Penny Stock Watch
Curated high-interest, low-priced stocks (under $5). These are highly speculative plays with massive volatility. Filtered by volume.
How to Trade Penny Stocks Safely
The Float Matters
The "float" is the number of shares actually available to trade. A very low float (under 10M shares) means a small amount of buying pressure can send the stock skyrocketing—but selling pressure will crash it just as fast.
Beware the Offering
Penny stock companies rarely make money. They survive by issuing new shares (dilution). If a penny stock runs up 100%, expect the company to drop an offering to raise cash, instantly crushing the price.
OTC vs. Listed
Stocks on the NASDAQ or NYSE have strict reporting requirements. OTC (Over-The-Counter) or "Pink Sheet" stocks have far less oversight. OTC plays are often pure speculation.
Volume is King
Never buy a penny stock with low volume. If there are no buyers when you want to sell, the stock price doesn't matter. Look for millions of shares traded daily.