Penny stocks - Navigating The Wild West of the Stock Market
Greetings,
Penny stocks are certainly not for the faint of heart.
When I say “penny stocks” I of course mean those crazy stocks trading tens of millions (sometimes hundreds of millions) of shares every day, with daily fluctuations ranging anywhere between 30% and 1000% in share price.
Most of the stocks we cover trade near or below a penny - they carry the most risk, however also deliver the greatest return potential.
The reason you are here, and why you should be looking for a service to help you navigate this field, is simple - the world of penny (and sub-penny) stocks is as wild as it is fun and because of this, until you learn the ropes, it’s “buyer beware” because this world is rife with pitfalls and land mines.
One bit of knowledge that keeps us grounded when analyzing a penny stock is: “Stocks go up for one reason (people are buying), but go down for countless reasons.”
We know why we trade and invest in penny stocks - the profit potential is huge. It’s very possible to walk away with capital gains of 100%, 300% and even 1000% or 10000% in 1-5 days.
So how can we dissect this bit of knowledge to our advantage, and eliminate as much risk as humanly possible before jumping into a penny stock?
If we know that all stocks rise on demand (buying) and fall on supply (selling), it would make most sense (at least to us) to track down the source of reasoning for the buying or selling.
I will immediately rule out tracking the reason for selling - this area is too broad to cover. The seller may need to pay for a mortgage, a boat, a car, a lover’s gift, cover a debit in their account, or simply sell because he/she feels their investment is overvalued.
However people buy for ONE reason - they believe the stock will go up. Unfortunately it’s not that simple. Most people who buy for this reason are led to beleive, usually by a third party, that this particular penny stock is undervalued.
The third party can be one of several possibilities: a public bulletin board, a stock broker, a newsletter, a friend or co-worker, etc. It’s critically important to keep in mind each these third parties have a specific and vested interest in getting you to buy their “hot tip”. Whether they are getting paid to promote, paid a commission or paid indirectly by spreading their tip to you; they benefit in some way by having you buy the stock in question.
Penny Stock Rockets has been at this for a very long time, and we are happy to disseminate and share our research with you. Our penny stock advisory newsletter is completely free (and unbiased); we send out stock alerts, tips, research, meaningful news releases and general information on a regular basis.
We hope this information will help you approach penny stock investing with a clearer perspective on what’s really going on behind the scenes.
Please note we are not licensed advisors, therefore cannot give out specific “buy” or “sell” advice; however we can and will tell you which stocks we believe are about to go through the roof!
Our track record is solid, our subscribers have been profiting regularily.
We hope to see you on board.
Penny Stock Rockets