How do you find penny stocks to buy today? That’s the question that’s mulled over by eager day traders all the time. Few day traders ever get a satisfactory answer; nor do many ever get pointed in the right direction. Since direction is everything in day trading penny stocks to buy today, we believe this short piece is a fitting guide for you to use.
Penny stocks, just to bring the basics back to the fore, are those stocks that trade for less than $5. This is a hard definition set by the Securities and Exchange Commission (SEC) and it gives a whole heap of credibility to the term penny stocks despite some mutterings to the contrary. Why is this? Because, as you read this, there are perhaps hundreds of companies on the NASDAQ that are trading at, or below $5. So penny stocks are not the big scary monsters some people like to make them out to be. In fact, once you learn how to find the best penny stocks to buy today, you’ll reach a whole new level of appreciation for these trading instruments.
Penny Stocks to Buy Today – Where To Look
Many day traders take on the work of finding the best penny stocks to buy today. This isn’t a bad option provided you know what you are doing and where to look.
One of the best places to find penny stocks to buy now is Finviz. On there you’ll find a snapshot of the days hottest movers. Finviz has a fantastic filtering tool that allows the user to define parameters across a broad range of metrics. Whether you want to filter by industry, market cap, volume, price, you name it. That’s the place to look in the first instance, but how do you know what to look for? To do so effectively you need a standard set of metrics – a system if you will – that will help you narrow your focus and unearth the kinds of penny stocks to buy today that match your trading goals.
Penny Stocks to Buy Today – Know Your Parameters
At a minimum you should be looking at stocks that are trading with some level of healthy volume. There are no hard and fast rules here but the savviest day traders have a minimum threshold of 100K in terms of volume. The truly skilled might go lower, but if you are really just getting started executing trades you should probably stick with 100K volume. Once the volume is sorted you can begin to factor in other metrics. In terms of price action the indicators most relevant for day traders include Relative Strength Indicator (RSI) and Simple Moving Averages. Both these give some indication of the momentum of a stock and should never be ignored. Once you are satisfied that you’ve narrowed the field, you can then execute on your trades.
Penny Stocks to Buy Today – The Easy Alternative
Of course that’s not the end of it. Suppose you don’t want to spend hours on Finviz or other sites trawling for the best penny stocks to buy today? Suppose you want an easier option? In such circumstances the best alternative is to find a credible and reliable newsletter and subscribe for alerts. These aren’t difficult to find. So long as you observe a few important guidelines you should be fine. At a minimum try not to sign up newsletters that want money up front for picks. The best newsletters are 100% free so always try your luck with those first. A good one to start with can be found here. Have a look around and see if you like what they offer. If you are persuaded (they are 100% free to join), simply sign up and start receiving alerts.