How to find Penny Stocks

 ✅ Step-by-Step Guide to Finding Penny Stocks

🟢 Step 1: Understand What a Penny Stock Is

• Defined as stocks trading under $5 per share

• Often listed on OTC markets, but some are on NASDAQ/NYSE

• High risk, high reward — be cautious

🟢 Step 2: Choose a Reliable Stock Screener

Use a stock screener to filter thousands of stocks to your criteria.

Recommended Free Screeners:

• Finviz

• Yahoo Finance

• TradingView

Step 3: Set Your Screener Criteria

Example Filters:

• Filter	Example Setting	Why
  Price	Under $5	To find penny stocks
  Market Cap	Under $300M (micro/nano-cap)	Targets small companies
  Average Volume	Over 100K	Ensures liquidity
  Exchange	NASDAQ / NYSE / OTC	Choose where to look
  Sector	Optional	Target biotech, energy, etc.

🟢 Step 4: Research the Companies

• Now that you have a list of penny stocks, do your homework on each.

Check:

• • Company website

  • SEC Filings: https://www.sec.gov/edgar/searchedgar/companysearch.html

  • News and press releases

  • Balance sheet, income statement, cash flow

  • Products/services offered

🟢 Step 5: Analyze the Stock Technically

• • Use technical analysis to spot entry/exit points:

    • Support & resistance

    • RSI (Relative Strength Index)

    • MACD (Moving Average Convergence Divergence)

    • Moving Averages (50-day, 200-day)

    Use charting tools like:

    • TradingView

    • StockCharts.com

    • Yahoo Finance Charts

🟢 Step 6: Use a Brokerage That Supports Penny Stocks

• • • Not all brokers allow OTC trading.

Brokers that do:

• • • • TD Ameritrade

      • Fidelity

      • Charles Schwab

      • Interactive Brokers

      • Webull (limited OTC)

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🟢 Step 7: Set Risk Limits and Trade Smart

• • • • Use limit orders (not market orders) to control entry price

      • Never risk more than 1-2% of your capital on a single trade

      • Be disciplined with stop-loss and take-profit levels