A lot of these type of sites also offer a best penny stocks newsletter or similar newsletter to alert investors to new stock ideas. Major exchanges where stocks are listed include the NASDAQ, AMEX, OTCBB and Pink Sheets. It is always important that you complete your own due diligence stock research on any stock you discover. Investors can analyze stocks based on the fundamentals and/or the stock’s technical’s to form an opinion whether it is one of the best penny stocks to him or her.

There are thousands of books written on stocks. It is a widely recognized and hot topic with people all over the world. Some major media outlets include CNBC and Fox News Business. The stock market can create great wealth for investors who consistently find the best penny stocks out there in the stock market.

Some investors focus on small cap movers with exciting stories and volume action. Some trade stocks and experience the risk / reward of the stock market. Penny stocks can be risky and are usually smaller companies.

Some investors also decide to daytrade the best penny stocks. Each person must decide their own risk tolerance when it comes to investing and the stock market. Experience is important to identify the latest stock trends and market trends. On a good market day, there are several hot stocks in the stock market that may be moving huge. Investors should learn to read charts and read a balance sheet, income statement and cash flow statement in order to understand a company’s financial fundamentals. News is also important for investors to follow.

Stock alerts can be received through a best penny stocks newsletter. It is important to find a stock list to provide a starting point to begin researching stocks. Investors can then begin to follow the stock list and gain experience. There is a wide variety of stock and stock market information out there, so always watch for as much information as you can and keep learning about stocks through reading books and expanding your knowledge when it comes to stocks and the stock market and businesses in general. There are small cap stocks, micro cap stocks, large cap stocks and even nano cap stocks. Find as much stock related information as you can and stay up to date with current trends. Market timing is important to being successful as well, so keep learning as much as possible to find the best penny stocks!

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Discover the best penny stocks at BestPennyStocksNow.com, the site that searches the market for the best penny stocks out there! Find the latest on the best penny stocks.

So the game is to try and find stocks that can rise in value, this is obvious, the tough part is finding a way to identify such penny stocks on a regular basis, and every trader has a different way of doing this. There are a number of ways you can go about finding good penny stocks and these are just some of the more popular ways.

The first is revolves around surveying all of the most popular penny stock blogs and websites. You’d be surprised by just how much you can learn by going onto some of these free websites, and depending on the quality of the site you may be able to ask the author questions and gain an interactive experience.

If you cannot find enough information by going to these kinds of websites then it may be wise to try and subscribe to any one of the many penny stock newsletters that are available. You need to be careful with these newsletters though because many times they are fraught with bad information and miscalculated stock picks so make sure to perform your due diligence on any particular pick or recommendation and you should be all right.

You should also consider asking other traders about their penny stock to watch list and whether they are having any success with it or not. It is also a smart move to ask any other professionals that may be involved within the penny stock industry about what they think are some of the hot picks as many times you can come across some valuable information via this method. Keep researching as hard as you can and don’t hesitate to take action if you think you have found a good penny stock pick.

Seth Lionni specializes in such areas as Good Penny Stocks and Penny Stocks to Watch.

Penny Stock Promoters - a sad truth with penny stocks is that many of them are promoted or “touted” by paid cheerleaders, whose only aim is to drive up the price of the shares.

Promoters may be “investor visibility” companies, who are paid either by cash or with shares in the company to drive up the price. They are very common, and generally operate online, especially since it was the widespread adoption of the Internet which makes most of their tactics, along with their anonymity, possible.

Generally this type of promotional firm will publish glowing research reports about the penny stocks, with very high price targets, and will distribute them to mailing lists and through free-access web sites. This is a major risk for investors in penny stocks, and the most likely way to lose money.

Founders of Penny Stock Companies – these are generally the entrepreneurs whose great idea or business has grown enough to justify the penny stock listing. They often know little about the workings of the markets and how penny stocks trade, and much of the time they could care less.

It is unfortunate that many of these founders of small companies get derailed, used, or trampled by the other types of people involved such as the scam artists or promoters.

Executives in Penny Stocks – Many times the original founder of a company will retain a leadership role in the operations of the corporation, once the shares are publicly traded. More often, however, the positions of CEO, CFO, CTO, etc, are swapped out with “experienced” executives, who may be hand-picked by the venture capitalists or investment bankers who funded much of the penny stocks’ growth.

The thing about some executives is that they believe paid-for promotion is a good way to increase the price of their shares. They may present at an investment conference, or buy coverage from one of these tout-sheets, and spend many thousands of dollars (or provide many millions of shares) in the process.

While the share price of these penny stocks may increase as a result, it is an artificial inflation, and as such is unsustainable. Prices will come back down.

Besides that fact, it is generally poor-quality companies that need to take the paid-promotion path anyway, and rarely the well-run, high-quality up and coming penny stocks.

Venture Capitalists – the money to take an idea, fund it, and grow the business usually comes from either investment bankers or venture capitalists. They may provide millions of dollars, or help the corporation raise the capital on the stock market by selling more shares of the penny stocks.

Of course, the investment comes with strings attached. Those that provide the money to these penny stocks may fill the board of directors with their own people, or place their choices into the key executive roles. This is not necessarily a bad thing, and has actually helped many penny stocks break out of the chains that their former management (often the original founder) had unwittingly built, which held the corporation down.

Scam Artists in Penny Stocks – Since penny stocks by their very nature are thinly traded, and can move dramatically in price, they make for the perfect vehicle for scam artists to manipulate. There are a lot of ways in which a scam can be perpetrated with these tiny shares, but it generally involves picking up a tremendous amount of shares cheap, then driving up the price while they sell into it.

A scam artist could be a 12 year old kid using his mom’s computer, or a well-known CEO who knowingly issues misleading press releases. Often, organized crime has been involved.

The best way to protect yourself from being the victim of a scam, is to only invest in penny stocks with solid fundamentals, like those profiled by well known analysts through subscription-based newsletters and websites.

Analysts of Penny Stocks – Professional analysts know what to look for in their investments, and those focused on penny stocks will generally provide you with much better prospects. These companies will have been professionally pre-screened, so you can rest a little easier knowing that the penny stocks will have legitimate operations and business models.

It is important that you look for those analysts of penny stocks that have a subscription cost, or else you would need to question their motivations for providing you with free penny stock picks.

By gaining an understanding of the various players in penny stocks, you’ll be better suited to avoid some of the pitfalls, while finding higher-quality investments for your portfolio. Just remember, there are a lot of hidden motivations in the low-priced stock world, and you don’t want to become a victim to them.

About the Author:

Peter Leeds reveals top Penny stock companies to subscribers of his newsletter. Learn more about Peter Leeds and penny stocks with his free online book.

• the direction of the economy
• the priorities of consumers
• the policies of governments (local / state / nation wide / international)
• peoples’ habits, beliefs, and activities
• the presidential office and the senate

That’s just to name a few. The ways in which the rules can and will change is vast and complex, and while you can sometimes predict trends, most of the shifts will catch us by surprise.

Sometimes, a trend takes decades (think changing from oil to solar). Sometimes it happens in an instant (think 9/11 and the instantaneously resulting military, political, financial, and consumer activity implications).

Now, if you go against a trend with your penny stock investments, it’s like swimming upstream. On the other hand, if you spot a trend early enough and react to it, you’re setting yourself up to benefit.

You wouldn’t want to buy into a fur coat company when it became politically incorrect to wear fur. The company’s customers, and therefore their revenues, would be dwindling down, and soon the penny stock shares may be as dead as the minks they skin. There would also be implications on all aspects of the fur industry, from the hunters all the way down to the advertising companies that had some furriers as big clients.

On the other hand, perhaps a drop in purchases of fur started resulting in an increase in purchases of leather coats, or expensive jewelry, or fine cars. People often bought fur coats because they were very expensive, and thus served as status symbols. Those same people, when they gave up on fur, would look to other forms of status symbols. Perhaps its a type of car, perhaps its a type of jewelry, or maybe it’s even a different kind of coat. If you can predict the result of the shifting trend, then there will usually be opportunities for you as a penny stock investor.

The are four primary trends which can impact your investment analysis, and the types of penny stock companies you may be investing in. They are:

• social
• political
• industrial
• consumer

In addition to these, there are many secondary trends which could be important, and should be considered by penny stock traders. Some of these include, but are not limited to:

• military (focus, spending, deployment regions)
• investor activity
• religious beliefs
• medical (treatments)
• medical (patient knowledge)
• technology adoption

A few trends of note in recent history include increased use of seatbelts, improving racial tolerance, the invention and widespread use of the internet, technology to combat crime (for example Lowjack to react to car theft), and so on. There are literally thousands of trends taking shape or underway right now, all around you. If you pay special attention to look for such shifts in society, you may spot a trend or two, and from that may position yourself to profit.

About the Author:

Get to know Peter Leeds, and read some recent articles by Peter Leeds.

At Leeds Penny Stock, we’ve found that the big 50% and 200% price climbs (and collapses for that matter) often happen in a matter of days or weeks, while the same stock may trade within a narrow range for months at a time, before and after the move.

This is especially true when a penny stock is reacting to significant news. Even the most volatile shares may have a trading range that varies 40% to 100% from high to low, but when that news breaks, the price of the shares also break out of the range and soar higher (or lower) within a matter of days… or hours!

To make the most of your money, you should try to anticipate the gains that these windows provide, rather than holding the shares over the longer term.

There are four ways that we’ve identified to increase your chances of holding shares just before they make their moves.

1. Technical Analysis Indicators for Penny Stock

As detailed in the section in Leeds Analysis on Technical Analysis, some trading patterns help you anticipate a break-out or strong upside price move. Penny stocks often bounce off of Support Levels, reverse their trends, explode out of Consolidation Patterns, or Bottom Out. Each of these technical analysis patterns can potentially identify an upcoming penny stock price move.

2. Type of Penny Stock Company

Different penny stocks are prone to different trading activity based on the industry or sector they’re involved in, or the type of business they operate.

For example, retail stores have a certain predictability of earnings and revenues which doesn’t allow for sudden explosions of price. Instead, they are more susceptible to longer, less dramatic price trends.

Meanwhile, a biotechnology company can see its share price suddenly double or cut in half based on news, rumors, or even rampant speculation. FDA approval? Law-suit from side-effects of their primary drug? Even small sparks can ignite (or kill) a biotech penny stock.

Other penny stocks that are subject to spiking higher include:

• research and development corporations

• companies with inventions that require patent approvals

• businesses that operate on a contract basis, where one major client or job could represent a significant portion of their total revenues (for example, defense industry suppliers often see their share price thrown around suddenly, based on government contracts won or lost)

• latest “in-the-media” hot stocks (some past examples of such industries include nanotech, dot com and internet, blue tooth, uranium mining, and any business poised to conquer the Chinese market)

• resource exploration companies (not producers)

Some examples of companies that aren’t necessarily subject to the same sudden price moves include:

• restaurants

• retail

• entertainment

• mining and resource producers (not exploration companies)

• furniture makers

Most companies, however, fall somewhere in between the examples given above. Such stocks are subject to price moves if the driving forces of their industries suddenly factor in. For example, a war in the Middle East will affect oil production stocks, or a company making clean energy technology suddenly benefits from a new government policy.

3. Volatility

Some stocks are naturally more volatile than others, for any of a number of reasons. You can get a feel for the propensity the shares have to move, simply by looking at a trading chart. What’s the difference between the year high price and year low price? How many times did the shares change direction, and how quickly did the price ramp up or fall off? How long did major price moves last?

There is a numerical indicator known as “beta,” which is simply a calculation of a stock’s volatility. You can see the beta for any stock on various financial sites, such as Yahoo Finance. A company with a beta of 1.0 will be no more or less volatile than the overall market. A beta of 3.0 means the company is three times more volatile, while 0.5 would mean that the company is half as volatile. Using beta, you can quickly see what to expect from the activity of the underlying shares.

To get the most out of these volatile penny stocks, try to accumulate at the bottom of the volatility as detailed in the section on Support Levels in Leeds Analysis. Then the price swings can become your friend, as they send shares higher, and quickly.

4. Anticipation

It is possible to predict the approximate time when most companies will release their financials (or you could just e-mail their public relations contact and ask). If you expect the details to surprise the street and you get involved before the release, you may be in for a good price ride.

If you can anticipate other types of releases, you may be able to benefit even further. For example, many biotechs will delineate their time line for product development, FDA applications, expected approvals, and product sales. Sometimes it’s just a matter of reviewing their previous annual report.

By having this information ahead of time, you could locate key buying opportunities just before the company has several upcoming landmark dates. If the price is right, load up on shares several weeks before they are expected to finish the development of their latest product. Certainly a news release can be anticipated, and in many cases it will probably affect the stock price, even when it doesn’t include any material changes or surprises from the company.

From another perspective, anticipating the biotech’s time line can help you develop exit opportunities if you are hoping to sell shares, and want to liquidate into a potential price pop to get a better profit.

The same concepts can be applied to stocks from different industries. Just be aware of the timelines, potential effect of releases, and expected results.

About the Author:

Peter Leeds is the Penny Stock Professional. Along with his team at Leeds Penny Stocks they publish picks, buy and sell prices, daily updates, and special feature reports.