Mar 30 2010
Penny Stocks Fortunes
A often overlooked area of stock trading is the lowly penny stocks. For some reason many people seem to discount them as they do not possess the glamour of high ticket mining companies or financial institutions, yet, when traded the lowly penny stock can generate incredible profits very quickly.
Let me explain the math behind this:
You have $5000 to invest and decide to buy a big ticket mining stock for say $25. Your investment will give you 200 shares (I am not worrying about brokerage etc). For this stock to go to $30 or a 20% increase is a significant move and could take months or even years.
Now if you purchased the same value in penny stocks, you would own 500,000 shares and these could easily move from 1 penny to 1.5 pennies (a 50% increase) or even double to 2 pennies in a very short period, reaping you some very significant profits! No I am not kidding… Because these stocks are so cheap and easily influenced, this happens and remarkably regularly!
How would you feel if your $5000 investment became $7500 or even $10,000 in a matter of a couple of days? Happy… you bet you would be!
This is the capital growth power of penny stocks, and the smart folks know it!
Now a word of caution; Stocks can go the other way, yes… even penny stocks can drop, so there is always a risk for those who don’t know what they are doing. The charts that apply to the major stocks still apply to the ‘penny dreadfulls’ as they used to be known.
So before you jump in boots and all, you need to understand a bit about the microstock marketplace.
What did college cost for your education and how long did that take?? Well make a small investment in gaining knowledge in the penny stock marketplace, it’ll be the difference between success and failure, heck your first successful trade will cover it!
Are you going to be the next Penny Stock Millionaire???



