Penny Stocks Fortunes

Mar.30, 2010 in Stock Trading

Talk to the big boys in the stock trading industry about penny stocks and you may get some unwelcome comments, yet many, probably secretly, trade these much maligned stocks. They know only too well the potential for massive, quick profits from the penny stock marketplace, so when the big value market is flat, they move to the microcap.

This shift in money will have a significant effect and if you’re in it, there are big profits to be reaped.

How so? Well look at the math: Major stocks command big prices and significant rises in value rarely happen with any rapidity, yet a penny stock can have significant value movement because the price is so low.

Say you had $5k to invest; a financial market stock might set you back $50 per share, so you would buy 100 units/shares. Now for those shares to go to $60 or a 20% increase, might take months or more, yet for a share costing a 1 penny, a 20% movement will happen in days, maybe even hours depending on market sentiment.

Sometimes a penny share will go from 1 to 1.5 or even 2 pennies in a matter of a couple of days, which will provide you, the astute investor, significant profits.

But as with any trading, a little knowledge will have significant advantages. Understanding the signals that can forewarn of movement in the share price will make the difference between rapid profits and price stagnation, so if this market interests you, learning how to recognise these signals so you make your move at the right time, will give you a significant advantage.

The penny stock market is not one I would every consider as a long term investment market, I personally see it as a quick in.. quick out market, similar to Forex scalping yet over a slightly longer time period, plus it will pull even bigger profits when approached with understanding of the dynamics.

If you want to get a better understanding of this dynamic market and learn how to read the signals, entry and exit points, based on predictable market dynamics, get the package, you’ll learn all about it and be provided with emails of stock picks, their entry and exit points plus much more.