The goal of stock screening is. . .
• to eventually possess a stock list consisting of stocks you are intimately knowledgeable about and know to be stocks with the highest potential to explode in value soon.
• to select several of the highest potential stocks from that list and invest in them.
• to sell at the right time for a huge profit.
How to begin your screening of stocks
Yahoo Finance and other financial websites have basic stock screening software, all of which to basically screen for stocks to study and select for potential winners.
I really like Yahoo's stock screening program, and will use that most often.
You can direct the stock screener to locate stocks in a particular sector such as mining, biotech, insurance, auto parts, etc. Then you can enter the price range the stock should be trading.
The stock screener contains many other fields of choice such as dividends, market cap, sales revenue, dividend yield, sales revenue, profit margin, etc to help an investor better isolate or locate stocks that represents those types of stocks with a chance to be profitable.
My suggestion to you is to leave the other fields blank in the stock screener. At this point in your search for stocks you are only concerned with the sector of stocks and the price range the stock should be trading at. The rest should be up to you.
Why should the rest be up to you?
Because all the other info in the stock screening software does not accurately portray a winner or loser penny stock. You don't want to prejudge a stock as a loser or winner just because it doesn't have a certain market cap, trade volume, P/E ratio, sales, etc. That goes for all the other topics of choice. A potentially explosive stock is not defined by all those topic perimeters.
The greatest commodities a developmental penny stock company possesses is its intellectual property and patents to that property, and things like financial partners, VIP interested parties, management expertise, etc. Stock screening software cannot tell you the true value of a developmental company because it does not evaluate these most valuable fundamental assets of a developmental or exploration penny stock.
Will the stock screener list all the stocks in that sector of stocks meeting your criteria? I doubt it. I noticed that some of my high potential stocks were not in the list of stocks created by the Yahoo.com stock screener even though those stocks were in that sector and met the basic criteria I entered. I am not sure why this is.
I suggest you get a second or third opinion. Place the same directions into several stock screeners. Perhaps all the stocks with your criteria will then be found.
In addition to getting a second or third opinion, you may want to broaden your sector of stocks. For instance, instead of just biotech stocks, you may also screen for pharmaceutical stocks and medical equipment/diagnostic sectors.
Basic Search then Research
Once you complete your basic search of stocks from a stock screener software and placed the resulting stocks in a list, you must now study each individual stock using complete fundamental analysis and basic technical data to determine which stocks are genuine, and the true fundamental value and thus potential of such stocks. You then can determine, through that fundamental knowledge coupled with technical analysis, whether that high potential company is trading at a bargain.
As stated previously, and is worth repeating, possessing a genuine stock list created manually from complete fundamental data does not mean every stock on the list is ready to invest in and make a profit.
• Not every stock on your hot stock list is guaranteed to trend up or shoot up in price.
• Not every stock on the list will shoot up in value all at the same time.
What it does mean is that you now own a narrowed down list of stocks, which you could call hot stocks, out of thousands that exist that represent developmental or exploration companies in the sector of your choice, and at the price range you are interested in, that . . .
• are genuine
• have highly demanded novel products or services in development/exploration that appear to be a cut above the best of what already exists.
• have great potential for success
• have thrifty management - trim expenses and use investment money wisely to reach goals
• are managing their debt well
• have good connections with government, public and private agencies, and other companies that are very interested in the company and/or what it is doing.
• are not presently involved in professional marketeer manipulation in pump and dump schemes.
• are trading at a genuine bargain
• trading volume that is sub-normal for the market cap - which means not many traders are yet aware of the company. Beware that this could also mean there is something about the company that is not good which you may be unaware of. Your research should determine which is the case.
Things like this are essential when stock screening for high potential sleeper stocks to place on your personal hot stock list. You obviously must locate, plan, and then invest in those penny stocks with the greatest potential to . . .
• be advertised feverishly by marketeers and media in the near future
• gain greater investor interest
• gain greater public and private interest
• explode in value on the right news in the near future.
What has just been described is the Extraordinary way to search for, screen and research for penny stocks with high potential to explode in value in the near future on marketeer promotions.
Stock Screening successfully means you may include exceptional stocks on your list that are presently trading higher, or appear a little over priced from recent historic values.
Why you would want to include these? ...
While stock screening you may have reason to believe that some higher priced stocks could trade or cycle lower at some future point. Historical values on the technical charts coupled with fundamental data of the stock help determine this.
Factors exist that may cause a future dip in share prices in the near term. . .
• Be alert for a marketeer basher campaign and buy if and when shares dip to historic lows.
• No news updates for a month or more cause impatient traders to sell to free up money to trade other stocks.
• Dips in share prices as traders sell in anticipation of a soon to be published SEC report that has the potential to be negative.
• The economy and/or stock market is trending lower as a whole. Small exploration companies are especially affected by economic conditions because usually investment money dries up in bad times. And investment money is the life-blood of such companies since they do not usually make a profit.
Any good news could send the share prices higher again temporarily.
Patience is required when waiting for stock prices to cycle down on seemingly overpriced stocks.
Several weeks to months may go by before the stock dips in price again. But the stock may trade higher before it does. Obviously you may lose out on some good stock investments by waiting. Don't be upset if you lose out, because many more stocks on your list that are less risky.
Don't Jump the Gun - be Patient
If you buy too early, don't be dismayed when the stock keeps trading lower or begins trading lower after you thought it would trade higher.
More times than not, if you do your research right, a high potential stock will cycle lower. Consider all negative influences including economic conditions as you contemplate the next move in share prices of a high potential penny stock.
Give the stock time to re-balance and trend down to realistic sleeper status before investing.
And if that does not happen, then look for signs that the stock is a bargain at the new valuations, or just put the stock on your stand-by list for now. Do not take unnecessary risks with your money.
You have many other hot stocks on your list.
What would you do to double your money next year?
Haste makes Waste - Don't take shortcuts - Don't take risks
Don't take unnecessary risks when stock screening and investing. Your hard earned money is too precious to be gambling with. You have family that are depending on you.
Don't invest in stocks you are not sure about. Plenty more fish in the sea that are less risky to catch.
Professional Penny Stock Gambling means you do not take unnecessary risks with your money. Be sure you have a winning hand. Then you will have what it takes emotionally to double your money, or more, year after year.
The best way to make consistent profits, prevent losses, and take advantage of the risks others take, is to study the company behind the stock, and take into account all influences that directly or indirectly affect the stock and its share prices just as I have been showing you and will continue to show you.
This is not difficult once you have an outline to direct your research. I will provide this for you when you are ready to receive this knowledge.
Categorize the stocks you have studied for their potential.
Which of the stocks you studies are most likely trend up soon? Which have already trended up? Which are beginning to trend down and why? Which ones have the greatest potential for the future?
Invest in those stock(s) that you deeply feel are the right stocks, at the right time, for the right price - stocks you feel have the greatest potential to explode soon based on all the categories of fundamental and technical info I have shown you and will continue to show you later on. . .
Fundamental lists of data have been provided repeatedly on this site. This repeating of information in various ways will help your mind understand the best stock screening strategies for high potential stocks. Some of the lists I gave with more detail and some with less detail. Stock screening profitably can only be accomplished by studying such data for your stock of focus.
Don't lose heart, this is all far easier than it sounds once you know the mechanics of how to do it.
When you enter the Blue Button, you will learn short cuts to the process of screening stocks that will help you enormously in locating the best of the best - but not necessary to be successful.
Sleeper Stocks and Hot Fad Stocks
You may think that most other investors will already know about these super potential penny stocks before you do. Not so when investing in a sector of stocks that is NOT a hot FAD.
At the time of this writing, oil, gas stocks, alternate energy, and precious metals stocks are FAD stocks. Those stocks are so heated up right now that most of them are presently overpriced. Even the most risky stocks in those sectors are being eaten up by the investment pigs simply because they are in that fad sector.
When you are stock screening in a sector of stocks that is presently out of favor or appear not so interesting, and has plunged in value in the past few years, you have a super opportunity to pick up great deals with hardly any competition.
Keep in mind too that only a small percentage of stock investors keep themselves informed of high potential OTCBB penny stocks especially if that sector of stocks is not getting the attention that fad stocks do. The majority of professional investors shy away from OTC BB stocks for reasons I have already given UNTIL they are making the News.
Before high potential stocks gain significant investor interest and start exploding or trending up from all time historic lows, you will be invested in them. You will have the advantage because you are the extraordinary investor.
Watch and Wait and Re-Evaluate, then Act!
Stock screening for penny stocks must involve a complete fundamental analysis of each company underlying a stock - and knowing what to look for and how to use the information. By doing this, you effectively choose stocks to place on your hot stock list to watch and evaluate.
Once such knowledge is gained, you will then have what you need to act on the stock of choice with confidence. A fundamentally created stock list represents genuine companies that are more likely to trend up under the right conditions at the time the list was made. This is the kind of stock list you can have confidence in.
Mining the stock list for gold!
Stock screening must involve the continuous re-evaluation of stocks on your list to make sure you still have those stocks to follow that have the highest potential for explosive trends.
This re-evaluation or monitoring is not difficult or time-consuming because you already know the stock. Even so, do not be quick to purge your list of stocks that seem to have lost potential. Many penny stocks go through cycles of ups and down. As well, good news can come anytime that could surprisingly change things. And surprises happen often with penny stocks.
For those stocks worth watching on your list, you must still find a time frame, or the "right conditions," should they really ever exist, to buy and to sell for the huge profits they are meant to give you.
It's a matter of "watch and wait and re-evaluate" for the conditions to present themselves fully through fundamental and technical data.
Only then will your mind have enough information to accurately act on that data for low risk high profit trades. This is not a difficult as it may sound and is quite worth the effort!
Stock lists are time sensitive.
While a good stock list saves months or years of time sifting through thousands of stocks, stock screening is still a continuous and necessary activity.
Carefully screen each stock on your list - keep it updated. Your own stock list can be your worst enemy if it is flawed and outdated. This is not nearly as difficult or time consuming to do as working 40 hours a week at a job. Updating your list of stocks may only take 1 hour per day or less.
Reminder warning concerning penny stock lists
When it comes to time savings, penny stock lists can be extremely helpful when stock screening for high potentials, but only if the stock list is a high grade fundamentally produced updated list.
Some helpful hints in finding a good stock list
The likely-hood of a high cost penny stock list being a scam is not as likely as a cheap or free penny stock list because. . .
• Pump-n-dump scams want to make their marketing efforts readily accessible and quickly acted upon by greedy investment pigs. To accomplish this mission, marketeers will provide free stock lists to their client, or will desire to sell them cheap as a lure to bate you.
• Selling their stock lists at high prices is counterproductive to their purpose: Marketeers make far more money causing investors to buy shares of the stock they are promoting. The more suckers they can convince to invest their life blood savings the better.
Genuine penny stock lists usually do not sell very well and are highly under rated by most investors probably because:
1. The scam lists have given even genuine stock lists a bad reputation.
2. Technical trading software has taken over the demand that should belong to fundamentally created stock lists..
2. Free or cheap stock screening software gives better results than most hot stock lists sold on the internet.
The company that does create genuine fundamentally a created stock list that is updated regularly will in time become well known. Such a company will make a name for itself in the investment community in time and could make good money selling such lists. Such a company will also help investors make good money on their investments by such lists.
As for the scam hot stocks list companies: I can imagine that a company could be sued if the list can be proven to not meet the specifications as advertised, thus hindering reputable companies from offering their stock lists for sale to the public.
In summary, Stock screening software is very helpful in creating a basic list of stocks to research further by the Extraordinary Investor.
In addition, purchasing a good reliable stock list is a most powerful and helpful tool for stock screening that can save the extraordinary investor much time searching for potentially good stocks.
Making money selling penny stock lists is dismal compared to other avenues of income in the short term. In the long term, I can imagine a company selling genuine stock lists could do well for themselves - creating a niche market in a land dominated by scam stock lists.
Stock screening the correct way will definitely prepare your mind with accurate knowledge about penny stocks.
The more you study stocks, the more your mind will adapt and grow to understand what to look for, and how and when to correctly invest in the stocks on a genuine stock list. The risks are manageable and can be used to your advantage - the rewards are great!
You have now completed this section on Stock Screening Profitably.
You will now begin a new topic on the Stock Market as it relates to penny stocks and investing in penny stocks.
This topic and its sub-topics will provide essential information about the financial markets for your mind to be aware of and alert to. You will be alerted to situations that would otherwise create risk for you when trading penny stocks. This is important reading.
Please do not skip this section or any section even if you think you know all about the stock market.
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