So you have a considerable amount of money lying around and you want to know how to find and buy penny stocks under $5. You must have heard that many traders go wild over these small cap stocks that you want to invest in them, too. Stocks that cost below $5 appeal to many people preparing themselves for the giant stock market, as well as those don’t have enough capital to invest in the big market.

Although micro cap stocks are generally risky because you buy them from small companies, your investment can double or skyrocket very quickly if the companies you buy stocks from make it big in a short period of time. Your investment can even grow by 100% within a week, allowing you to enjoy quick gains without needing to keep your capital invested for years at a time.

If you want to know how to find and buy penny stocks below $5, then it’s best to use a fundamental stock screener. You don’t have to wander aimlessly from stock to stock or from company to company without even the slightest idea as to which company is a suitable pick. With the use of an automated screening service, you will always know which company to go for. The stock screener filters out companies that are not in the list of major exchanges. It also filters stocks based on their earnings or revenue, growth, book or intrinsic value, cash flows and dividends. The screener basically allows you to search for stocks as you enter the maximum price of stocks. This significantly simplifies your search if you need to know how to find and buy penny stocks under $5. Just enter $5 in your search as the maximum price, and the screener will return a list of stocks that trade under that amount.

Finding and buying penny stocks below $5  can also become easier if you visit the Over The Counter Bulletin Board (OTCBB) website. This website of stock exchange has long lists of stocks that cost only a few pennies. You may download the listings from the website and see for yourself if you would want to invest in any of the listed stocks.

You may also look into the Over The Counter (OTC) exchange website of pink sheets that has lists of various penny stocks. You can download the listings and classify the stocks yourself. You’ll also see a number of advertisements for hot penny stocks throughout your effort of finding and buying  penny stocks below $5, but it can be really difficult to distinguish the legitimate companies from fraudulent ones. Finding reputable websites that provide trading tips and guides is also an effective way of finding good penny stock picks. You can sign up for  their newsletters in order to get regular information about trading.

Diligence is a great virtue that comes in handy when you finding and buying penny stocks, so take the time to research.

Where To Get Legit Penny Stock Recommendations?

I’m currently recommending a number of companies that trade on the OTCBB. If you want to hear about my recommendations, then sign up for my newsletter called “Paul’s Penny Stock Insider” by clicking here.