There are thousands of penny stocks trading on exchanges, ranging from crappy OTC stocks to small profitable businesses. As everyone knows, penny stocks are loved by day traders because of their wild volatile price swings. The volatility is exciting as it opens up new trading opportunities.
To find and analyze these opportunities there is a massive variety of helpful tools that can make or break a trader’s portfolio performance. In this articles we’ll cover the top stock screeners, charting tools and apps day traders can use to execute profitable trades.
A stock screener is a tool that traders can use to weed out the stocks they don’t want using filters – where they decide what stocks meet the criteria to end up on their watch list. For instance, investors typically filter out stocks that fall within a certain market capitalization, daily trade volume, dividend yield, 30-day return on investment (ROI), etc.
Stock screeners help inform many investors of their trading strategies, and a lot of stock trading programs and charting platforms have screeners included in their software. There are also a number of free stock screeners online – Yahoo Finance has one, CNBC offers a stock basic stock screener, NASDAQ, and a number of other non-paid screeners.
Trade Ideas is one of the most popular stand-alone stock screeners on the market. It’s mostly a screening tool, but it also has charting features – though that’s not what attracts its user base. This platform is known for its flexible and customizable scans that provide users with real-time trading opportunities. At $118 per month for a standard plan, it’s a hardcore stock scanner for serious traders.
Charting platforms for technical analysis
Penny stock traders use charting platforms to manage all their technical analysis and oftentimes use them as social media networks to share their trade ideas. With charting platforms, however, you can’t perform any actual trades – you can only do all the necessary research and analysis to execute profitable trades. That means that you’ll always need two platforms: one for technical analysis and a second one to complete the transactions.
This is both a charting platform and a stock screener – but you can’t execute trades using this system. Finviz is a website where users can quickly access the stocks, futures or forex pairs that they’re looking for, using its screener tool, market maps, comparative charts and analysis. There is both a free and a paid version, and they offer a paper trading feature, where new traders can play around and trade with fake money to see how they do.
Timothy Sykes is a famous penny stock expert who has been teaching trading methods for years. Sykes founded StocksToTrade.com a stock market scanning and research tool that also has social media features and paper trading. Like Finviz, this is basically an all-in-one trading platform minus the actual brokerage part, so you can’t execute trades.
Penny Stock Trading Apps
There are a ton of very valuable research tools and apps available on the internet, but those are pretty much useless if you can’t put them into action – and use the knowledge you gain from that technology to actually execute a trade. In order to buy and sell shares, you will need some sort of trading platform.
One of the most well-reviewed and highly regarded brokers, this is certainly an option for day traders who plan on executing high-volume trades. It includes all the flashy analytics you could want. Schwab now offers commission-free trades and no account minimum is required to open an account.
Another well-known broker, this one is more expensive at $6.95 per trade but offers better trade executions. If you make more than 30 transactions per quarter, that flat rate comes down to just $4.95. The minimum balance is just $500 to get started, too.
Known as a favorite among millennials for its sleek and simple user interface, Robinhood is one of the only free apps you can use to trade penny stocks. Robinhood doesn’t have as advanced screener/chart tools as some of its paid-subscription competitors, but for a free tool it has a lot to offer – now including cryptocurrency screening and buying (not selling yet).