Undoubtedly, penny stocks are among the most volatile investments in the market and can experience sudden shifts in value from one day to the next. At other times some stocks can often stay at basically the same price levels for days, even weeks, at a time until such time that either a downward or an upward movement becomes significant. So, how do you look through various penny stocks listings and determine which ones to pick?

Day to Day List

With that thought in mind, it is entirely possible to make a daily list of hot penny stocks to invest in. Of course, you want to focus on the stocks with the greatest likelihood of earning a profit when the time to unload comes. There’s no use in investing in a penny stocks that obviously will spiral downwards in value resulting in great loss of your money.

Also, take note that your daily penny stocks list will be an ever-changing one. It may be that the rankings will change but the players will be the same. It may be that a few will be dropped while others are added. Just learn to go with the flow and invest according to your educated guesses, never on your gut instinct alone.

Tips For The List

Unless you start thinking that such volatility makes it difficult to make a daily list of micro cap stocks, think again. Almost everything you need for quick, easy and convenient research, analysis and evaluation like the tools, techniques and technologies are right in your fingertips. These include but are not limited to the following:

• Use stock screeners available in many online sites like Yahoo! Finance and MSN Money. These screeners work by picking out the penny stocks that suit your predetermined criteria, which must include quantitative and qualitative factors. Although the standard stock screeners are sufficient for beginners, as you move up into the ranks, so to speak, you will want the features of an advanced stock screener.

For example, you can input the following conditions into the stock screener:

Trades in the Nasdaq SmallCap Market; market capitalization of $250 million; price-to-earnings ratio of 50 percent; price per share of more than $5.

The stock screener will then automatically pick out the stocks that meet your criteria. Our job then is to perform research on the recommended stocks to determine which ones have the highest likelihood of profits.

• Stay on top of the news with the industry newsletters, message boards and chat forums that often point the way to hot penny stocks. Beware, however, as there are many paid hacks on this site, too, and you want to avoid falling into a scam where these paid hacks pump up the value of the stocks and then dump them when these are in the hands of the investors – the old pump and dump scheme that new traders still become fools for today.

We always suggest that even when a penny stock comes highly recommended by the financial gurus, traders and investors must verify these claims. The one hour it takes to research, analyze and evaluate the penny stocks with the available tools, techniques and technologies will save plenty of money, headaches and heartaches.

So, you must make your own best penny stocks list through various listings but always make sure that it is supported by your own thorough analysis.