This article of our Stock Trading Course for Beginners will focus on how to research penny stocks. You will learn the best screener, what settings to use, and the process of research.
One tool that every trader needs is a stock screener. Stock screeners are programs that take various settings like minimum price, volume, percent change, and then search to find which stocks meet those criteria. There are many stock screeners available for use. Some screeners are free while others are paid. They can come built into trading platforms or be online. The best screener you can use is FINVIZ.
You can look through data on FINVIZ for free, but you should subscribe to take advantage of all the features:
- Realtime Data
- Intraday Charts
- Custom Indicators
- Preset your Screener
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Using the Screener
1. Go to the Screener tab.
2. Set the Signal to: “Top Gainers”
3. Set the Current Volume to: “Over 200K”
4. Set the Price to: “Under $10”
5. Go to the “Technical” Tab
6. Set the Performance to: “+10%”
Once you have your list of stocks, you can select each one to see the intraday chart, or mouse over them for a small preview window. You can save these screener preferences to access the list more quickly.
How to Research Penny Stocks
- Use FINVIZ screener.
- Perform Technical analysis.
- Read headlines and news articles.
- When you open a stock’s information on FINVIZ you are presented with the chart. Below the chart is a table of Fundamentals, and below that is the stock’s last upgrade, downgrade, or reiteration. Below the stock’s status is a list of news articles related to the stock with the dates and times of publishing.
- Any positive coverage on a stock is an indication of confidence that may be helping to drive the price up.