My Secrets To Finding Penny Stocks On The Rise

| November 28, 2014

If you’re like me, you’re always keeping an eye out for big moves in penny stocks… Identifying penny stocks on the rise goes a long way to making big money in your portfolio.

The problem is the internet!

Seriously, the internet has an overwhelming amount of information about companies, trends, and other finance related issues. And when it comes to penny stocks on the rise, it’s hard to tell the difference between fact and all the hype and misinformation.

This is the playground of the scammers and con-artists.

For basic information, you can find Google Finance, Yahoo Finance, Wallstreetjournal.com, Marketwatch.com, and Bloomberg.com all reliable sources for penny stock information. 

Research is Key to Finding Penny Stocks on the Rise

Information on real penny stocks on the rise can be hard to come by.

The big problem companies are those traded on the Over-the-Counter markets or Pink Sheets.

And these small penny stocks are the ones you need the most information on.

So first, I regularly run screens on the markets…

I look for stocks under $10 and focus on those reaching new 52-week highs. This can give you a great list of companies to look at.

Also, I regularly keep lists of stocks I stumble across in my other research.

For example, if I’m researching oil and gas companies, I’ll stumble across companies in the space that are true penny stocks… and so I add them to my list and watch them closely.

Regular visits to the market websites are critical too.

If you’re looking for penny stocks on the rise, you’ve got to go to the source… and this is really true with the otc and pink sheet markets.

These sites all have basic screening tools and ways for you to identify great penny stocks that are moving aggressively.

One other resource I like to use to track stocks is Google Alerts.

It’s a great service that emails you updated news and information on companies and their activities.

I Found a Penny stock on the Rise… Now What?

Once you find some great stocks on the rise, you’ve got to start your research and due diligence.

Stocks sold on the Over-the-Counter markets (OTC) or in the Pink Sheets are not required to have the same standards for reporting financial information compared to the NYSE or NASDAQ.

This means that while it is possible you could land a big return on stocks, the risk is much higher.

Sticking to the major indexes helps weed out scams and highly illiquid companies… but you give up the ability to find that truly undiscovered penny stock that’s starting to move.

Focus on Earnings, Not Hype, to Find Penny Stocks on the Rise

It can be easy to get caught up in the most recent trend or in a cutting-edge product, but it is important to remember that the only way you make money on penny stocks on the rise is if the company is making money.

Look at quarterly earnings, sales numbers, and other hard figures that show you how the company is moving their product and maximizing earnings.

Penny stocks on the rise can mean big profits for you… but only when approached strategically.

Finding penny stocks on the rise with short term spikes… when earnings or sales are small and not growing is a fool’s errand… be careful.

Profitably Yours,

Penny Stock Research

 

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Category: Penny Stocks

About the Author ()

The Dynamic Wealth Report works with a number of staff writers and guest experts who specialize in everything from penny stocks to ETFs to options trading. These guest analysts post under the 'staff writer' moniker for ease of use.

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