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You may
be asking yourself... Why Penny
Stocks? The reason is very
simple. Small Cap Stocks offer
something other investment
vehicles do not which is "the
ability to generate a 100-1000%"
return on investment when either
short term or day trading.
According to the SEC, The term
“penny stock” generally refers
to low-priced (below $5),
speculative securities of very
small companies. While penny
stocks generally trade
over-the-counter, such as on the
OTC Bulletin Board or in the
Pink Sheets, they may also trade
on securities exchanges,
including foreign securities
exchanges. In addition, penny
stocks include the securities of
certain private companies with
no active trading market.
Before a broker-dealer can sell
a penny stock, SEC rules require
the firm to first approve the
customer for the transaction and
receive from the customer a
written agreement to the
transaction. The firm must
furnish the customer a document
describing the risks of
investing in penny stocks. The
firm must tell the customer the
current market quotation, if
any, for the penny stock and the
compensation the firm and its
broker will receive for the
trade. Finally, the firm must
send monthly account statements
showing the market value of each
penny stock held in the
customer’s account.
Penny Stocks are more or less
speculative stocks, which trade
on the OTC-BB & Pink Sheets.
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Blue Chip Vs.
Micro-Cap
Generating The
Highest Return On
Investment
In The
Shortest
Amount Of Time |
While you may be skeptical about
purchasing higher risk penny
stocks, the fact is that your
return on investment has a
higher probability of being more
than if you were to buy into a
blue chip "big cap company".
What stock investing really
comes down to is workable
trading capital. You can not
expect to earn a significant ROI
buying into a stock trading at
$50 share when you only have a
$1,000 to invest. In order for
you to turn your $1000 worth of
shares into $2000, the stock
would have to jump to
$100/share. For blue chips that
are trading at $20-$100, it is
an unlikely scenario in the
short term. It just doesn't
occur as often as in the Penny
Stock Market.
If you are a long term investor
who is concerned about risk,
then blue chips maybe for you as
there is a lesser risk since
listed companies offer solid
financials and credible press
releases. Blue Chips that trade
on the Big Boards "AMEX, DOW"
must meet strict requirements to
maintain their listings so
you'll have the comfort of
knowing that there is strong
regulation and therefore a
relatively more safe trading
environment. Stocks Listed on
the otc-bb & pink sheets are
regulated, but oversight and
listing requirements are
minimal, so buy and selling
stocks is really is like the
wild west in many regards.
But, unlike Blue Chips, penny
stocks will allow you to turn
$1000 into $2000 or more in a
single trading day in the
OTC-BB, Pink Sheet & Foreign
Markets.
Additionally, the OTC-BB & Pink
Sheet Markets boast one of the
largest concentrations of high
volume micro-cap stocks that are
constantly fluctuating between
set resistance and support
levels under .10 Market Makers &
seasoned day trader's are making
six-figures a year playing the
pennies.
Within our eBook, we provide a
list of all OTC-BB Penny Stocks
and resources for you to find
picks that are in play that are
showing positive momentum.
Using our guide, you will easily
be able to search online
databases & compile your own
unique list of penny stocks that
will enable you to identify
stocks that are showing patterns
of price fluctuations.
A Penny Stock can jump from
.01-.02 within a day or a few
days, and your return on
investment will be 100%. That's
right, there are thousands of
stocks that do this daily, and
penny traders are earning a very
healthy income by placing
buy/sell limit orders where they
don't have to be online for
their order to execute when the
stock reaches their target buy
price.
To make money, the BID price of
the stock you purchase has to
obviously increase. But,
remember, in order for you to
make any profit at all from your
investment, the BID price has to
exceed the ASK price "which is
the price you purchased the
security at". This is why you
must pick a penny stock that had
decent volume, news & a minimal
spread "the price difference"
between the ASK and BID price.
If a stock is trading a .05 with
a BID price of .04, you will
obviously buy at the ASK Price.
To realize a 100% return on
investment, the BID price would
only need to hit .10/share which
is only .05 from ASK Price..
These fluctuations occur daily.
Once you find a penny stock that
is showing volatility, and you
have identified the support and
resistance levels, simply set
your 24-48 hour buy/sell limit
orders through your online
brokerage account, and leave it
on autopilot until the stock
activity comes to a crawl.
You will usually be able to able
to ride the wave of momentum
numerous times, cashing in on
every buy/sell order execution.
Our original trading methods are
known and in use by the most
successful penny stock trader's
to day, and our patented small
cap classification techniques
have been published in the most
prestigious books, magazines &
investment web site over the
years.
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As we
had mentioned before, there are
different classifications of
penny stocks. A Penny Stock
defined by the SEC is under
security trading under $5/share
which includes stocks that are
trading at under .01. Millions
of shares are bought and sold
daily that trade for a fraction
of a cent per share.
YOU WILL BE ABLE TO GENERATE
HUNDREDS OF PERCENTAGES IN
PROFITS BY SIMPLY TRADING STOCKS
UNDER .01 A SHARE.
You can buy a penny stock at
.001. This stock would only have
to jump .001 for you to double
your investment amount. Tens of
thousands of stocks fluctuate
between these points. With our
guide, you may use the online
portfolio managers to track
stocks and identify micro-penny
trends so that you will be able
to make 100-1000% in profits
within a few short hours.
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The Benefit of
Margin Accounts |
We can't stress enough how
important a Margin Account is
for penny stock traders. With a
margin account, you will be able
to double the buying power in
your account so that you can
magnify your profits when you
place your orders.
The way it works is that your
broker lends you "the account
holder" cash to purchase
securities. Unlike a cash
account, a margin account allows
an investor buy/sell securities
with money he/she does not have.
This is basically a way of
leveraging your money to provide
you with more buy power. If
however, you begin to lose
money, you will have to deposit
money into your account to keep
it from being frozen. The
Federal Reserve limits margin
borrowing at 50%.
So, if you find a penny stock
that you believe will do well,
you may amplify your order by
borrowing money from your
broker. This is a great way to
increase your accounts value.
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We are one of the only web sites
to discuss International Small
Cap Diversity. If you've been to
any other penny stock web site,
you will know that they fail to
talk about this. There are
millions of investors worldwide
buying and selling securities in
the U.S. Markets, because that's
where they believe all of the
money is. The fact is, there are
hundreds of thousands of penny
stocks that perform the same way
as U.S. stocks do, and best
thing about it is that there are
less people influencing the
price of the stock and their
losses and gains.
Our featured eBook provides
resources that you can use to
find foreign penny stocks that
you can play that in most cases
pose a lesser risk than U.S.
penny stocks, that will yield
more of a return on your
investment.
We are serious about penny
stocks, and are dedicated to
providing the essential
resources & tools needed for
traders of any experience level
to improve their chances at
making phenomenal gains in the
Domestic & International Small
Cap Market.
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Fundamental and
Technical Analysis |
While we agree that Fundamental
and Technical Analysis are
critical when buying and selling
penny stocks "as mentioned and
covered in our guide"; you
should not rely on these alone.
There are many factors that
cause a stock to fluctuate. You
must know how to sense what the
market is doing.
By taking time to observe the
market conditions, only then
will you be able to make an
educated decision on how you
should play your next stock in
the market. Remember, not
everything is black and white.
We've spent years analyzing
penny stocks and one thing we
can tell you is that it's not
all about complicated
techniques, formulas and news.
It's about feeling the market,
and getting a gist of what
traders are looking for. If you
use your own mind, and employ
our simple stock market analysis
techniques, you will see an
increasing number of trades.
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We receive hundreds of emails a
week from new investors asking
us what they need to do to get
started trading these unique
securities. Most have never
placed a trade in their life,
and are intimidated by the
thought of putting their money
into the markets./font>
The fact is, you can start with
as little or as much as you
want. You don't need to be an
expert trader with a $1 Million
in your account. All that you
need is an individual brokerage
account with an online broker,
and a minimum of $50-100 to
begin buying shares.
We always insist that new
traders start small and get a
few trades under their belt
before move on to larger trade
amounts.
As a bonus to customers who
purchase our guidebook, we offer
a list of the most popular
Online Market & Stock Simulation
Web Sites that you can go
register with for FREE where you
can practice paper trading using
REAL-TIME market data. Whatever
you do, we ask that you do not
pay for this service as they are
FREE.
Within our eBook, you will find
a list of Online Stock Brokers
that specialize in penny stocks
that you can place orders with.
To open an account, simply fill
out their online application
form, and mail it in. All that
you will need to present is a
National ID Card & Passport from
your home country. No Social
Security Number is required with
some brokers if you are a
non-resident of the U.S. Others
require a Social. |
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