Today I’m gonna address one of the thorniest topics in trading — penny stock alerts.
This is a hard subject to talk about. It’s got all of the best and worst that trading communities have to offer.
Let me give you the good news first.
The best penny stock alerts can show you the way that experienced traders think. When you’re alerted near the point a stock is taking off, you can see trades play out in real time.
Ideally, you’re watching the market too … maybe you even have the alerted stock on your watchlist. In this ideal world, you’ve done your homework and can see that something’s happening. A good penny stock alert can be the reassurance you need to pull the trigger on a smart trade.
In this scenario, you’re putting in the work. You’re not hoping to piggyback off anyone’s trade. You’re using these alerts for the noble goal of education, not to chase trades.
Because when you use alerts to chase trades, that’s when they can hurt you.
You’re always gonna be at a disadvantage with penny stock alerts if you’re trying to use them as a cheat sheet for trading. Maybe they’ll even deliver a gain — but if you haven’t worked on your trading plan, what’s your exit?
And alerts can put you into a position after whoever gave it. Potentially alongside thousands of other traders. That can pump volume into the market at the same time smart traders are taking small gains and getting out.
That’s why I’m writing this article. I want to show you how to use penny stock alerts — for good, not to destroy your account!
Table of Contents
- 1 What Are Penny Stock Alerts?
- 2 Importance of a Good Penny Stock News Alert
- 3 How Do I Set Up a Penny Stock Price Alert?
- 4 Who Has the Best Penny Stock Alerts?
- 5 How Do You Find Breaking News on Penny Stocks?
- 6 Daily Penny Stock Alerts: How to Use Them in Your Trading Strategy
- 7 Should You Use Penny Stocks Alerts in Your Trading Strategy?
- 8 Frequently Asked Questions About Penny Stock Alerts
- 9 Conclusion: Should You Start Using Penny Stock Alerts?
- 10 One Platform. One System. Every Tool
What Are Penny Stock Alerts?
At their core, penny stock alerts are messages that tell you when to trade a stock.
They usually come from a service. In general, if this service is any good, they’ll make you pay for it.
There are a lot of ways penny stock alerts can get to you. They can give you the scoop by text or email. A lot of people use chat rooms for alerts.
Again, I’ve gotta sound the alarm here. Most of the chat rooms out there are bad news. Chat room pumps used to be such a common thing that I built a trading strategy around them. Now they’ve gotten so out of control that I just stay away.
And FOMO, as my SteadyTrade podcast co-host Stephen knows, can be a killer.
Importance of a Good Penny Stock News Alert
This is the kind of thing I like using penny stock alerts for. A good news alert can potentially give you an edge in trading.
It shouldn’t be someone telling you to buy a stock. Instead, it should point out a news catalyst that might make the stock move.
A good news alert might give you entries and exits … but it will leave the work to you to figure out whether a trade fits your setups.
How Do I Set Up a Penny Stock Price Alert?
I see how you could get confused, but penny stock price alerts are a different can of worms.
Most of the time, price alerts are things you set yourself. On a trading platform like my favorite, StocksToTrade, it’s easy. You can enter pretty much any criteria, and StocksToTrade will ping you when it goes off.
Price alerts are just the beginning — you can alert for a number of trades, volume, and more! Even better, StocksToTrade comes with 40+ powerful, built-in screeners. This is how you can catch all the stocks that work for your criteria.
Although penny stock alerts can help your trading, I think this is the smart way to approach alerts. You set the conditions that work for your trading setups. Then when something matches, you can decide whether to pull the trigger.
Who Has the Best Penny Stock Alerts?
Well, this is the million-dollar question.
You already know I think StocksToTrade has the best technology of any platform. Why wouldn’t that also benefit our alerts?
Oracle Alerts is our artificial intelligence and big data algorithm. Every day it scans all the stocks out there for the best picks of the day. With one click it’ll give you the top 15 active and volatile stocks of the day. It also indicates entries and exits.
That’s not all you get with Oracle, though. Every morning, our editorial team breaks down this watchlist. They pick out one stock and drop you an Oracle Daily Direction Alert email before 10 a.m. Eastern.
That’s awesome for a less active trader. Heck, I’ve picked up moves from Oracle.
We’ve also got a penny stock alert service that caters to more active traders. Small Cap Rockets is another StocksToTrade add-on built around penny stock breakout alerts.
It’s not a cheat sheet, but it’ll give you the kind of advantage that everyday traders like us need to thrive!
(*Whether you use an algorithm or not, there are never guarantees in the market. For best results, use algorithmic trading as part of your overall strategy — don’t rely on it entirely. Always do your due diligence. Remember that all trading is risky.)
How Do You Find Breaking News on Penny Stocks?
I’m about to tell you about what I think is StocksToTrade’s best penny stock alert tool. It’s called Breaking News Chat. It’s a different kind of chat room, which I believe can actually help its members get an edge.
Remember I talked about how bad chat rooms can be? Well, I’m not backing down from that.
Best case, they’re usually a blind-leading-the blind situation. These traders aren’t watching the market and looking for patterns. They’re hyping each other into trades … which almost never works.
If there’s a lead trader on there, you should question their motivations. Especially if they recommend you blindly follow their trades. These places can be cesspools of insider trading. And guess what? They’re not there to benefit you.
We built the Breaking News Chat into StocksToTrade because of all the scammers out there. We’ve trusted our chat to two market pros. They’re delivering a curated stream of news, blazing fast.
Our guys regularly beat news sources like Yahoo and Google News to the punch. This gives our traders a key potential edge.
That’s the kind of thing you should be looking to penny stock alerts for. Not some golden ticket to get-rich-quick land.
And these guys don’t just look for OTC penny stocks. They cover NYSE and NASDAQ penny stock alerts too. They’ve even beaten media powerhouses in reporting blue-chip penny stock alerts.
Back in May, Uber (NYSE: UBER) approached GrubHub (NYSE: GRUB) with a takeover offer. Our guys beat CNBC to the story by 15 minutes!
My buddy and O.G. trading mentor Tim Sykes loves it so much, he made a video about it:
(**Results not typical or guaranteed. Past performance is not indicative of future returns. Financial investing is inherently risky.)
Daily Penny Stock Alerts: How to Use Them in Your Trading Strategy
Daily penny stock alerts can be valuable if you know how to use them. The important thing is what it says in the subject line. They have to be part of your trading strategy.
Not every penny stock alert will pan out in a trade. The thing that they can do is show you stocks with potential — trades where the reward outweighs the risk.
Tools like StocksToTrade’s Oracle Alerts will take you as far as anyone who’s not you can. But you’ve gotta get the rest of the way there yourself.
Our Breaking News Chat will tell you why a stock is moving. It’s up to you to take that edge and fit it into a solid trading plan.
Should You Use Penny Stocks Alerts in Your Trading Strategy?
If you’re a new trader, penny stock alerts can help you focus on which stocks to target. Even if you’re more experienced, a little mentorship will help.
But I can’t recommend solely relying on them. And you have to be really selective in whose alerts you listen to.
There are a lot of people out there who want to take your money and give you nothing in return. And if they’re giving out their penny stock alerts for free? Well — you’d better keep your eyes wide open.
The biggest danger in the penny stock world is sleazy promoters. These guys will try anything to get you to buy their stock.
You better believe they’ll recommend it through a free alert.
And even if you’ve found a quality alert service, you can’t let it push you into trades. Alerts can take trading into the realm of gambling real quick!
Frequently Asked Questions About Penny Stock Alerts
How Do You Spot a Good Penny Stock to Trade?
This isn’t what you want penny stock alerts for. Use a good screener like StocksToTrade to find potential trades that fit your criteria. Alerts can help you identify penny stocks with potential when you know what you’re looking for.
Where Can I Find a List of Penny Stocks News?
For basic news scanners, I’ll again recommend StocksToTrade. For advanced tools, look at our Breaking News Chat add-on. It’ll alert you to news items that have the potential to move stocks.
What Are Penny Stock Text Alerts?
Alerts services might offer text messages, emails, even instant messages. It’s all about what works for your trading style and lifestyle.
What Is the Best Way to Start Trading Penny Stocks?
The first step is to study, then study some more. Signing up for an alerts service can help you learn the process of finding stocks with trading potential. But remember to never blindly follow alerts — that’s just not smart trading.
Conclusion: Should You Start Using Penny Stock Alerts?
If this is the first time you’re hearing of penny stock alerts, I know how this must sound. I’ve just offered you a silver bullet, and I’m saying don’t use it!
I hate being that guy. And I’m really not. Ask my kids. I let them take on most things that they want — as long as they put thought in beforehand.
That’s what I’m gonna tell you, too. Penny stock alerts can be an awesome tool … or they can be a quick way to sink your account.
I want you to succeed as a trader. Whether you use an alerts service or not, the preparation is the same. You have to study really hard and learn the patterns and setups that work for you.
When you do that, you can use them as a force for good. Which, in stock market terms, can mean a path toward trading consistency.
What do you think about penny stock alerts? Have you had good experiences with them, or bad? Let me know in the comments. I love hearing from my readers!