Free Daily List of Top Penny Stocks to Buy – Good Penny Stocks

Buying Penny Stock Using our Daily Suggestions – Anatomy of Today’s Trade and the Importance of Having a Good Online Broker.

Posted on February 24, 2009 by Penny Stocks Picker

This top penny stocks blog article re-cap describes how today’s completed trade was accomplished using SureFirePennyStocks.com list of top penny stock suggestion for Tuesday 2/24/09.  Additionally I’ll describe why it’s important that you have a good online broker when you want to buy penny stock.

ANATOMY OF THE TRADE (INCL):

1. Before the market opened I entered all of Tuesdays (2/24/09) suggestions (CMLT, INCL, INBG, IDOI, & IGTP) into my broker account Level 1 streaming quote watchlist and also into Level 2 streaming quote platforms with access to news.  I also had Investors Hub board up and Yahoo Finance (looking for overall market direction). Basically doing my homework.
2. When market opened I watched for any news on all the picks and current real Time and Sales. In order to narrow down the list of suggestions I look for buying volume (momentum).  Please refer to our Introduction Article in the category archives for details on why you need to narrow down the top penny stock suggestions.
3. Almost immediately it was obvious that one of the top penny stocks was INCL because of a morning news release and momentum (lots of buys coming in at the ask price). The rest of the suggestions looked pretty lame at that moment, so I focused my attention on INCL.
4. THE GREEN LIGHT
   • News release: Didn’t even read it.
   • Strong buying volume at the ask price of .0003
   • Chart looked good.
   • Chatter was positive (refer to my Investors Hub Article in the education section of the category archives).
   • Level 2 was set.  The best bid (what the market makers (MM) is willing to pay for your shares/what you can sell at) went from .0001 to .0002.  The # of MMs left at the ask (the price the MM is willing to sell shares/what you pay) price of .0003 was down to one (NITE) and buying was coming in strong.  If you only have Level I access that’s ok, it just shows you the best market maker (MM) bid/ask price, it does not show you all the MMs ready to buy and sell and their associated bid/ask prices.  You can trade with level 1 but you take on a little more risk because you only are getting half the story.  Getting Level 2 is like Lasik eye surgery.
5. THE TRADE
   At about 7:42MT (12 min after open) the buy signal was confirmed and we placed our orders at the ask price of .0003.  My associates order filled and not soon after, the bid and ask price went to .0003/.0004.  Within the next 40min or so the bid and ask was at .0004/.0005 and the momentum began to slow and my associate closed his position at .0004 for a 33% profit.  It’s very important that you take your profits when you have them.

THE IMPORTANCE OF HAVING A GOOD ONLINE BROKER:

I have established a working trend for all my current penny stock picks that I will continue to use until that trend breaks down and doesn’t provide me with any more top penny stocks.  One of the criteria that I use is to scan for breakout volume (# of shares traded on a day has really exceeded the average daily trading volume). Now my current broker (Scottrade) tends to restrict on-line purchasing of stocks that have unusual trading volume (pretty much most of my picks).  They tell me that they believe that these stocks could be involved in a pump and dump and thus are trying to protect me.  Ok, that’s annoying but I go along and call the order in as they requested for INCL and my other green light top penny stock. Well, now this time they tell me they don’t deal in this security (INCL) because the associated trading fees are too high (this has happened to me before with Scottrade).  I tell them no problem, I’ll pay the fees.  They tell me they cannot place the order.  I get off the phone and not minutes later the ask price begins to rise.  I just did all my homework and got the green light but I was unable to profit because my on-line broker is trying to protect me (yeah right).  They just cost me a winning trade.

My associate currently uses TD AMERITRADE and has never had any problems placing on-line trades in any of our picks.  So, with that I’m opening a TD AMERITRADE account in addition to my Scottrade account.  It’s probably a good idea to have more than one on-line broker just in case something happens. I’m also thinking about opening an account with a direct access broker for future penny stock trading. 

Please feel free to post a comment about the brokers you use or any other information you feel would help benefit.