As most penny stock traders already know, penny stocks are a finicky beast as they are particularly susceptible to the “mood” of the market. Because of this when a stock hits the front page of a website or is showing success and being talked about in stock forums, the stock will generally continue in that direction for awhile. People tend to chase fads and since the penny stock will move on less volume of shares it takes fewer people to chase that particular fad for the what is working lately situation to come true.

There are plenty of places to find out what is working right now. This is because everyone likes to read about the win. You can look at the biggest gainers or biggest volume on any major stock market site. You can also read in the forums which trading strategies are showing success. Sometimes it’s the scalpers, sometimes it’s the Elliot wave theory people, but choose a major stock market forum and read who is winning with penny stocks.

I would follow 5 to 10 well published penny stock trading strategies and track their returns every week. Then I would put more weight on the strategy that is working best right now. It doesn’t mean I would only trade that strategy, but perhaps bet bigger on that strategy until a new one tops the list. Just like having diversified technical indicators, this strategy works best if you choose strategies that aren’t well correlated with each other. Perhaps most traded, biggest gain, most talked about on 20 or so financial sites, highest option interest, biggest change in short %, etc. Just use your imagination and keep tweaking this strategy. Every time there is a new hot strategy from penny stock brokers or advisors, throw it on the list to watch. Odds are it will be hot for awhile because everyone is trying it.  Just be sure to not fall in love with any one strategy however as what once worked seamlessly 6 months ago may now lead you to ruins.