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If you want to get the best results in the stock world, you should always consider investing in penny stocks as well. Just because they have a share price of less than $5, that doesn’t necessarily mean they are a bad investment. On the contrary, if you know how to start penny stock investing, you can make some really good profits.

Plus, the fact that these have a very low price does allow the investors to hold a lot of capital, even if they invested a very small amount. So yes, even if the initial investment was rather small, even a gain of a few cents from each share can lead up to some significant benefits in the longer term. But as you can imagine, there’s a fair share of risks in here as well. Dealing with these penny stocks isn’t always going to be easy, but it can deliver a great value in the end.

Where should you look for penny stocks?

That all comes down to you and what platform entices you as a penny stock beginner. NASDAQ and the NYSE are a very good option in this situation. Keep in mind that some of these platforms have their own listing requirements, so you have to learn their terms. The best place to trade penny stocks would be at the over the counter bulletin board and the pink sheets. The latter one is a quotation publisher, while the over the counter bulletin board is legitimate and easy to use.

How to pick the best penny stock, broker?

If you want to start investing in penny stocks, you need to find the right brokers. Yes, brokers play a huge role in the trading world. They offer you the means to trade, and they can also bring in the information needed for trading. You should study their commissions and fee structure. At the same time, a penny stock beginner will be more focused to find a broker that requires a low flat rate per trade regardless of the amount. Even if you don’t invest a lot, you want to avoid paying too many fees. It just doesn’t work the way you want, and in the end it’s one of the issues that you may need to avoid for sure.

Usually, the best penny stock brokers will have a dedicated trading platform and even a mobile app. The broker will also have some large order surcharges, a minimum deposit requirement, withdrawal charges and so on. Study all of these; then it can be rather easy to find the broker you want.

Be aware of scams

If the broker seems too good to be true, then you may be dealing with a scammer. Checking some reviews online will help you a lot. There are plenty of sites and customers that share which brokers are scammers and which are legit, so try to use those. If brokers have claims without any proof, their newsletter isn’t professional, and they enter unofficial promotions, then you may be dealing with a scammer.

When it comes to various investment traps, you will mostly have to deal with long-term averaging techniques, pump and dump schemes and short and distort schemes.

Open the account and start trading

Once the account is open, you have to determine the stock that you want to trade. It’s a good idea to start with a niche if possible. Narrowing down the stocks that have a price under $1 is a great starting point for the penny stock beginner, so try to keep that in mind. Thankfully, most penny stock brokers have filters which help you find the stocks you want without major hassle.

Volatility is a problem in the penny stock investing world, but it can also deliver plenty of profits. After all, the idea is to purchase when the price is low and sell stocks when they reach a peak value. It’s the best approach you can have, but you need to understand the risks involved here, especially as a penny stock beginner.


Is it a good idea to study the market and stock prices before you start penny stock investing? Absolutely, you never know how the stocks may go up or down in price. That’s where the risk comes in because you never know what and how can affect the stock value. That doesn’t make these stocks bad in any way, but it does bring in front a ton of risks. You may or may not want to take risks like that. However, one thing to note is that penny stocks are not long-term investments. They are more of an opportunity to earn money quickly. So, you should always invest with this idea in mind!

There’s no denying that penny stock investing can be a bit tough at first. But you can get some very good results if you start working with penny stock brokers. The idea is that you buy penny stocks and try to sell them for a profit.

Where can you buy penny stocks?

A good idea when buying penny stocks is to try and find a good OTC or large exchanges. The pink sheet market also works here. The transactions have to be carried by a broker, as this way you can get the best results. Plus, brokers are required by law to help you get the best outcome, so that’s definitely one of those things that you need to take into consideration.

Steps to follow when buying penny stocks:

  • The first thing you want to do is to identify the penny stock type that you need to buy here. As we mentioned earlier, opt for the large exchanges if you can. The OTC stocks are also good, but they are mostly unlisted, and as a result, there’s no central exchange for the market.

  • You need to understand where the stocks trade and you should also see some stock history. This way you can see if they are offering a good potential or not. Researching is mandatory before you start doing any penny stock investing.

  • Once that is done, open a brokerage account. You are required to find a broker that helps you deal with these transactions. The OCT securities orders have to be performed via the market makers. These makers carry the inventory of securities.

  • Using the right penny stock brokers is essential here. You don’t want to handle with brokers that have a bad reputation. Some of the newer brokers may offer some discounts and benefits, and they can be a good option. But on the other hand, there are scams out there as well. So, you have to know exactly what you want to invest in and what you want to avoid to get the best results.

  • Before you start trading, it’s a good idea to study the platform. Studying the trading platform makes penny stock investing faster and better. You also get accustomed to the process a lot faster, which in the end also delivers a more comprehensive and distinct experience.

  • Once you are familiar with the desired penny stock brokers, you need to fund the account. Most platforms tend to have a specific deposit range, so you should consider that. Keep in mind that you should have enough funds in your account. Most penny stocks are time sensitive, so you have to take action quickly.

  • It’s important to place trades using limit orders. This way you can be certain that the order doesn’t fill higher than you anticipated. It’s just one of the best ways to protect yourself in such situations, and the system works rather well.

  • Even if you invested in penny stocks, you still have to monitor them. Price swings are normal, so you shouldn’t be worried if the stocks end up at a very low or high price rather quickly. In case you see a good price, it’s important to sell your penny stocks fast. After all, your primary purpose here is to make a profit the best way you can.

The penny stock purchase process will differ based on what exchange/broker you use. While the first purchases can be seen as a test, you should always try to perfect the way you buy stocks from penny stock brokers.

Should you use an online stock tool?

Absolutely, it’s a very good idea to use all the penny stock tools you can find out there. is an extraordinary tool designed specifically to offer you penny stock quotes, as well as information, education, and news pertaining to the penny stock world.

The focus when working with penny stock brokers is to receive important information which will help you initiate the right purchase. With the right, updated penny stock information you can indeed opt for the right investment. While it’s not going to be easy to find the right brokers for you, it’s tools like that can help you go towards the right direction and obtain the amazing experience you always wanted.


As you can see, buying stocks from penny stock brokers is not that hard as long as you take your time to learn and master the process. Make sure that you work only with reputable brokers, just to ensure that you don’t have to handle any losses. But as long as you take your time and invest wisely, the results can be quite astonishing!

A lot of people are trying to invest in the more expensive stocks with the idea of making a profit. But the reality is that sometimes even the less expensive stocks can still deliver the results you want. That’s why you may consider penny stock investing, as it does work very well. But what are penny stocks and why should you invest in them?

What are penny stocks?

The penny stocks are small-cap, low-priced stocks. Despite their name, they don’t cost a penny, usually their price can be around $5 or less than that. In fact, most stocks under $5 are called penny stocks. But their name shows how inexpensive these are, yet they can be meaningful if you use them the right way.

Even if penny stocks are listed on NASDAQ or even NYSE, a lot of people don’t look up penny stock information or anything similar. They believe that penny stocks aren’t as meaningful as the more expensive ones.

Should you consider penny stock investing?

That all comes down to how much investing experience you have. A good investor that knows how to study the market and extract penny stock information can make a good profit from these. But if you don’t have the experience you do need some penny stock help to get the benefits you are looking for.

The way you can make profit on this type of stocks comes down to market volatility. The idea here is that prices do tend to go up and down all the time. The problem is that you don’t know when penny stocks can be successful or not, unless you have the right amount of experience.

Are there any risks?

As you can imagine, you have pretty much the same risks as any stock investment. The benefit here is that risks are a lot lower, since you’re not investing a lot of money. But it’s the low liquidity and poor reporting standards that can keep most people away. That doesn’t mean it’s a major problem though. Penny stocks are known to be fodder fir scanners.

But you shouldn’t be afraid to opt for penny stock investing anyways. There are always going to be problems and challenges. Yet as long as you know how and when to invest, you will be quite ok in the end. Yes, penny stock investing is not for everyone, but some penny stocks can deliver an amazing return on investment.



You should always seek penny stock help before investing. At the same time, study all the penny stock information you can find online. Usually, penny stock investments are great for beginners that want to try out their luck and learn more in the stock world. It’s an amazing, distinct experience and one that ends up delivering plenty of interesting ideas. It’s safe to say that penny stock investing does have its inherent risks, but the return on investment can be really good. You just have to continue pushing onward and taking risks if you really want to reach success.

We changed our symbol updating system. In the testing process it had some issues with de-listing a symbol if there was an apostrophe in it's company name. This issue has been fixed but, some stocks might have missed 1 day of data which will cause some incorrect 14 day data. If the company name has an apostrophe, you can assume they were affected and to take this into consideration while looking at their stats.

Even though there was this minor hiccup, our automated symbol updating system is working and will always give us updated symbol lists.

Today we put the final tests on our stock pickers new brain. After a month or so running it in beta, then another few weeks tweeking it, we are now ready to push it live. Our old picking system used a simple system to predict momentum, but with that it's tough to predict the end of a run for a stock, specially a penny stock. So we decided to turn our simple system into a 4 tiered system of goodness. Yes, 4 f-ing tiers. Each tier works with their own filters in place, they get more strict and collect more/different data as the tiers and conditions go higher. This makes a system in place that can see what makes the market or a stock shift, what are the indicators for this. It is a short-term collector, only working with 15 days of data. Like the movie iRobot all tiers and conditions follow a certain set of rules, but 8 set rules instead of 3. They are things we set in stone that a stock must have to be a pick. Mostly spread history, trade history, price history and a few other things. Just from those rules we end up with 50 - 100 stocks to pick from(depending on the market). That's where the rest kicks in to find the best ones in the group... Well the best one it thinks are the best.

Read more: Wolf Picks update - picking system gets new brains

Hi everyone, it has been hectic here getting all algorithms situated and working. Things have been smoothing out with the numbers and our learning system is ready to start testing Dashboard 2.0. The algorithms will all be geared towards the best stocks to look into within certain technical specs. Before stocks were listed raw with no process to weed out bad eggs, but now it is getting smarter on how to weed out bad eggs and what makes a stock with that technical spec historically rise the following day. This does not mean the stock is a sure thing, or that you should invest in it. But it will be easy for you to find stocks by certain tech specs to look further into, hoping that historically with it's current number it should rise within a day or 2. This is no certainty and our new 100 point learning process for the Dashboard is still a baby, it needs more historical data to get better but, it is at a nice testing phase right now.

Read more: Dashboard update - Version 2 on the way!

StockWolf is dedicated to Penny Stock quotes and data to provide information, news, and education on penny stocks to help in your due diligence.

30min+ delay on data. All data is picked with automated algorithms and not vetted for accuracy. Please, read ALL information and disclaimers before using our service. StockWolf is not a licensed financial adviser, and not liable for your loses. Trade responsibly. This site is for education purposes only not a recommendation to buy/sell


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