It is common knowledge that the first step when investing is to do through research into every possible investment. When considering investing in a home, for example, you would never dream of buying “sight-unseen”, or purchasing a new car without looking under the hood.
This is exactly the same when it comes to investing in the equities markets. You must carefully research each and every potential stock in order to maximize your chances for success. No matter if you are investing in index funds, blue chip companies, or penny stocks, your first step when choosing potential investments is to figure out your criteria for investing, and plug that criteria into a stock screener.
Even if your trading plan calls for investing in penny stocks, and entering and exiting your positions quickly, a stock screener can be an invaluable tool in narrowing down the field of potential stocks.
There are many stock screeners out there to choose from but I have to say that my favorite penny stock screener is the one from google. Google offers an excellent, easy to use screener that is both comprehensive – allowing you to customize your search with a variety of search criteria – and free.
The Best Penny Stock Screener From Google
The google stock screener is free, easy to use and powerful. If you go to the stock screener, you will be presented with the a screen like the one pictured below:
To setup the stock screener to find penny stocks you need to first add a price variable. This can be done easily by clicking on the “Add criteria” link.
You will then be presented with a drop down menu. If you click on “price”, then select “Last Price”, then click the “add criteria” button.
You should then see a “Last price” box in the list of options as shown below:
How To Use A Penny Stock Screener
You can see there are now two boxes for the “Last price”. The first box is the minimum price and the second box is the maximum price.
You will then need to change the second box to the maximum stock price you would like to look at. Commonly stocks priced under $5 are considered to be penny stocks.
To view penny stocks that meet this criteria simply enter “5” (without the quotes) in the second box. Alternatively you can use the slider to adjust the price. It should look like this:
One you have setup the google penny stock screener you can then select many different variables to help you find your penny stocks.
Some of these variables include:
- 52 Week High and Low
- Market Cap
- Price to Earnings Ratio (P/E Ratio)
- Dividend per share
- Gross Margin
- Operating Margin
- Price to Book
- Price to Sales
These are just some of the most popular variables, there are many many more.
Try Out Different Stock Screeners To Find The One That Best Suits You
Whilst google is definitely my favorite penny stock screener, there are many good free screeners including Yahoo and Marketwatch. It is important to use the penny stock screener that best suits your needs. Look for one that offers the criteria that you need to screen for the investments you require, and that is also the easiest for you to use.
If you would like to learn more about investing in penny stocks, allow me to invite you to visit my buy penny stocks page. This article will guide you through the basics of trading penny stocks as well as how to get started. If you want to learn more about penny stock brokers, there is some information on that too.