Penny Stock Screener: How to Find the Best Penny Stocks

A penny stock screener is your most powerful tool for finding high-potential trading opportunities in the vast universe of low-priced stocks. With thousands of stocks trading under $5, manually reviewing each one is impossible. Stock screeners filter this overwhelming universe down to a manageable list of candidates matching your specific criteria, saving you hours of work while improving your results.

This comprehensive guide covers everything you need to know about penny stock screening: the best free and paid screeners, essential filtering criteria, proven screening strategies for different trading styles, and how to build and maintain effective watchlists. Whether you are a day trader looking for momentum plays or a value investor seeking undervalued gems, mastering stock screening is your path to consistent profitability.

Why You Need a Penny Stock Screener

The stock market contains over 10,000 publicly traded companies, with roughly 4,000 trading under $5 per share. Without a systematic screening process, you are either missing opportunities or wasting time on worthless stocks. Stock screeners solve this problem by:

• Filtering thousands of stocks in seconds based on your criteria
• Finding unusual volume and price movement in real-time
• Identifying technical setups matching proven strategies
• Discovering fundamental opportunities before they become obvious
• Monitoring multiple criteria simultaneously
• Alerting you when new opportunities appear
• Eliminating emotional and biased stock selection
• Providing consistent, repeatable processes

Best Free Penny Stock Screeners

You do not need to spend money to find quality screening tools. These free screeners provide professional-grade capabilities:

1. Finviz (finviz.com) - Best Overall Free Screener

Finviz is the most popular free stock screener for good reason. It offers 60+ filters, visual heat maps, and an intuitive interface perfect for penny stock screening.

Key Features:

• Price filters: Set exact range ($0.50-$5.00)
• Volume filters: Minimum daily and relative volume
• Technical indicators: RSI, MACD, moving averages
• Fundamental data: Market cap, revenue, debt ratios
• Pattern recognition: Flags, channels, breakouts
• Custom views: Chart, Basic, Overview, Valuation
• Heatmaps: Visualize sector performance
• Portfolio tracking: Monitor your holdings

How to Use for Penny Stocks:

• Go to Stock Screener tab
• Under Descriptive, set Price: Under $5
• Set Average Volume: Over 500K
• Choose Exchange: NASDAQ or NYSE
• Add technical filters based on strategy
• Sort by Performance (Day) to find momentum
• Export results to spreadsheet

Limitations: Data delayed 15 minutes, no real-time alerts, limited pre-market data.

2. Yahoo Finance Stock Screener - Best for Beginners

Yahoo Finance offers a straightforward screener perfect for traders new to screening. While less powerful than Finviz, its simplicity helps beginners avoid overwhelm.

Strengths:

• Simple, clean interface
• Pre-built screens (Small Cap Gainers, etc)
• Good fundamental filters
• Integrates with Yahoo Finance news
• Mobile-friendly
• Real-time quotes on results page
• Completely free, no registration

Best For: New traders learning screening basics, fundamental screening, quick daily scans.

3. TradingView Stock Screener - Best for Technical Analysis

TradingView combines powerful screening with the best charting platform available. Perfect for technical traders who want seamless integration between screening and chart analysis.

Technical Screening Features:

• Advanced technical indicators and oscillators
• Multiple timeframe analysis
• Custom indicator screening
• Pattern recognition filters
• Volume profile analysis
• Candlestick pattern filters
• Community-shared screening strategies
• One-click chart access from results

Free vs Paid: Free tier has most features but limits number of indicators per chart. Pro ($15/month) removes ads and adds advanced features.

4. Our Halt Tracker - Best for News-Driven Trading

Our real-time trading halt tracker is essential for finding penny stocks with breaking news. Trading halts often signal major catalysts creating the biggest intraday moves.

• Real-time halt notifications
• All major exchanges: NASDAQ, NYSE, TSX, TSXV
• Filter for stocks under $5
• Halt codes and reasons displayed
• Resume time tracking
• Email alerts for new halts
• Historical halt data

Best Paid Penny Stock Screeners

Professional traders often invest in premium screeners for real-time data, alerts, and advanced features. Here are the best paid options:

Trade Ideas ($99-$228/month) - Best for Day Traders

Trade Ideas uses artificial intelligence to find trading opportunities in real-time. It is the gold standard for active day traders and worth every penny for those trading daily.

Key Features:

• AI-powered stock discovery (Holly AI)
• Real-time scanning with second-by-second updates
• Pre-built trading strategies (50+ included)
• Custom alert creation
• Backtesting capabilities
• Automated order entry integration
• Live audio squawk of alerts
• Unusual volume and price movement detection
• Gap scanner for pre-market opportunities
• Statistical analysis and win rates

Pricing: Standard $99/month, Pro $228/month. Pro includes Holly AI, backtesting, and more strategies.

Best For: Active day traders, momentum traders, anyone taking 5+ trades per week.

TC2000 ($60/month) - Best All-Around Professional Tool

TC2000 combines professional-grade scanning, charting, and analysis in one integrated platform. Excellent value for serious traders.

• Lightning-fast scanning engine
• Unlimited custom scans and alerts
• Professional charting tools
• Build custom indicators with PCF language
• Scan results update continuously
• Mobile apps for iOS and Android
• Paper trading with virtual money
• Educational resources and training

Best For: Swing traders, position traders, technical analysis enthusiasts, traders who want everything in one platform.

Benzinga Pro ($99/month) - Best for News-Driven Trading

While not primarily a screener, Benzinga Pro is essential for traders who trade catalysts and breaking news. Real-time news beats market by seconds.

• Breaking news seconds before competitors
• Audio squawk of major events
• Earnings calendar and surprises
• FDA calendar for biotech
• Insider trading notifications
• Filtering by ticker, sector, or keyword
• Mobile push notifications
• Analyst ratings and upgrades

Best For: News traders, biotech traders, anyone trading catalysts.

Essential Screening Criteria for Penny Stocks

The key to effective screening is using the right combination of filters. Here are the most important criteria:

Price Range Filters

Price is your primary filter for penny stock screening:

• Conservative: $2.00 - $5.00 (exchange-listed only)
• Moderate: $1.00 - $5.00 (NASDAQ/NYSE)
• Aggressive: $0.50 - $5.00 (includes OTC)
• Day Trading Sweet Spot: $1.50 - $4.00
• Avoid: Under $0.50 (too risky, poor liquidity)

Volume Filters (Critical)

Volume determines if you can actually trade a stock profitably. Low volume means wide spreads and difficulty exiting positions.

• Minimum Daily Volume: 500,000 shares
• Preferred: 1 million+ shares
• Day Trading Minimum: 2 million+ shares
• Relative Volume: 1.5x or higher (shows unusual interest)
• Use dollar volume for higher priced stocks

Exchange Filters

Where a stock trades significantly impacts risk and liquidity:

• NASDAQ: Best regulation, good liquidity, lowest risk
• NYSE/NYSE American: Similar to NASDAQ, good choice
• OTCQX: Top tier OTC, has some oversight
• OTCQB: Medium risk OTC, minimal standards
• Pink Sheets: Highest risk, avoid unless experienced
• Beginners: Stick to NASDAQ and NYSE only

Market Cap Filters

• Micro Cap: $50M - $300M (volatile, high potential)
• Nano Cap: Under $50M (extreme risk/reward)
• Sweet Spot: $100M - $500M (balance of safety and upside)
• Avoid: Under $10M market cap (too small, manipulation risk)

Technical Filters

Add technical indicators to find specific setups:

• RSI: 40-70 (in uptrend, not overbought)
• Price vs 50-day MA: Above (confirms uptrend)
• Price vs 200-day MA: Above (long-term strength)
• 52-Week High: Within 20% (momentum stocks)
• MACD: Bullish crossover (trend change signal)
• Volume: Above average (confirmation)

Proven Penny Stock Screening Strategies

Different trading styles require different screening approaches. Use these proven strategies:

Day Trading Momentum Strategy

Find stocks with strong intraday momentum:

• Price: $1.00 - $5.00
• Exchange: NASDAQ or NYSE
• Volume: 2M+ shares today
• Percent Change: +10% or more today
• Relative Volume: 3x or higher
• Time: First 2 hours of trading
• News: Recent press release or catalyst
• RSI: 50-75 (strong but not overextended)

Swing Trading Breakout Strategy

Identify stocks breaking out of consolidation:

• Price: $1.50 - $5.00
• Price vs 52-Week High: Within 15%
• Volume: 1M+ shares, increasing
• Volume vs Average: 2x or more
• Price Pattern: Consolidation then breakout
• Price Above 50-day MA: Confirms trend
• News: Recent positive catalyst
• Float: Under 50M shares (easier to move)

Value Investing Strategy

Find undervalued penny stocks with fundamentals:

• Price: $1.00 - $5.00
• Market Cap: $100M - $500M
• Revenue: Actual revenue, growing
• Earnings: Positive or trending toward profitability
• Debt-to-Equity: Low or decreasing
• Insider Ownership: 10%+ (aligned incentives)
• Institutional Ownership: Some present
• Price-to-Sales: Below sector average

Gap and Go Strategy (Pre-Market)

Screen pre-market for stocks gapping up on news:

• Pre-Market Change: +15% or more
• Pre-Market Volume: 200K+ shares
• News: Significant catalyst (FDA, earnings, partnership)
• Float: Under 100M shares
• Price: $1.00 - $5.00
• Previous Day Volume: 1M+ (establishes liquidity)
• Gap Type: Gap up, not gap down
• Time: 8:00-9:30 AM ET

How to Build and Maintain Your Watchlist

A well-curated watchlist is your edge in the market. Follow this systematic process:

Daily Screening Routine

Make screening part of your daily pre-market routine:

• 7:00 AM: Run gap scanner for pre-market movers
• 7:30 AM: Screen for unusual volume and price action
• 8:00 AM: Check trading halts from yesterday and overnight
• 8:30 AM: Review news on screened candidates
• 9:00 AM: Finalize watchlist (5-10 stocks maximum)
• 9:25 AM: Set price alerts on watchlist stocks
• 9:30 AM: Focus on watchlist only during market hours
• 4:00 PM: Post-market review and plan for tomorrow

Watchlist Management Rules

• Keep list focused: 10-15 stocks maximum
• Research each stock before adding
• Remove stocks that break your thesis
• Add new opportunities as they appear
• Categorize: Momentum, Value, News-Driven
• Set price alerts at key levels
• Track insider transactions
• Monitor our halt tracker for your watchlist
• Review and refresh weekly

Common Screening Mistakes to Avoid

• ❌ Screening too broad: Narrow your criteria to find quality
• ❌ Ignoring volume: Low volume = unable to trade profitably
• ❌ Chasing extreme movers: Stocks up 100%+ often crash
• ❌ No fundamental check: Always research before trading
• ❌ Trading OTC as beginner: Start with NASDAQ/NYSE
• ❌ Too many watchlist stocks: Cannot monitor effectively
• ❌ Not using halt tracker: Missing major catalysts
• ❌ Static watchlist: Markets change, update constantly
• ❌ Screening once per week: Screen daily for best results
• ❌ Relying only on free tools: Consider paid screeners if active

Advanced Screening Tips

Combine Multiple Filters

The most powerful screens combine technical, fundamental, and catalyst filters. For example: Price $1-3 + Volume spike + Recent insider buying + Near 52-week high. This finds strong technical setups with fundamental backing.

Use Relative Strength

Screen for stocks outperforming their sector. If biotech sector is up 2% but stock is up 15%, that is relative strength worth investigating.

Monitor Insider Activity

Add insider buying as a filter. When executives buy their own stock, they often know something positive is coming.

Conclusion: Screening is a Skill

Effective penny stock screening is not about finding the perfect filter combination—it is about developing a systematic process that consistently delivers quality candidates matching your trading style. Start with free screeners like Finviz to learn the basics. As you become more active, consider investing in premium tools like Trade Ideas for real-time alerts and AI-powered discovery.

Make screening part of your daily routine. Experiment with different filter combinations to find what works for your strategy. Always combine screening with fundamental research—never trade on screening results alone. Use our halt tracker to catch breaking news on your watchlist stocks. Over time, you will develop screening skills that give you a significant edge in finding profitable penny stock opportunities before they become obvious to everyone else.