Generally, penny stocks issued to the public have a face value lower than five dollars. The issues are normally made by companies that are not only up and coming, but also those intending to raise their capital as well as increase their market presence. Thus, members of the public intending to invest in these kinds of shares should conduct a thorough research program. This will give them a clear understanding of the company's profile, and present them with a safe way to invest in penny stocks. Through these stocks, an up and coming company can attain their target amount which can enable them attain growth.

Since the companies issuing penny stocks are still new to the market, it would be wise to look for relevant information about the companies and their business profile. This will give you an idea of whether or not to invest in a particular company's stocks. After accessing the relevant confirmations and information, it will be possible to make an investment with them that will enable you be able to get the desired returns. Prior to investing in penny stocks, it is always recommended to be sure of a profit. Since you will be investing in shares of low face value, the gains may not be as large as those shares from companies that are well established.

Despite the small amount, there are similar risks involved. Therefore, selecting one that has good results with regard to investments in penny stocks is highly advisable. The market has several players who can offer help with regard to investing in these stocks. It is vital to approach either security investors or a reputable organization like Paradigm Capital Management that will see to it that your investment is made with the right company to prevent losses.

Conduct some research to get more information concerning the investors and how reputable they are in the market. After obtaining the required information regarding the investor or agency, you can get more information from them concerning companies that issue penny stocks. You also need to obtain the names of companies that already have a market presence. This will allow you to not only trust the company but also to invest with them the amount you intended.

You want to be a successful penny stock picker, so here is another piece of advice; use the internet. The internet has a good number of websites that supply necessary information about the required procedure for one to safely invest in stocks. To be on the safe side, Paradigm Capital Management experts advise you to check for the company's listing with the government.

Before planning to invest in a particular company, be sure to have gathered all relevant information and advice. This will not only give you to an insider's view regarding these stocks, but will also allow you to benefit from the investment you have made. Even though the benefit may be minimal, you will still be on the profitable side.

Having a Penny stock list at your finger tips is what you need to do frequent short term trading. You can create your own list by using technical analysis or you can buy a service that will provide you hot picks. Let's do a quick review of creating your own penny stock list.

Steps to Create a Penny Stock List

Using a Stock Broker

Find yourself an online broker. Most online brokers have stock screening tools to sort through the thousands of stocks available. The broker will have ideas on how to screen stocks that are typically pretty decent. I focus on companies that have shown a steady increase of cash flow in the past year. I also like picks that are under $2. This type of screening is easy with the right online broker.

Technical Analysis

If you are not familiar with technical analysis, you will need to take little time to get up to speed. The idea with this type of analysis is to review price history on charts to predict how the stock price will act in the future. Charting patterns, oscillators, and indicators used together are common tools to do technical analysis. When combined, they can help you find a share price that will most likely move up or down in the near future. Your online stock broker probably will have lots of information that you can read to get up to speed with technical trading.

Before I started using a stock alert service, there were a few things I'd look for when doing technical analysis. I would like to focus on spikes in trading volume and trend-line breaks. When I saw significant support or resistance broken while volume was spiking, this was a very good technical analysis sign to enter a trade.

Penny Stock Research

Finally, you'll need to know how to research a company you are considering to add to your hot pick list. The main component of this research will be financial. Understanding how to read income statements and balance sheets can shed some important light on potential picks.

If you thought penny stocks may be a way to make a lot of money, you are absolutely right. Having an easy way to create your own stock watch list or to consult a reputable company like Paradigm Capital Management to provide you a penny stock list is the most important part.

For more info, visit here: http://paradigmcapitalmanagement.weebly.com/

You may be wondering what constitutes a penny stock. Some people are confused by the definition. Technically, penny stocks are any shares that trade outside of the normally regulated stock exchanges. So you won't find these on the NYSE, the NASDAQ, or AMEX.

This may make you feel shaky, because there's no set price at which these are trading. There can be many prices for a given stock at a point in time. Of course, that very lack of regulation can make them a wonderful buy if you get in at the right moment in time. That's where the opportunity for a windfall comes in.

They are sometimes seen as volatile, but remember that volatility goes both ways. You can make it work for you. So if you have the money to purchase these penny stocks and the money and time available to hold them until the time is right, you might want to consider this kind of trading.

Of course, as in anything having to do with the stock market, luck plays a major role also. You do your research, buy and sell as your information and your intuition guides, and then rely on all of this coming together at the right moment.

One right moment for buying is when a company is just starting out. If you like what the company is doing in terms of its products, services, and management, you could invest when the price is very low. If you hold it for a while, you'll find that your investment has paid off nicely over time.

When you're deciding what to purchase, be aware that there are scams. Sometimes people in the know artificially raise the prices so that they can sell them at a high price. This negates the natural ability of the market to behave in a predictable way.

They call these schemes pump and dump, and you'll have to do your research into a stock's patterns to make sure that the one you're considering isn't part of such a thing.

Consult with our experts at Paradigm Capital Management if you want to learn more. We at Paradigm Capital Management are focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance.

For more details, visit here: http://www.paradigmcapital.com/

There has been a certain period of time, when it was considered to be a sin to buy or trade in penny stocks. This is no longer the case; it is becoming a lot more popular among investors and people that are looking forward to growing their investments or portfolios.

It is pretty obvious when you buy stock you want to make sure that you're buying the correct one and that stock is going to make you money. However, in reality, it is very difficult to select the correct micro cap stocks were down doing a proper analysis of the penny stock. We at Paradigm Capital Management are sure that you are well aware that they are many websites dedicated in helping you choose the correct penny shares. It is basically becoming just like normal stock trading website and tools.

Know what these tools help you achieve is really simple just like ordinary stocks. They give you a certain pattern that will help you determine if the stock option is a good buy. Alternatively, you should just leave it alone. This is the key to helping investors investing their money in penny stocks.

Now, if you are a serious investor. You would want to have the correct tool that will help you on your research. This is where penny stock screeners are so valuable; as they provide you the correct tools to identify not only cheap stock options are also the correct micro cap options.

These types of tools will actually eliminate a missed opportunity, because they will provide you load of research on a given stock quickly and accurately. And also deter you away from the dangerous stock options that available for you to purchase. This tool will help expand your investment portfolio at a rapid pace. This tool is also there to make sure that you run at a profit. If you have been trading in penny shares, and you are currently looking for a tool like this. You'll understand how important a penny stock screener is to an investment.

Also read:  What to Do After You Receive Penny Stock Recommendations?

Do you know what a quality penny stock is?

If somebody told you that they look for quality penny stocks to buy, what do you think about their strategy? Do you have any idea what a quality penny stock is?

The first thing you need to understand is that to be a good trader you need to know what quality penny stocks are. It is important to know what these are because if you don't then the odds of you making the right trade will greatly decrease. When referring to a quality penny stock, quality refers to the company and penny stock refers to the price. And this is exactly the reputed companies like Paradigm Capital Management help you in this case.

Now do you know what exactly a quality penny stock is?

The reason I want you to think about stocks like this is because their low price makes them a risk for high volatility and if that is not what you are after then you will probably be scared away from them. Trading any type of stock will have a risk involved with it but just know that the better the company is the better the trade will be on your end.

How To Find Quality Stocks

One of the very first things you have to do is figure out how the company is doing and how they are running. In order to judge the strength of a company I would look at the tenure of the executives, the potential profit for the current year, and how the company has done with the recent market and economy changes. Only when you have determined whether the company is good or not should you buy into them.

If you are thinking about investing in low priced stocks simply because you want your money to go further than I understand your thinking but just know that some trades are a huge risk when you get to such a low trading stock and that is why I want to make sure you don't trade with money you have lined up for another trade. My advice would be to make sure you have money waiting for both risky trades and sure things.

If you want to make sure that you are trading something that is going to give you some kind of return on your money then one thing you need to understand is that it has to be a good stock. Our experts at Paradigm Capital Management suggest you to don't invest money into something that you are not sure about and never put money into something that you have not done your initial research on.

The best penny stock traders know how to properly conduct penny stock research so that they can find out what they need to when they need to. Penny stock research can provide a motivated trader all sorts of information if he knows where to look from good penny stocks to watch, to market trends, to the best brokerages to work with. Penny stock research is vital when you are first getting started with trading penny stocks and if you can teach yourself to do good research then you are already a step ahead in this game.

When you begin to get serious about your penny stock research and your penny stock trading as a whole then it may be time to find a really good penny stock broker that can provide you a valuable service at low cost. Brokers essentially come in two categories, the ones that can only provide only a mechanical-type service for you and the ones that can provide you with advice and other kinds of relevant information. Some penny stock brokers can provide you with both, and depending on what you're looking for this may be the right option for you.

If you are looking only for a broker who can make your trades at your behest then by all means go with a broker that can specialize in only doing that. If you are looking for the best judgment and advice from another industry professional then you should always go with a broker that can provide you with additional services on top of what they can do for you in terms of actually trading penny stocks. Most brokers and brokerages let you know flat-out whether they can provide such services and once you have identified these sorts of brokers and brokerages then you should try and compare and contrast them all to see which ones can provide you with the best service package at the lowest possible price.

Many times the best brokers are in the highest demand and will not be available for hire but if you can stay persistent and perform your own research you should eventually have no trouble finding a broker that can work with you on a one on one basis. Just because you're paying for their services and advice doesn't mean that it's the right thing to do so be careful and take everything the broker says with a grain of salt. You are still the one in control so it is up to you to make smart decisions and as long as you can do this you will be happy with your broker in the end.

For more help you can consult with the experts at Paradigm Capital Management .

We at Paradigm Capital have resources that can dramatically increase your returns and reduce the risk of losing your cash. Contact us at (518) 431-3500 .

Or visit here: http://www.paradigmcapital.com/

1) Penny stock companies are usually start-ups that lack of information about the company, its history and its management. I would argue that financial sector companies suffer from the same lack of transparency. After all, how could anyone not see the leverage and the misguided asset classifications and still invest in these behemoths? The derivatives are way too complicated for the layman to analyze. So we rely on the banks to tell us the truth, while they have a conflict.

2) Large control blocks. Penny stock company founders traditionally have a large block of stock (albeit restricted) to ensure their interests are aligned with the rest of the shareholders while ensuring they cannot sell their shares for a quick profit at the detriment of other shareholders. In the financial sector, these large blocks are held by fund managers who similarly cannot sell their blocks quickly without lowering the market price and thereby impairing the return to themselves. What's more, the CEO's of the companies barely have any stock in their portfolios, eliminating the alignment with shareholder values. Instead, it's become vogue to pay these CEO's via stock options, giving them an incentive to show short term results and then cash out their options while the rest of the investing public holds shares that were sold by insiders.

This is done by using unwitting brokers, paid analysts and unquestioning media to tow the company line. And because the CEO's and the companies have been held in high esteem, no one questions the use of these tools or their motives.

Penny stock companies often use similar tools. Only with a penny stock it's called stock promotion. And penny stock companies have better motives: without stock promotion, the best company in the world won't be worth anything because no one would have heard of it - and therefore the enterprise would be hard pressed to raise money for growth. Promotion should be a driving investment criterion for choosing a penny stock.

The issue with promotion is that the SEC often believes that stock promotion involving a penny stock needs more supervision than the promotion being conducted by billion dollar house hold names. Is there in fact an opportunity for fraud in the penny stock market? Of course there is.

But I contend that the risk is much higher with well established companies that have CEO's holding stock options (big motive for early liquidation since options expire) rather than actual restricted stock (unsellable) for which they actually paid (as many penny stock companies experience). Empirical proof is offered by the billions lost in the financial sector right under the nose of, and with the blessing of the SEC and other regulatory bodies than has ever been lost on penny stocks.

3) Penny stocks are often accused of being used by scam artists who sell them through spam email or off-shore brokers. As the recent IRS/SEC probes have proven, many, many, many American CEO's have offshore accounts making them no more honest or dishonest than the operators of penny stock companies.

Both traditional penny stock startups and the fallen as exemplified by the financial sector have the potential for growth and for fraud. Both are blighted by cash requirements, by short sellers and by image problems.

The difference is that the fallen companies have the government and SEC fighting for them while the typical startup penny stock company is vilified. The dichotomy is even more surprising when we stop to think that economists have long been telling us, and the American experience has long proved that the start-up is what drives the economy, diversifies the job base, creates the most jobs and is lean enough to take advantage of changing times.

For more help you can consult with the experts at Paradigm Capital Management .

We at Paradigm Capital Management have resources that can dramatically increase your returns and reduce the risk of losing your cash. Contact us at (518) 431-3500 .

Or visit here: http://www.paradigmcapital.com/

We all know that Penny Stocks are a risky investment. To reduce the risk of trading these stocks you must work on some basic guidelines of what the company looks like as well as the chart of the specific penny stock. The more knowledge you have about reading charts and the back grounds of penny stocks, the better off you will be.

Research is the key to finding successful penny stock picks. You will need a stock screener to find stocks that meet your first criteria. You will also need some help with reading about a company’s financials and how to dig through their SEC filings. You must learn charting basics. We have a helpful forum on our site but still, don't just trust, gather ideas and investigate.

Once you find a stock and the chart looks right, watch it trade for a day or 2 and then plan your trade. What price are you willing to buy at and what price will you sell. How can you determine this? This type of research can be a chore, it can be difficult and tiresome. Finding ideas on our penny stock site will help you. Then you find a chart you like and then dig through the company. If you dig through a company before checking the chart, you're wasting your time.

There are some things to speed along the process. Join our forum and become active, ask questions about stocks, read our newsletters, look at our picks and our screened stocks. Use the forum to bounce your fist picks off of others. We do a good job of getting rid of the pumpers, dumpers and other scammers but some still get through. So don't just trust, do your own research and read our newsletters.

Your knowledge and gut instinct are the best tools out there, we like to provide a site that facilitates your learning about penny stocks and helps you spread your knowledge. To other learners we love if you place your picks and we can watch them run. As professional traders we love watching other people make picks, the more good eyes watching the market the better chance we have to score big! There are also plenty of articles we have published that can help you get acquainted with these inexpensive stocks and the difficulties of trading them.

The best part of The penny stock blog is the knowledge you can find everywhere you turn. Because crazy constant pumping is not aloud, the board seems quieter than other places where penny stock pumps are why the board was created. You don't want to use any one tool for determining how to trade these otcbb stocks you need to use all the tools mentioned and lean which ways work best. Sometimes, sitting on the sidelines is better than attempting poor thought out trades.

Speak with our experts at Paradigm Capital Management before you buy penny stocks. Our three decades of experience provides an exceptional level of insight that is reflected in our high-conviction portfolios.

Also read:  Uncovering the Potential of Penny Stocks

Traders use the term penny stocks to describe shares that sell for less than $5.00 apiece. Also known as micro-cap stocks, this stock generally have a capitalization of between $50 million and $300 million. Stocks with capitalization below $50 million dollar are Nano-cap stocks. These stocks are much riskier than traditional stocks, they are subject to less rigorous filing and listing standards, and they are prone to volatile price swings. Some micro-cap stocks are officially listed on the "NASDQ", and these stocks are subjected to more complete and comprehensive regulations. This is where the most official penny stock trades occur.

The "Over the Counter Bulletin Board" (OTC-BB) is another way to participate in official penny stock trading. Trading it over the counter does not require the use of a broker. YOU can open an online account with any of the most popular discount brokerage firms and find a platform and fee structure that meets your needs. The bids are placed between individuals via phone call or on-line trading platform. It has been officially de-listed from the major stock exchanges, due to bankruptcy or financial issues. Since these stocks were once listed on the major exchanges, they are required to file annual reports and quarterly earnings statements with the Security and Exchange Commission (SEC). Other companies may be trading on the OTC-BB because they are not quite ready for prime time, and they are using this experience to measure investor interest. These stocks are good bets for official penny stock trading, and may prove to be less risky than stocks traded on the pink sheets, especially if you are investing for the long term and not looking to make a quick profit.

The pink sheet is the daily digest of it available. It is compiled by the National Quotation Bureau and publishes the bid and asks prices of over the counter stocks. This is the official listing for most of these stocks. In order to be listed on the pink sheets, a company must file a compliance form with the OTC Compliance Unit. Companies are supposed to list all pertinent financial information. The more open a company is to publicizing their books, the more credible and less risky their stock will be. Companies listed on the official penny stock trading pink sheets are not required to file any financial paperwork with the SEC. This makes finding unbiased research very challenging. Without solid information and research, traders can manipulate pink sheet stocks. Investors in pink sheet stocks should understand the inherent risks in these types of stocks and plan accordingly.

While the biggest appeal of pink sheet and these stocks are their low prices, investors need to understand the inherent risk involved in these undocumented and unregulated stocks. A penny stock investor needs to create and adhere to a much disciplined investment schedule - and understand that these stocks are much riskier than more traditional stocks. By using official penny stock trading websites and resources from Paradigm Capital Management , you can hedge your bets against market and price manipulation.

Also read: Paradigm Capital Management Ways to Manage Risk with Penny Stock Trading