The penny stocks to watch section has been created to help you find potential penny stocks that are poised to make an up move within one to two months. what is more important than identifying these stocks is the art on how to watch them and the right time to pull the trigger and place your buy order. It has been my experience that waiting patiently for the right time to place a buy order has proved to yield superiour results as compared to buying on impulsive feelings. The simple trading plan calls for identifying a potential stock candidate, watch for an entry criteria, place a buy order, sell at a pre-defined modest profit target and bank the money.

        An ideal example that watching a pennystocks pays off big in the very short term is SuperConductor Technologies (SCON). SCON was originally on my watch list as it has not showed significant activities. However, it popped up immediately after it's volume had increased significantly. A quick check at their news showed that the

company had entered into a $15 million investment agreement with a chinese company that operate various business in different market sectors. The first opportunity here to apitalize on is the freshly issued news where fast bucks could be made easily as the news was almost straight forword and clearly positive. The second opportunity that almost most small novice traders miss and often join late is when the company issues another positive release sometime in the future. Here comes the power of watching or keeping an eye on the future developments of this company.

       

        The advantages of penny are really advantages if you know how to properly use them to increase your wealth. This is so because penny stocks are highly speculative and mostly manuplated in nature. If you don't have a carefully studied trading plan on how to locate them, what capital to invest in them, and where to buy and sell, you'll most probably end up losing most if not all your capital.

        On the other hand, if you know what you're doing, you'll have more winners than losers and accumilate wealth gradually. Penny stocks are very low in price which gives the small investor the opportunity to participate in them. A penny stock offers more leverage than a high-priced stock if things went right. For example, a penny stock can easily go from 2 cents per share to 4 cents per share hence yileding a profit of 100%. However, a stock priced at $50 per share will have all odds in the world agaist it to increase to $100 per share which is a 100% increase as well. Although examoles of penny stocks that have appreciated to unbeleivable levels in a very short time are countless, I'll just give an example of a penny stock that have increased by more than 900% in less than 2 months. In otherwords, if you threw $200 into it, it would have increased in value to $20,000!

        Other penny stocks that were on the watch and have made it really big making many traders happy were, SGCP (+500%),

NXGB (200%), SLVO (+700%) and many many more. This is just to show you the power of penny stocks.

        The question here is, can we come across penny stocks that will give us this oppoprtunity? The answer is surely yes but it is not easy. You should build you trading knowledge as well as your trading mentality to be able to do that. Sorry, but you've got to have the knowledge. Nothing is is in life if you don't spend the time to know its ins and outs. This is the truth.

       

         As we we have learned that poenny stoicks can increase 100% very easily, they decrease 50-90% very easily as well and this decrease is mostly due to sellers (traders who bought earlier and made hefty profits). The major price-driving mechanism in penny stocks is promotion campaigns where a a group of entities (traders, newsletters, magazines, mass emails...etc) recommend a certain penny stock. This would cause huge demand on the stock which would outpace supply thus causing a huge increase in the stock's price. Those who got in earlier would take this chance to unload their stocks and lock in their profits. Traders who bought too late into the buying frenzy, would end up holding a losing position.

        The above facts call upon new traders to educate themselves and concentrate on mastering self decipline.

        Having a group of penny stocks (20-30 penny stocks) is much better than contiually searching for new candidates on a daily basis. This is effective especially for new traders since it would keep them more focused and give them the chance to train thier brains and eyes into identifying potential penny stocks. Although this seems boring and might imply to you that you'll be missing opportunities, it is the only way to start your journey of mastering penny stocks.

        You could start now by writing down the penny stocks that you come accross while going through message boards, newsletters, a frind's tip...etc. and make a list out them. Watch your list on a daily basis and notice how the stock price is reacting. If a news release is issued, check to see it's effect on the stock price. Note all support and resistance levels and how prices react to them. Give your self some time to study their businesses as well as their financial statements (updated financial statements only). you'll learn a great deal if you are consistence on this.

        Probably, this is the most important advice I can give you here. Don't think that you'll be a master in a month or two, you'll most probably lose in the begining as the stock market is too tough on starters. Therefore, risking a little capital is a protection shield that every new trader should wear. If you have $1000, target penny stock that are trading in the half penny and less area and devide this $1000 among 4 stocks investing $200 into each one of them. The remaing $200 would be left for commiossion costs.

        Although I might look insane recommending putting your money into penny stocks that are trading below half a penny, You'll be astonished to know that these stocks very often go up 500% to 1000% and if you're lucky to be in one of them, you'd build a small wealth in no time. Please don't bet you're house on these stocks as a small fracxtion of them experience such a great event. You're mission is to try and idetify them. that is why I recommended such a small trading capital to start with since losing $100 or $150 or even the $200 is not going to ruin your life. In addition, spreading you're big capital among many penny stocks would increase you're odds of not going bankrupt.

        I have written two books on how to trade penny stocks the fun way. I reveal to you an amazing trading system that will grab potential penny stocks before your eyes on a daily basis. You'll be able to identify the hot trends in the markets and which stocks are screaming a buy. In addition, tens of other bullish stock patterns that have nevcer revealed before have been revealed. The second book will teach how to read financial statements with ease and in no time and will show how to pinpoint the stocks that are ready to explode in price in the very short term. To read more click here...

        It is very essential to know the fact that every chart pattern in penny stocks is unique and should be considered depending on the overlall context of the  price movement. For example, many traders regard breakouts of important support or resistance levels to be significant. However, we see allot of these breakouts turn out to be false breakouts. We often see that a breakout of a strong resistance level turn out to be a false breakout and prices bounce off this level to the downside after many traders had gone long.

        Each breakout potential situation should be looked at as a unique breakout. In otherwords, not all breakouts were created equal. A stock that has increased 100% or more in a very short period of time and has just broke a strong resistance level is most likely to head back down again as many traders who are in profitabke position would lequidate thgeir posituion and take part or all their profits. Many traders would welcome a profit gain of 50 to 100% and their natural decision is to sell. However, we often see stocks that go up 100% the first day and keep rising to hit 200% and more in the following days. This usually happens before a huge covering by many promoters be it in forumns, newsletters or mass emails sent to subscriber. Usually, the penny stock would have some positive news released earlier which would be the point that the promoters would depend on when recommending the penny stock.

        Taking this important fact into consideration, suggest that you have to know what you';re doing before you decide to buy or sell a stock. I might suggest that a stock is worth watching, however, you have to know where to get in and you have to monitor it on a daily basis to see if the price pattern had made a move that might change your openion as well as mine. As the time goes by, price patterns change and decisions change along with it. What might be a buy today, could be sell tomorrow.

        My philosophy here is that since the company has issued a very positive news release which caused its price to explode it has become more sensitive to future postive releases as many traders had become aware of it. The next positive (in case there is one) is most likely to be caught by traders who put the stock on their penny stocks to watch list. In otherwords, these traders are now focusing on a specific situation that might develope and they would be in a better position to capitalze on this situation if a positive event took place as compared to other fellow traders. This is exactly what happened few days later after the company had issued another positive release on a joint venture with the china-based company. The price exploded more than 100% in just one day and more than 200% in two months after many financial magazines and online financal services had covered the story. 

        You'd be astonished to know that you'd make money through watching penny stocks more than trading them off a forumn, newsletter, or a freind's tip. Allot of traders, especially the novice ones, don't even try to put a penny stock that they have come across under their watch list radar hence missing easy to catch positve price advances. Getting a tip from an outside source is easy, all you have to do is browse through penny stocks forumns, subscribe to various free/paid newsletter or simply navigate through tens of websites. However, watching a penny stock requires patience and monitoring and thus seems to be difficult for the majority. This fact should convice you to follow the second choice as you'd be among the minority of traders who are following it.