How I Find the BEST Penny Stocks to Trade

How do I find the best penny stocks? A lot of people ask me this when they see my videos. SUBSCRIBE: to get INSTANT alerts when I post a new video outlining my penny stock trading techniques.*

They see that maybe I’m buying a stock after it’s already run 20, 50, 100%. And they say, Tim, that’s all well and good, but how do you find it before it spikes? How do you find the best penny stocks before anybody else?

The answer is, I don’t want to. I don’t want to be the only person in a penny stock, thinking that this is some undiscovered treasure. The odds of you finding the next great penny stock are so low. I would rather you focus on a strategy that is more high-odds, more high-probability. And that means understanding that you don’t have to be first in a penny stock. In fact, first is the worst because many times, you will think that you have an amazing stock.

This is how my top millionaire students and I have become millionaires in a few years. Not by holding and hoping. Not by betting on Lotto pick-type picks. That’s what people think. People are like, oh, let me buy 10 penny stocks, maybe one of them will hit.*

It’s not that I’m better than you, it’s just that I’m more experienced and I know what to focus on. You might be right one time out of 10, or two times out of 10, and try to make 100 or 200% on your money. But I’m right 60 or 70% of the time, for those of you who don’t like math, that’s six or seven times out of 10. And I make 10, 20, sometimes 30 or 40% on my money. I go for singles instead of going for home runs.*

Every single penny stock, every single low price stock, is on the verge of bankruptcy. Understand that. They’re on the verge of collapse. That’s why they’re trading for pennies or a few dollars per share, okay? You’re trying to invest; you’re trying to apply long-term investing into a niche that is not made for long-term investing unless you want to be a long-term short-seller.

And I do have several students who have made six figures just long-term short-selling pump and dumps. Betting on lower prices. Because the odds are with them. Most of these pump and dumps will crash and burn within a few weeks, if not a few months. All of the penny stock pump and dumps crash and burn within a few years. It’s just a question, do you have enough patience? Are there enough shares to short while it’s going down that much? But do not think for one second that you should be holding and hoping long, betting on higher prices, when the majority of penny stocks go down.*

To be in the sweet spot where there are good odds of profiting, you can buy penny stocks, but you have to be quick. You have to be like a professional. This is what I always teach, trade like a professional. You want to go in, collect your 10, maybe 20, sometimes 30% gains. Buying an earnings winner or a contract winner or a new billionaire play or a technical breakout or maybe even riding a pump for a few days, it’s risky, but there are many different patterns where you can ride the momentum. And it’s high odds, probability, in your favor. That is the best penny stock. Don’t make the classic mistake of taking a low odds of success strategy and thinking that you’re going to make money. Because you just won’t.

* Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here:

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38 thoughts on “How I Find the BEST Penny Stocks to Trade”

  1. I learned what you are saying from experience unfortunately, I had to lose 2k $ to realize that long term investment in penny stocks is extremely risky and can take a toll emotionally, now my strategy is short term ( day trade , swing trade) selected penny stocks with fewer shares, instead of putting all my limited capital into one.

  2. oh I made a mistake, bought BNGO and SENS both +30% and still growing. I think most important is to understand the product and the market. BNGO +SENS were both Penny stocks, but they needed cash to go on with their innovative products, now they start to grow and the acceptance of the market is coming. If companies don't have innovative products I would not even invest.

  3. Its actually not hard, you buy in november and hold to May – IF – the company performed before – and – The technicals + volume proof underlying bullishness.

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