How much does a $2 stock have to rise to double? Now what about an $80 stock?
That isn’t a trick question—I just wanted to demonstrate the ever-present potential for penny stocks to quickly double in price, while it could take your ‘average’ stock much longer. This is actually the case most of the time.
That’s why many penny stocks are like winning lottery tickets. Here are 4 secrets to finding great ones…
Not ready to blindly accept that penny stocks double all the time? I understand, it’s hard to take anyone’s word for anything theses days. But check out a perfect example that just occurred within the past couple of weeks…
(From Stockcharts.com)
This is the chart for a penny stock called Transportadora de Gas Sur (TGS). As you can see, it went from $3 in very late February to just below $6 just a few days ago.
It practically doubled in just weeks!
That’s the power of penny stocks, but finding the ones that are ready to skyrocket like TGS did is the trick…
Here are 4 quick secrets to finding great penny stocks:
1. Look for the steady buildup
By that I mean that you don’t want to see volatile whips in price up and down over a recent period of time. You want the penny stock that has gradually climbed, and picked up the pace the further it’s risen.
2. The recent high
People often fall in love with stocks that used to be priced much higher, but that recently fell all the way down to penny stock levels because they think it’s now cheap. A secret to finding the lottery ticket penny stocks is finding those starting to hit new highs over the last 12 months and beyond if possible. This shows steady, sustainable growth.
3. Follow the company insiders
Let the company officers and directors lead the way. If those guys are willing to part with millions of dollars because they are confident (and perhaps know some privileged information) in their company’s stock, that’s a very good sign for a penny stock.
4. Liquidity
Buying volume is very important for penny stocks, especially those that are new stocks. A skyrocketing penny stock is usually accompanied and preceded by a spike in the buying volume of that stock.
Look for these secrets when searching for penny stocks to invest in. Or if you want it done for you, get Midas Premium, which sends top penny stocks straight to your inbox every month.
