Penny Stock Breakouts - Paradigm Capital Management

1. Penny Stock Breakouts - Paradigm Capital Management Penny stock breakouts are cheap stocks which enjoy added attention from the traders or investors, because the prices of these stocks have a tendency to either shoot up or plummet in a matter of a few minutes without giving any hint or warning whatsoever. The behavior of these stocks is very much different from other high-valued stocks of the markets, values of which are more stagnant and are not prone to frequent moves due to their lesser influence on trading. Due to a number of reasons, these penny stock breakouts attract innumerable numbers of traders from around the world and a new type of technology that has been evolved particularly to identify the most lucrative penny stock has further given a fillip to this propensity. The advantage of investing in these low-value stocks is that an investor does not need to invest a huge amount of money to gain a sizeable profit out of it. When the market reopens after the weekend, the value of the then low-valued stock climbs up and remains at a respectable value all through the trading day, finally ending the day on a pretty high note. This gives the investor a recognizable amount of profit at the end of the day. The increase that is measured is actually of short-term and attracts appreciation as well as attention from the investors from all quarters due to the extremely low amount of investment involved therewith.

2. However, simply identifying penny stock breakouts will not help the investors. They will have to look for certain parameters or penny stock symbols to gauge whether the stock in question is capable of fetching any profit or not. Now the question is what an investor needs to look for in these stocks? There are the important things our experts at Paradigm Capital Management suggest you to watch out for: Recognizable increase in volume during the last one to three trading days Minor increase in the intraday closing prices over the previous highs Presence of purchase-indicators like the parabolic SAR (Stop and Reverse) trend that indicates the onset of a likely bullish trend Presence of moving averages of 20 to 50 that takes an upward trend to indicate about an imminent breakout Performance of the stock on the previous breakouts that have taken place over the last few years. This is helpful in gauging the expectations and areas of selling and making take-home profits. If there is any 'down the trend' broken line(s). Presence of 'down the trend' broken line(s) clearly indicates that newer bullish buyers are getting into the market thereby increasing the competition. Thus, penny stock breakouts play an extremely crucial role in making relatively large amount of profits without going for huge investment. These stocks are important and frankly speaking, are the penny stocks to watch for particularly by the beginners who are not willing to start with a huge amount of capital investment. For more information you can consult with the experts at Paradigm Capital Management - a trusted small cap investing company. The firm is focused on a single minded purpose: to ensure that the clients have the best information on

3. which to base intelligent financial decisions in pursuit of superior investment performance. For more details, visit here: http://www.paradigmcapital.com/