To begin, I read OTC-BB press releases. There can be upwards of 300 press releases in a single day. I scan the headlines and if something intrigues me I read further. Allstocks.com and Stockhouse.com are free sources that provide OTC-BB news.
From the ones I save I go to Yahoo for Quotes, News, Charts, Profiles, Insider Trading and links to SEC documents.
Read the SEC documents (very important); for Canadian Companies check SEDAR. Look for red flags (bridge loans, convertible debentures, a zillion shares outstanding, stock dilution on a regular basis, etc.)
Next I would go to Silicon Investor or Raging Bull and see what people are saying about the stock. They have message boards for practically every stock traded and if not, you can become a member and start your own thread.
A visit to the company website would be a logical next step. If I liked what I saw there I'd then fill out a simple research form and track the stock on a daily basis. I would also call the transfer agent to verify shares outstanding and shares in the public float.
To buy and sell penny stocks one needs a penny stock-friendly broker. Not all brokers will allow trading of penny stocks, or if they do, some charge exorbitant fees. A partial list of Penny Stock Brokers include: Ameritrade, E-Trade, myTrack and Scottrade.
Software available for tracking your portfolio are many. All the major portals like Yahoo and MSN offer portfolio options. See also quicken.com or fool.com. I like MyTrack, and Medved's Quote Tracker. Both are software programs that run directly on your desktop. My Track offers OTCBB Level II for about 30/month.
Charts are a good way to calculate the timeliness of entries and exits. BigCharts.com and Quote.com offer interactive charting from minutes to years.
Researching stocks is an unending quest. Go to one of the big search sites like Google.com, enter a company name and follow as many links as you can. You'll be amazed at what's out there.
Best of Luck.
CAPTNEMOS
Posted by bbygyrl123 on :
I can't say thank you enough!!! This is exactly what I have been looking for! Just a brief guide to get started! If you have any other knowledge to impart, I am all ears!!!