Penny Stocks Trading
This course gives you an introduction to the world of penny stocks, shows you how to pick which penny stocks to trade, and the right time to execute your trades.
See what other students are saying
Only 1% of Penny Stocks are actually worth trading and Investopedia Academy has partnered with Gordon Scott to show you how to find them. You'll learn how to identify profitable penny stocks and the right trading tactics needed to mitigate risk and maximize reward. In addition, penny stock trading has a low barrier to entry, which means anyone can be successful with the right strategy.
What will I learn?
- Distinguish the difference between penny stocks and regular stocks
- Analyze financial statements and sift through the news to decipher the true opportunity behind individual penny stocks
- Properly screen penny stocks using online tools
- Build a watchlist of timely potential trades based on your own research
- Develop a repeatable and profitable procedure for both reviewing penny stocks and identifying opportune trades
- Plan individual trade entries, executions, and exits
This course is designed for: Anyone, both beginners and experienced traders, who are interested in learning about the world of penny stocks and how to trade them successfully
Certificate of Enrollment
Receive an Investopedia Academy Certificate of Enrollment with this course
Investopedia Academy is an excellent resource from which I have learned a great deal of financial knowledge. I have recommended it to many people and will continue to recommend it to anyone wishing to better understand finance. The academy has such high quality educational courses and great customer service.
Yusef Lighari
Investopedia Academy student
Course Curriculum
Introduction to Penny Stocks
- Introduction and Characteristics of Penny Stocks
- Risk Associated with Penny Stocks
- Reasons for Large Gains and the OTC Markets
- Penny Stocks Trading Process
How to Find Trading Ideas for Penny Stocks
- Introduction and Screeners
- Review of Chharts and Checklists for Potential Catalysts
- Examples on Finding Potential Catalysts
- Additional Examples Using the Checklist for Potential Catalysts
How to Research Penny Stocks
- Introduction and Types of Financial Statements
- Warning Signs and Dilution
- Types of Stock Splits and Toxic Financing
- SEC Filings and Reports
- SEC Filings & Reports and Financial Review Checklist
- Tips to Avoid Scams
- Additional Examples for Financial Review Checklist
Planning Trade Entries for Penny Stocks
- Introduction and Resistance Breakouts
- Flag Pattern
- Trend-Change Gaps
- Cup and Handle Pattern
- Risk Management and Position Size Formulas
- Recording the Trade Plan
- Trade Tracking Spreadsheet
- Spotting Resistance Examples
Executing Trades in Penny Stocks
- Introduction and Mindset Involved with Trading Penny Stocks
- Buy-Limit and Stop-Buy Order
- Stop Loss and Trailing Stop Order
- Breakout Trades and Trend-Change Gap Trends
- Buy-Stop and Limit-Order Example Questions
Monitoring and Exiting Trades in Penny Stocks
- Introduction and Adjusting the Stop Loss
- Scaling In
- Completing the Trade
- Case Study Walkthroughs
Live Trading with Penny Stocks
- Live Trade on Finviz.com
- Live Trade on Tradingview.com
- Continued Live Trade on Tradingview.com
- Live Trade on Trading View.com
Getting Started in Penny Stocks
- Introduction and Choosing a Broker
- Allocate Conservatively
- Resources for Getting Started in Penny Stocks
About the Instructor
Gordon Scott
Gordon Scott
Certified Market Technician
Gordon Scott, CMT, is a published author and education consultant. He co-authored the book “Invest to Win” and has individually coached hundreds of traders and investors over the years. He formerly served as the Managing Director of the CMT® Program for the CMT Association. He currently advises Investopedia Academy’s trading and investing education, and publishes research and commentary on trading strategies and opportunities.