Top Penny Stocks to Buy – How to Create a Winning List?

Top Penny Stocks to Buy

A lot of penny stock success stories begin with creating a winning list of diversified stocks. Your top penny stocks to buy list should be represented by stocks from various market sectors to help you diversify your risk. This way if one market sector is in decline, the rest are booming creating a nice hedge against catastrophic losses.

Investing in precious metals is one of the answers to how to find penny stocks helping you create a winning combination. Precious metals historically have been moving in the opposite direction with market trends naturally creating a safe haven for your investments. In the bulls market, when the rest of the market is booming, prices for gold mining top penny stocks are normally moving in a down spiral. When the bear’s market moves in and stock prices start coming down, your gold top penny stocks to buy list keeps growing due to rising prices of gold. This is an important fact to keep in mind when creating a recession proof portfolio.

While some investors focus on finding the absolutely top penny stocks to buy, others focus on picking through stocks to discard from the list. This is actually an excellent approach that will help you weed through hands down bad picks. Some of the absolute worst picks are penny stocks pink sheets, or stocks valued under $5 that do not trade on major stock exchanges or over the counter bulletin boards but rather between individuals via telecommunications. There are a lot of reasons why a company is not listed on major stock exchanges but here are the main ones:

  • the company has been de-listed for violations such as a missed deadline for SEC filings or bankruptcy
  • failure to meet general listing requirements

There are a lot of risks involved with buying through pink sheets, especially if you are a new investor. These companies are reluctant to disclose any financial information to the public, are very small and may be involved with questionable business practices.

Another consideration when you decide to buy penny stocks online is whether a company is paying dividends on their stocks. It is a huge added bonus since this provides a nice cash flow for investors, which could be reinvested for future gains. Penny stocks that pay dividends are a great way to build a winning stock portfolio that will bring dividends along with the gains.

Investing in new medical technologies is a great way to capitalize on potential gains in the future. If you stay up to date with medical news, you probably have heard about the emerging market of medical marijuana. These companies are deeply involved in growing, developing and producing new cannabis delivery systems to help manage symptoms in patients affected by serious medical conditions to relieve pain. Since many states as of today have already signed the laws to approve the use of medical cannabis, it is just a great time to invest into these top penny stocks to buy.

Also looking into companies that are working on testing and implementing drugs to fight some of the most pandemic diseases of the 21st century like cancer, diabetes, obesity and Alzheimer’s can also highlight some of the top penny stocks to buy for building a winning portfolio. In addition, learning which companies are developing vaccines against pandemic flu, pneumonia and respiratory viruses will once again help bring you more penny stocks to consider.

Green companies are definitely among the top penny stocks to buy today helping our planet develop less dependency on fossil fuels. These companies range from those working on reduced carbon emission engines, alternative renewable energy sources and companies involved in organic business practices.

And as a final note on which top penny stocks to buy is perhaps avoiding at all costs any hot tips from penny stock forums or any news scam publications sent to you via e-mails or texts. These all are almost 100% paid advertisements by companies struggling to pump up their stock prices with no solid financials or products behind them and should not be touched even with a 10 foot pole.