Penny Stocks Weekly Free Unbiased Newsletter

Having real time information and Level II quotes is essential in the fast moving world of Penny Stocks.

Even if you feel your longer time horizons make getting quick executions where you want them not

important, getting in and out at the exact right time will help you realize those paper profits. Be sure to

check with the broker you plan to use to see what is required to access their most advanced trading

platform. Doing whatever it takes to get this kind of platform for free will save you tons of money as

compared to buying expensive software, and paying hefty monthly fees for each and every feature. The only

thing you may want to pay for is screening functionality. There is simply no free service that can screen for

the real liquidity you are looking for in Penny Stocks. Some services allow you to screen and sort stocks by

price, Trades Per Day and Dollar Volume, and these are the types of features you want to look for.

Currently, we believe the best screening service for Penny Stocks is from EquityFeed

.com

A stocks fifty-two week high and low can allow you to gain insight into the future stability of the particular
equity. Stocks with tighter bands tend to be more stable, while stocks with wide ranging prices over the last
year may be less stable, more dangerous and volatile. Stocks with wide ranging 52 week bands that are
closer to the lower band can often signal a spiral that ends with all investors loosing everything. These are
the kinds of stocks that should be very lightly weighted in your portfolio, and are stocks in which you should
probably have shorter time horizons. Stocks with a tighter range, that are in the upper half of the band tend
to be more stable, are seen as higher quality, and can stand more weight and time in ones high risk
portfolio.

The first place you look to try and determine the seriousness of the

company is at

it's Company

Officers. The shear amount of management is

important, but what is

more important is the history of each

figure. Try doing

a search in the SEC

database for each member of management, and you

may be

surprised at what you

find. Often, we find someone who has ran

many a business strait into the ground

time and time again. These are

obviously the ones to avoid. If you really want to

do some digging, try

running a

simple

Google search on these individuals.

Insider and institutional activity can be important to take a look at as well. If insiders own more than 50% of
the company, they can and will make all of the decisions, and other shareholders votes will be useless.
This does not necessarily mean that we will be sticking around long enough to vote on important issues,
but it is important to be aware as we often see management make poor decisions, and a kind of
shareholder revolt that can really move a stock. Sometimes stocks are almost completely controlled by
management, and when a company like this is doing great, we do not mind tagging along for the ride.
Institutional and mutual fund ownership is rare in the world of Penny Stocks, but when we do see
substantial big money interest, it can often be a great sign. Sometimes, however, companies strike a deal
with smaller firms to hold a tiny amount of shares, just so they can show institutional ownership.
Thankfully, transparency has evolved to the point that we can see exactly how many shares this firm is
holding, and it is important to multiply this number by the current price to gain a real perspective as to
exactly what kind of an interest they may have.

The companies transfer agent can sometimes be helpful in smaller companies with

large amounts of

shares outstanding. You can call

the transfer company and

obtain a physical copy of your ownership

record, or stock certificate. This will

keep your shares from being lent to

short sellers by your broker.

Contact the

company directly or their investor relations firm if you do not understand something

they do, see

discrepancy in their financial statements, or need to know how