Best Penny Stocks
We show you the best penny stocks, and how investing in them could really put you on path towards profits.
There are a lot of penny stocks that have significant risk associated with them. For example, the company's business plan is ridiculous and they are burning cash like crazy, with nothing to show for it. A stock like this may sink in price, if not drop to zero in a short amount of time.
Luckily, the majority of these penny stocks that don't measure up tend to have telling warning signs that makes them easy to spot, and therefore easy to avoid.
Our job is to find the best penny stocks and put them through a rigorous process called Leeds Analysis. This helps us identify the best and worst stocks before our team makes a recommendation to the newsletter subscribers.
If you want the best real-time stock picks from our team, we suggest signing up for our $19.99 e-mail alert service. See the full list of newsletter benefits here. You can also check out some of the previous picks that were given to newsletter subscribers and see how they performed on our track record page.
There is a wide range of broker options available to traders right now. Check out our comprehensive review of some of the top penny stock brokers, or view a larger version of the infographic below by clicking on it. This compares brokers by commission, minimum investment required, extra fees, brokerage email and phone support, and email response wait times.
Tips for Picking the Best Penny Stocks
First of all, never trust any information about penny stocks that you get for free. While 1% of free info about penny stocks is trustworthy and helpful (like anything you get from Peter Leeds), the other 99% has hidden motivations and actively works to mislead you to buy promoted penny stocks of questionable quality.
Also, avoid penny stocks that are trading on the Pink Sheets. That is where the majority of lower quality penny stocks gather, because the reporting requirements are so slack, and the listing fees are so low.
Look for a strong business plan and results (Check the financials to see if they are making more money than they are spending, and if their operational plan makes sense). Do they seem to be sustainable? How much is news and hype affecting the stock price in either direction?
If you want the top penny stocks, stick to the best markets, like the OTC-BB, Amex, and Nasdaq.
If you want the best penny stocks, trust the best analyst, Peter Leeds.
Avoid internet technology companies that you don't understand. Lots of these stocks will have high p/e ratios but will have no plans to even monetize their user base or web traffic yet. You are betting on things that are not yet proven and companies that could be a thing of the past before anyone even tries to monetize the platform. This is an area where your gut instinct and nack for internet trends can make you or break you.
If you want the best penny stocks, look for those shares that pass Leeds Analysis - specifically, top companies that have proven management teams, growing market share, strong financial results, and solid fundamentals.
Try to stick with stocks that have a good daily avg. trading volume (this will make it easier to trade shares, and can magnify any upward price movement).
Look for a trend of improvement (Share prices go up the most when a company has momentum. If they keep making more money each year than they did the last, the shares will probably benefit as the company grows.)
Learn from the opinions of professionals, even if you are doing lots of your own research. The analysts and experts are wrong just as often as they are correct, but they often give you some valuable information.