There’s no better value and higher return investing method than Penny Stock Investing, but how can one find these stocks before they skyrocket?
All stocks under $5 are considered ‘penny stocks’, and they usually appear just as risky as any other stock, if a penny stock is to sky rocket this will usually happen because of a company merger or other groundbreaking, positive news.
Penny stock investing can be very tricky and one has to be careful about their sources of ‘privileged’ information, but success does occur, penny stocks do skyrocket every now and then. When this happens and you have failed to act on that privileged information, it feels almost like having thrown away a winning lottery ticket!
Penny Stock Investing Tips For Success
When you are looking to buy penny stocks, the way to go, is to buy low priced (by the market) stocks of companies that have much higher intrinsic value. Penny stock investing can be extremely profitable and breathtakingly surprising, but unfortunately there’s not that much technical analysis you can do on them.
Another thing you have to realize about Penny Stock Investing is that you can take advantage of extremely low priced stocks (Below $0.50) and exploit the fact that your downside risk is only $0.50 or less, while the stock may fluctuate between $0.2 and $0.6 many, many times throughout a long time period, so apart from just expecting the breakout jackpot you can also make a series of small, but high frequency gains throughout the waiting period, by allocating the investment capital 50/50 over these 2 different principles.
Trading penny stocks is very interesting and you may well figure out more ways to predict price movement, you should however notice that previous highs is no guarantee of the stock rallying back up! You must look into the facts and fundamentals that caused the sell off. You should also engage in high volume, liquid stocks only, it is high illiquidity that will make the stock skyrocket, but it has to be liquid all along, and certainly more liquid than other counter parts.
Penny stock investing requires exploring all these aspects, fundamentals, company history and market liquidity, in order to filter out penny stock traps. Price alone is absolutely meaningless as is previous price and intriguing previous highs.
The stock below has been bought by savvy investors and is believed to fulfill penny stock investing expectations:
The stock on the above chart is priced at $0.43, if it rallies to $5 it will make a 1036% gain and the savvy investor will increase his money 11 fold, certainly it’s better than the lottery since the probability of losing all of his or her money is very small even if things go wrong.
Unfortunately with Penny Stock Investing there’s no magic technical analysis, other than the 200 day average and possibly a questionable trendline (Just breached in the end of the chart), I don’t see any other technical reason for a breakout, if it does happen it will be because of strong, secret fundamental reasons, and in this particular case we did spot savvy trader activity!
Stock Market Trading Strategies, Tips and Speculation by..
Scott Smith – Investing In The Stock Market © 2008 – 2010
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I have a web site where i research stocks under five dollars I have many years of experience with these type of stocks I would like to recommend a penny stock that I think can profit from the so called internet tsunami. the company PFSweb Inc. symbol (PFSW) trades around 3.00 dollars a share. provides integrated e-commerce and business process outsourcing solutions to companies in the United States, Canada, and Europe. It offers a range of services, including professional consulting, technology collaboration, managed Web hosting and Internet application development, order management, managed web hosting and web development, deployment of an eCommerce technology platforms, customer relationship management, kitting and assembly services, information management, and international fulfillment and distribution services, as well as financial services comprising billing and collection services, and working capital solutions. In addition, the company, through eCOST.com, engages in online discount retail of new, close-out, and recertified brand-name merchandise, I think the stock can get to 30 dollars a share over the next five years.
I have bought 20 thousand shares of Fannie Mae (FNMA) stock at .0268 . I invested almost $5,600.00 dollars with brokerage fees included.
The next year I plan to invest at least 4 thousand dollars into Fannie Mae. I will continue to do so until the company goes out of business or the stock gets to pricey . I am building a portfolio based on cash and Oppenheimer Funds.
I will buy 100,000.00 shares of Lehman Brothers Holdings (LEHMQ.PK) at least .04 or less, I hope. I will invest almost $8,000.00 dollars in 2012 in this company.
My goal is to at least make a million dollars in the long term in order to place that money into Oppenheimer funds and get at least $5,000.00 monthly and retire.
These two companies are the backbone of the U.S. economy that went down in the years 2008-09 during the financial meltdown. It’s been 3 years and they are still trading low. If the economy recovers one day in the USA so should these stocks.
I can afford to lose $12,000.00 yearly trying to retire with 1 million dollars. We are also paying our mortgage quickly and saving cash. This is very important so I am not forced to sell in the wrong moment because I don’t have money.
This is my plan . I love it. I hope you too.