What Are The Best Penny Stocks To Buy Today?

Best Penny Stocks to Buy

Best Penny Stocks to Buy

What are the best penny stocks to buy today? This is the sort of question I get every day, but it’s a trick question as the answer changes on a day to day basis, and sometimes can shift drastically during the course of a single day. You constantly have to be on top of your studying and research to figure out the answer and trust me, it helps BIGTIME to get mentored on the process in my trading challenge.

Here, I’ll dish on some tried and true steps that you can take to determine what penny stocks are worth your time on any given day if you want more details to read this new book and also watch this free penny stock guide ASAP. By asking yourself these questions, you can better determine the best penny stocks to buy today.

1. Do you know what you’re doing? Before you can pick the best penny stocks to buy today, be truly honest with yourself…do you know what you’re doing? Do you understand how and why stocks move, how to read a stock chart, and how to research catalysts and volume? Remember, it’s okay not to know much or even anything, my trading challenge teaches the most basic stuff, but it’s those basics that are crucial to your eventual success in an industry where 90% of traders lose money!

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If you don’t know these penny stock basics, then you have bigger things to think about than what penny stocks to trade. You need to figure out how penny stocks work, period. I know it might not be any fun, but it’s important to learn the basics before you start trading; otherwise, you’ll basically be gambling with your hard earned cash.

Here’s what you need to do ASAP. Go and read my FREE Penny Stock 101 Guide. Consider applying for the Tim Sykes Millionaire challenge. These resources are here to help you succeed so that you’ll know what to do with penny stocks.

2. Are you prepared? Are you mentally prepared to trade? I mean that in a literal sense. If you’re waking up 5 minutes before the market bell, you’re far more likely to make mistakes. Do yourself the service of giving yourself time to be prepared for the trading day ahead. It is a millionaire habit that makes a big difference.

I’m extremely enthusiastic about waking up early. It gives you a chance to get various tasks out of the way and to do some research so that when the market opens, you’re mentally prepared to trade. Being in the right mindset will help prevent you from making dumb decisions in trades, which means fewer losses.

3. What’s going on in the market? Before zeroing in on specific penny stocks, consider the market at large, as it is right now. For instance, if the market is slow, you might not find many spiking stocks or big gainers. You can’t force the market to function how you want it to, so don’t try. It’s better to go with the flow so use this tool daily and stay updated with the hottest stocks.

Sometimes, the answer to “what are the best penny stocks to buy today?” is simply none of them. Let the market dictate that: never try to force a trade. It usually won’t end well if you try to make it happen!

4. What stocks are gaining in volume? Looking at a stock’s volume is important in determining whether or not it is worth trading. The volume can be determined fairly easily: just look at the number of shares being traded throughout the course of the day. Look at the volume of both buy and sell orders. If the action is high in either direction, the higher the volume of the stock. A high volume stock is simply one that is being traded in large amounts, whether it’s going up or down.

As I said, the high or low volume of a stock can help you decide whether or not a trade is a good move for you. To offer an example: say you see a stock trading with high volume. You can then determine that it’s worth looking at further because the more movement there is around a stock, the higher the demand. Looking carefully at a stock’s movement should be a big part of your research when choosing which stocks to buy on any given day.

5. What does the chart say? Once you’ve looked at volume, it’s important to take a closer look at stock charts to determine if there are any patterns at hand. Identifying patterns is something that you can do by looking at a stock’s performance over time.

Charts and patterns are the name of the game for me. Personally, I’m not any great mathematician, nor do I excel at reading complicated financial statements to determine if a company is good or bad. But when I view thousands of stock charts when stocks go up or down, I find that it’s not hard to see patterns at hand.

Moreover, while no two stocks or patterns are exactly the same, history does repeat itself. So, for me, the key to success is studying past patterns and being prepared for future ones that are similar. I often refer to myself as a history teacher in this way. Some of the best students in the Tim Sykes Million Challenge team are great at spotting patterns which have worked in the past.

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6. Is there a pattern that suits your trading style? Just because there’s a pattern at play doesn’t always mean you should make a trade. You have to consider whether or not the pattern at work in the chart is one you feel confident with. Every trader has his or her own unique style.

For instance, I love a pattern called “the Supernova”. This is one of my ideal patterns, and I’ve made hundreds of thousands of dollars on this type of trading over the years. Having specialized in this type of trading for nearly two decades, when I see this type of pattern emerge, I am more confident about making a trade. While risk is part of gaining rewards, you can stay safer by sticking with patterns you’re comfortable with…this classic penny stock pattern is working well right now too!

7. What are the catalysts? A catalyst is anything that might affect a stock’s value to investors. Some examples of catalysts might be the release of earnings reports, big new investors, or new products or contracts. These types of news can make a stock spike for days or weeks. But don’t just take them as the gospel. Always be sure to do your own research after identifying the catalyst, to determine if it’s the real deal. Which leads to the next question…

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8. Have you done your research? Even considering everything you have so far, you must do more research. It’s not just about comparing a catalyst and a spike. You also have to independently look into the validity of it all. If there is a catalyst, for instance, it could be a press release that is very self-serving. A company isn’t going to be highly inclined to paint itself in a negative light. So don’t just believe everything you read. Be doubtful, and always do your own research. It could make a big difference between earning and losing on a given trade.

9. Are you prepared for the outcome? To be successful in a trade, it’s important to prepare yourself for all outcomes. For many traders, having a trading plan in place can be extremely helpful.

Basically, a trading plan is like creating a roadmap for your trade. You plan out the trade ahead of time. You first evaluate your personal risk tolerance level and decide how much you want to invest. Then, you decide a specific entry strategy. For example, it must meet x,y, and z criteria for you to pull the trigger to get into a trade.

But you don’t just consider when to buy. You also consider when to sell. If you’re starting to lose in a trade, determine ahead of time when it’s time to say when and get out. Also, consider what you’ll do if you profit. It can be easy to hold on too long, so decide at what point you’ll declare it a win and be willing to get out.

Thinking about these things before you have money in a trade is very helpful and allow you to keep a level head during the process. Many traders fall into the emotional trap of wanting to make a trade work. By having a trading plan, you’ll keep yourself accountable and will minimize potential losses.

10. Are you ready to learn from this experience, no matter what? Before you decide what are the best penny stocks to buy today, get yourself in the right mindset. If you’re approaching trading from a place of scarcity and are feeling desperate, you’ll make bad decisions. However, if you’re calm and open to the experience that comes with it, you can stand to gain knowledge at the very least. Always do your best and try to be profitable, but always resolve to learn from the experience, no matter what.

In conclusion, there are many things to consider when figuring out the best penny stocks to buy today. By asking yourself these questions before you trade, you’ll have a leg up on the market and will be more likely to make intelligent trading decisions.

So, leave a comment below if you understand that choosing the best stocks to trade involves SEVERAL indicators and it’s crucial to pay attention to it all!

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