In this article, you will learn how to find penny stocks on Yahoo! finance that are ready to gain in value. If you want to uncover a huge list of potential penny stocks, then check out the best penny stock screeners.
Step 1 – Go to Yahoo! Finance Biggest % Gainers
Go to Yahoo! Finance Market Movers and select the “Nasdaq” in the top right hand corner. Most penny stocks trade on the Nasdaq exchange due to their lower stock prices.
Next, select the “% gainers” tab to identify fast moving penny stocks. You will find a nice list of stocks trading around $1 that are good candidates to trade.
Step 2 – Open Up the Daily Stock Chart
Click the ticker of a good rising stock and take a look at the chart. Notice the daily highs and lows to see if you can find an entry point.
Take a look at the daily volume to see if the stock has wind behind it. Generally, a fast moving stock will have trading volume of at least 500,000 shares or more.
If you find the stock near the daily bottom, you can enter to profit from a quick bounce in intraday trading.
Step 3 – Search Yahoo! Finance & Google News to Search For Catalysts
If the stock is fast moving, it may be due to a recent email promotion, positive news article or recent product release. Some penny stocks are dangerous because the spike happens so quickly. Search Google for more related information to see exactly who is promoting the penny stock.
Step 4 – Determine an Entry Price then Use Stop Loss Orders
If you're ready to buy, write down your max entry price on a piece of paper so you don't chase the stock price during intraday trading.
After you complete the order, I recommend using a stop loss or trailing stop order to reduce risk and profit your profits.
Penny stocks move very fast in either direction. Set up an automatic system to lock in profits or minimize losses in case you are away from your computer.
For Advanced Penny Stock Investors Only
Yahoo! Finance is a great tool for discovering penny stocks that investors should be aware of. Always do your research, firmly establish your buy price, and always have an exit strategy in place to maximize your profits while protecting against huge losses!
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Tarik Pierce is the founder of InvestorTrip.com and regularly contributes articles to this website.
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While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.