be done.

Beware of hidden broker charges that may pop up later after signing all the paperwork. Your chosen broker must put everything on the table and if possible an attorney must be present to oversee any transaction or as a signatory whenever there is doubt.

Here are some websites and resources that will help when getting started.

OTCmarkets.com this is a website that provides information about each company. Everything from charts, Share Structure, to SEC filings and press releases. This site is one of the most helpful and important you can use.

Stockcharts.com This site provides free charts to use. It allows you to look at a bunch of different technical signals which can help you get an idea of what the stock price will do next.

https://www.sec.gov/edgar/searchedgar/companysearch.html This is the URL where you can search and find all the SEC filings for a company. SEC filings will be used to find out what the stock is really doing.  What type of revenue as well as red flags a stock may have.

Ihub– This is a message board/ forum website that a lot of investors use. We will show how you can use this site later to expose pumpers.

Twitter/Instagram/facebook These social sites are good to join and keep connected as well. They help you keep up to date with what is going on and which traders/pumpers are hot.

You will also want to find access to level 2. Level 2 is very important when it comes to trading stocks. Some people also use different scanners to find stocks that are ready to break out. There are many YouTube videos on how to use these scanners. Personally, I have always networked with traders and investors who already were great at reading scanners. Networking allows you to work as efficiently as possible.

Make sure you sign up for our penny stocks watch list. We not only send out alerts of stocks ready to break out from time to time but we also send out weekly watch list for stocks that either have rumors of future news, look great chart wise, or our scanners have picked them out as the potential break out stocks.

Once you receive the penny stocks on our watch list it is import to check them out for yourself. I am going to jump right into using OTCmarkets. If you run across any terms you are not familiar with please go visit our stock market terms page. There are several ways to approach investigating a stock. Some may choose to check out Facebook or Twitter first to see if people are already pumping it. Others will jump on IHUB. Some people they will look immediately at the chart. For these steps, we will be going to OTCmarkets first with the assumption that the chart already looks promising.

Using Otcmarkets.com

Once you have logged in select a stock that you want to search. Type the name or ticker symbol into the top left. We will be using the example of MJNA. Click on the company profile page.

Highlighted and circled in red on the image are some important things we will want to quickly locate. 

A. The company website. I always start by making sure the company has a website and that they keep it updated. If they forget to renew their domains or they let their website go it can be a huge warning sign

B. Make sure the company is current. There are several different types of stocks depending on how transparent they are willing to be with the company fillings. Companies should always be able to keep a status. Companies that are Pink limited, Pink no information, or grey market are a lot more risky and a lot of times hiding that information so they can take advantage of people.

C. This is the share structure of a company. First thing I look at is the market cap. This is the total market value of the company’s outstanding shares. In penny stocks, most of these companies are extremely overpriced. If a company has a market cap of hundreds of millions but only have a net income of $20,000 that should raise some red flags. Keep in mind most these companies are set up just to get people excited so they will buy shares. Most of these companies have zero chance of ever becoming strong legitimate companies. That doesn’t mean you can make money trading them is you understand the psychology behind how they work. The next important thing to pay attention to is authorized shares. Companies with a huge number of Authorized shares can at any time start printing more stock with will dilute the shareholder value and make the stock go down. It is always good to check and make sure the company’s outstanding shares haven’t gone up a ton in the past couple of years. If they have this is a huge red flag as well.

D. This is a link to the Transfer Agent. You will want to call the TA and verify all the information you are seeing. Some company’s gag their Transfer Agencies. That should raise red flags if they do.

E. This is a section where you can find out about the company’s history when it comes to reverse splits. When a company does a share decrease it is known as a reverse split. If a penny stocks company only applies the share decrease to the Outstanding shares and doesn’t apply an equal increase to the Authorized shares this is a huge negative thing. It means the company plans on diluting more shareholder value and the stock most likely will come down a long way. Reverse Split and Authorized share increase are very bad news for penny stocks. If the company has a history of Reverse Splits (Share decreases) you may want to avoid that stock altogether.

The next thing we want to look at is Filings and Disclosures. You can click on the left side tab. Demonstrated in this photo here. 

The most important things to locate first are the earning statements and well as read any possible important updates.

A.  8-k these are good to read through quickly to see if the company has recently filed to have a reserve split or an Authorized share increase. Be very cautious if you find out the company has recently had a Reverse Split of an Authorized Share Increase.

B. This is the last reported quarterly report for the company. Double check this is updated and accurate on the SEC filings site mentioned above. Some companies choose to file with OTC and not with the SEC. I am always a little bit cautious of those companies.

The next step from here will be looking at the SEC Fillings. On our SEC filings page, we will be explaining briefly some important things to look for. Check our our SEC filings page here.