I have been trading stocks for a long time for a hobby. However, it was not until I started trading penny stocks that I made enough profit that I could easily quit my primary income job and trade stocks. I know what you’re thinking … how does he do it, right? Read on and I will tell you.
Recently I have read several online articles on various sites that claim that trading penny stocks is like gambling. As an active and very successful stock trader, these sorts of statements irritate me as they are not the most traders who trade for otcbb and pinksheets. In fact, far from it, I don’t really enjoy any type of gambling because I enjoy making money. I don’t even like going into casinos, but playing poker can be fun poker pulsa.
Now this is not to say that some traders are out there doing the same random pattern with the trade penny stocks on a lever on a slot machine or rolling the dice while drunk in Las Vegas. However, these are usually newbies to the stock market and they burn out very fast. Penny stocks with soon-to-be-learned techniques that allow them to do so and they soon learn that they can make more money with less than $ 5 per share. $ 5 per share and have a much larger market cap and total net worth. The ones I look for are those that break out of the verge and once I make a nice profit I usually sell and lock in my profit. I am not a daytrader but I also don’t believe in greedy I miss out on locking in when I have a chance to do so.
I also want to be completely honest with you. Penny stocks are notorious for being involved in scams where unscrupulous people manipulate the price by promoting certain Penny stocks in a less-than-truthful or ethical way. You’ve probably heard of “pump and dump” scams and whatever method is imperative that you employ to trade these stocks.
There are many of us that make a consistent basis trading penny stocks. We’ve learned how to minimize risk and avoid scams. We have also learned how to find the top 1% of these stocks and when to trade these to maximize profit.
There are a number of market caps that have high prices and that have been used for “stocks”. For me though, I have found that this type of analysis does not work well for most of the Penny stocks. However, it does work for some of them and for the times when it does work, this method would certainly not be considered by anyone who understands the stock market.
Although I will say that the “Leeds method” and similar approaches to finding good penny stocks are two reasons for the choice of my first method. First, it simply doesn’t work for many categories of penny stocks that I think show promise a great deal. These included ones that I have traded and made from a very nice profit! Second, it takes an enormous amount of time to analyze these types of methods with just a few stocks and once you go through the very steep learning curve, it can take months, in fact, to truly master.
What I would rather do is buy premium stock picks from professionals who specialize in penny stocks and really know how to use them in a variety of ways. This would of course include “fundamental analysis” techniques where possible but also the best services to know how to play “detective” and ferret out the important facts that everyone else learns about. I learned early on that my sources of picks before I ever traded them. Then, once I have found a trusted source that sends me consistently good picks, I trade only the best of them. I also only trade the picks that make the best sense. Sometimes I do have a bit of research but I have tested my sources so well that I know which ones to send to winners on a consistent basis. To me, this is a very logical and very profitable way of trading penny stocks. It’s not the least in gambling!
Visit my penny stocks website to learn my best source of penny stock picks and how to make penny stocks with money.