It's also important to evaluate the stock if there's any info available and get an idea if the risk of losing your $ is below average and if there is any realistic potential for the stock to move up. I've bought a few for under $1 that eventually jumped up into double digits - mostly in the energy sector. I've also bought some in single digits that shot up well into double digits in short time periods. If the company has a unique product or service or is now or soon to be generating tons of bottom line or even top line growth, there's a good chance it will shoot up. I've recently made small fortunes in fuel cell companies like BLDP and also FCEL and PLUG. And also in solar industry and nat gas companies such as LNG and DQ.
There wouldn't be any LEGIT penny stock money making websites because if such things were public, the stock pumpers would never be able to make money. Deal with it: this is an exclusive club. Either you're in it or you aren't. Do scrounge around public forums/websites looking for the next "in".
The Internet is a big, twisted, topsy turvy, amazing and at times convoluted place. Because of this I do believe it is possible to find legit sites of every sort. Hey, if you want to you can even find legit sites on how to rob a bank (not that I'm promoting such a thing). But the point is, legit and non-legit sites both exist equally on the big bad Internet. But skepticism is at an all time on, and legitimately so. Consequently finding something as valuable as a "legit penny stock" website isn't going to be easy. I was looking at about a dozen sites of the last couple of hours, and of those dozen or so"Falcon Stocks" looks pretty good. I'm not saying they are my recommendation, at least not yet, I am still doing some homework but I like what I've seen so far. But I'm all ears if someone has positive or negative things to say about them or if they have another recommendation entirely.
If there are fundamentals - strong cash flow, strong revenue / earnings / margin accelerations, substantial assets such as huge oil / gas reserves or promising drug pipelines, etc - there is a better chance it will go up eventually. Healthy volume and institutional interest are also good indicators that there is perhaps something there. Most people wrongly assume that because a stock is currently valued at a penny that it "has to go up". That's not true. Penny stocks are often (certainly not always) priced where they are for a good reason. And if there are no fundamentals, volume, or institutional interest, it probably won't go anywhere.
I would stay away from penny stocks. I used to work for a market maker on the CBOE and we traded penny stocks. There are literally no rules because it's not regulated on an exchange and lots of shady stuff happens on there. If you want to compete with ph.d students from MIT who are writing algorithms to beat the market then go for it, but I think it's best to focus on fundamentals.
I think I will put this idea on the back burner then. Maybe I will look at forex instead. That seems quite well regulated and trustworthy. Thanks for the post where you said about penny stocks being shady.
I don't believe you need a penny stock specific website. I use Scottrade.com. With them you can purchase penny stock. All the leg work is done for you with this company. You simply buy, collect dividends, and or sell stock.
Keep your investment extremely low. The chances of failure are incredibly high. I would advise you to keep saving until you can purchase a stock from a more trusted source.
Have you had any troubles with Scottrade.com ? I see a few conflicting reviews online so I'm a bit fearful of it.
