Creating the best penny stocks watch list can make your small cap stocks or micro share investments more profitable. This article is designed to help you save time and money by making costly mistakes and how to properly compile a stocks list, ensuring your smart investments time after time. Compiling a list of penny stocks is a process that takes some practice. Here is some important information by our experts at Paradigm Capital Management that you will find useful if you are new to this arena. These stocks are usually:

• traded for less than 5 dollars a share and are normally small companies.
• usually have less liquidity, have small capitalization
• sold over the counter and not on a stock exchange.

Selling over the counter (OTC), means that the companies are usually less regulated. However even pink sheets stocks have minimal regulatory reporting requirements. In spite of that, the best penny stocks can be a great opportunity for you to even double your money if you are willing to take the additional risk and do the necessary investigation before investing.

Below are top tips by our experts at Paradigm Capital Management (http://www.paradigmcapital.com/) when Compiling Your Penny Stock Watch List

• You might want to know what a stock watch list is. If you decide that investing in is the right direction for you, you need to start a list of potential stocks.

• Take the opportunity to check out the best penny stocks by finding ones that meet your criteria and then start a stock watch list. Start investigating stocks that seem to have good potential.
• The best stocks should have reasonable liquidity. The average daily volume should be at least 100,000 shares as you need to have the opportunity to buy and sell your shares without a problem. For your research, look at the company's financial reports, their key data, charts, and news articles about the company.
• Do not pick a company for your investment emotionally, but use your analysis, investigation and research.
• Find investment opportunities where the price is increasing, the company is growing and earning more money, and you can find information on the company.
• List penny stocks that meet your criteria.
• Add additional comments from your research. Pay attention to stocks that are being aggressively promoted by online stock brokers.
• This stock watch list will be a useful tool for you in your determination of stocks to purchase in future.
• Keep investigating and add to your list. Keep your eyes open checking out news and reading material to find out more potential stocks. Do not list stocks that do not meet your criteria, but only add stocks that have real possibilities.
• You can make money on micro stocks if you take the time to check out the stocks carefully.
• Do not lower your standards or find yourself buying penny stocks without checking them out thoroughly.

Now that you know how to compile your penny stock watch list, and know what you need to look for, we encourage you to start your list and get going on this excellent opportunity. You can do it!