| There is no shortcut to wealth. You are about to find | | | | and business description of the company. Dig deeper |
| out the best way to find cheap penny stocks. Then | | | | into the company's SEC filings like their 8-K, 10-Q, and |
| you will realize why that first statement is relevant. | | | | other statements. If a company website is provided, |
| You may already know the fastest way to get a list | | | | go and take a look at it. Do this for each and every |
| of available penny stocks is through the finance | | | | one of the stocks that are in the results list. This |
| sections of any major website like Yahoo. The first | | | | may be a long and tedious process however if you |
| thing that you need to do there is set the screening | | | | do this with diligence, you will be rewarded when you |
| properties. Penny stocks are listed under companies | | | | find a cheap penny stock that also makes you a lot |
| that have market capitalization of about less than | | | | of profit. Look for companies that are reasonably |
| $250 million. Use this as the amount in the Maximum | | | | good businesses yet are trading their stocks at |
| Market Capitalization. This search will return a list of | | | | cheap prices. These companies usually don't get all |
| about 4,000 stocks or more. The next step is to | | | | the attention that they deserve but are the ones |
| show the Valuation of each stock on the results list. | | | | that have the most potential to rise to a much higher |
| This will generate the Price/Earnings, Price/Book, and | | | | price in a short period of time. |
| Price/Sales ratios for each of the available stocks. | | | | This is the best and safest way to find cheap penny |
| The next step will guarantee that you can find cheap | | | | stocks that are worth your investment. It may |
| penny stocks that have very low risk and very high | | | | sound like a burdensome or overwhelming task but if |
| rewards. If you are able to do this, then you will | | | | you just find that one great penny stock that can |
| definitely have an edge against most investors in the | | | | make you a lot of profit in a short time, then it's |
| market. | | | | definitely worth it. Investors who are diligent and |
| Start with the first stock on the results list. | | | | patient are often the ones who are able to grab the |
| Systematically, assess the financials, insider trading, | | | | greatest opportunities in the markets. |