If you’re like me, you’ve seen all the headlines about the overwhelming amount of money people on Wall Street make. Ever since I was a kid, I wanted to be a part of it. I wanted to make the kind of money they were making. That only left me with one little question…how?
Oh yeah, that’s the hard part. I grew up in a poor family but was lucky enough to start a business on my own, with no money, and have it take off. Eventually I built up some savings and wanted to start trading. Unfortunately, it’s not easy. After about five years of losing my life savings through trading on my own, listening to what I read in books, following charts and things like that, I was finally ready to give up. Luckily, I didn’t.
Completely randomly, during the course of my research I stumbled onto some information about penny stocks. I had heard my business partner talk about them before but I didn’t really understand them and I was caught up in trading the big stocks so I had no interest. That was before he showed me how while I was out there losing 10-20% a month, he was actually profiting 100-300% in a month.
I couldn’t believe it! I had to find out how he did it. He told me he trades based on something called penny stock alerts. A penny stock alert is basically a penny stock pick, but supposedly timed just right so you can make immediate profits or at least make profits within a month or so of when the alert comes out.
Sounded a little too good to be true, but man, I went online so I could start receiving these alerts and oh boy…I sure have done well from it. I honestly thought there was no way it could work, or at least there was no way I could make as much money as he was saying he made. I thought he was full of it. Lo and behold, these are some Hot penny stocks! The penny stock picks I’ve been getting have made me the same 100-300% he has been making for the past six months.
Penny stocks aren’t for everybody, they kind of move around wildly. However, if you follow the penny stock alerts and make sure to cash in some gains when you’re up, it’s not too risky and the potential gains are huge. One time I made 2000% in one trade! I only bet a thousand bucks and I ended up with around $20,000.
Saturday, April 17, 2010
Penny Stock Picks – Do Penny Stock Alerts Really Work?
Since I’ve started trading penny stocks, everyone is always asking me how penny stock pickss and penny stock alerts work and IF they really work or if they’re too dangerous to actually trade. Well, the truth is it’s a little bit of both.
First of all, let me explain what a “penny stocks alert ” actually is. Penny stock alerts are what newsletters send out to their readers to let them know about hot penny stocks. You know, like a penny stock that’s on the move. These can be takeover rumors, unusual trader activity, insider trading, good news, rumors, undervalued companies, etc.
When the newsletters find something that they think can make you money, they sound you out an email. Does it work? Definitely. Some of the picks I’ve seen have gone up hundreds or even thousands of percent in days, sometimes even in one day. So if you’re wondering if it works, it most certainly does.
Then of course it sounds a little too good to be true, which brings on the next question I always get, is it risky? The answer again is…definitely. Penny stocks are very volatile, which means they can move up very rapidly and make you a ton of money. They can also move down very quickly, and cost you money as well. So they are certainly risky little fellows.
So knowing that it DOES definitely work, but that it is also risky, the final question is…is it worthwhile? Well, unfortunately I can’t answer that for you. What I can do is tell you that for me it’s been extremely worthwhile. I’ve made hundreds of thousands of dollars from penny stocks. In my opinion the key is risk management, you’ve absolutely got to make a plan and stick to it. Realize that some of these “hot penny stocks” are actually going to be losers, so be prepared to cut your losses if the trade goes against you. The majority are going to be winners, so be sure to sell all or a portion of the stock while you’re up, so you can guarantee you make some profits. Don’t be too greedy!
Some of these penny stocks make huge runs, but then fall back down. So you never want to wait until they fall to sell them. In my own personal opinion, I think if you’re up 50-100% you should sell. You may miss a big 300% run, but you’ve still guaranteed yourself a big profit. Also, don’t EVER let a trade go too far against you. Most people I know will let themselves go down about 15-20% if the trade goes against them. If half the Penny stocks picks are winners and you make 50%, and half are losers and you lose 20%, well…you do the math. From my experience, more than half the picks I’ve been trading are winners so usually the math works out a lot better for me.
First of all, let me explain what a “penny stocks alert ” actually is. Penny stock alerts are what newsletters send out to their readers to let them know about hot penny stocks. You know, like a penny stock that’s on the move. These can be takeover rumors, unusual trader activity, insider trading, good news, rumors, undervalued companies, etc.
When the newsletters find something that they think can make you money, they sound you out an email. Does it work? Definitely. Some of the picks I’ve seen have gone up hundreds or even thousands of percent in days, sometimes even in one day. So if you’re wondering if it works, it most certainly does.
Then of course it sounds a little too good to be true, which brings on the next question I always get, is it risky? The answer again is…definitely. Penny stocks are very volatile, which means they can move up very rapidly and make you a ton of money. They can also move down very quickly, and cost you money as well. So they are certainly risky little fellows.
So knowing that it DOES definitely work, but that it is also risky, the final question is…is it worthwhile? Well, unfortunately I can’t answer that for you. What I can do is tell you that for me it’s been extremely worthwhile. I’ve made hundreds of thousands of dollars from penny stocks. In my opinion the key is risk management, you’ve absolutely got to make a plan and stick to it. Realize that some of these “hot penny stocks” are actually going to be losers, so be prepared to cut your losses if the trade goes against you. The majority are going to be winners, so be sure to sell all or a portion of the stock while you’re up, so you can guarantee you make some profits. Don’t be too greedy!
Some of these penny stocks make huge runs, but then fall back down. So you never want to wait until they fall to sell them. In my own personal opinion, I think if you’re up 50-100% you should sell. You may miss a big 300% run, but you’ve still guaranteed yourself a big profit. Also, don’t EVER let a trade go too far against you. Most people I know will let themselves go down about 15-20% if the trade goes against them. If half the Penny stocks picks are winners and you make 50%, and half are losers and you lose 20%, well…you do the math. From my experience, more than half the picks I’ve been trading are winners so usually the math works out a lot better for me.
Hot Penny Stocks – Deathtrap or Road to Riches?
Hot penny stocks are certainly a hot topic these days. What I wanted to know is what are they? Can they make me money…and of course, how risky are they? They sounded extremely risky but I have to admit I was very intrigued by their potential. We’ve probably all heard stories about some guy who turned $1000 into a million dollars with penny stocks, but are they for real?
Well first…what are hot penny Stocks? A hot penny stock is basically a penny stock that is either about to make a huge move upwards, or has already begun making a big move.
I’ve traded regular large cap NYSE stocks for years and was very curious how trading penny stocks would be different from the stocks I was used to trading. I’ve found that it’s really just a more intense and fast paced version of the same thing.
So what are hot penny stocks exactly? How do you know which penny stocks are hot, and which ones are not? Basically, here is how it works. Since penny stocks are small and relatively unknown, they aren’t really covered on television, or by major analysts. Most coverage of penny stocks is conducted by online newsletters. There is a surprisingly large community of penny stock investors and traders that follow these newsletters.
So how do you find out where the hot penny stocks are? My advice, follow a newsletter.
Now, how much money can you make on hot penny stocks? I’ve personally seen gains as large as 2000% in one day. However, that is uncommon. More realistically, a nice gain that is very common is anywhere from 50% - 300% within 1 day to 1 week.
How risky are they? VERY risky, but NOT if you play them correctly. Hot penny stocks make huge quick profits, and they cool off just as quickly as they heat up. The key to success is to take profits when you are up. Don’t be greedy. Be ready to bail out quickly if the trade turns against you, and ALWAYS cash in profits when you are up. When I receive an alert on a hot penny stock, I act on it right away and I sell when I make a solid profit. I think it’s too risky to not cash in when I’m up. That is what works for me, and it works very well.
It’s also extremely crucial to choose the right newsletter to follow. There are a few decent ones out there but I’ve found the most reliable and consistent one to be www.pennystockalerts.com.
I recommend my trading strategy and the newsletter I just mentioned, but you should experiment and see what works for you. It’s a lot of fun and I make money with penny stocks a lot faster than I used to with the big boys. I’ve gone from making 30% a month to making 30% a day. Hope it works out the same for you.
Well first…what are hot penny Stocks? A hot penny stock is basically a penny stock that is either about to make a huge move upwards, or has already begun making a big move.
I’ve traded regular large cap NYSE stocks for years and was very curious how trading penny stocks would be different from the stocks I was used to trading. I’ve found that it’s really just a more intense and fast paced version of the same thing.
So what are hot penny stocks exactly? How do you know which penny stocks are hot, and which ones are not? Basically, here is how it works. Since penny stocks are small and relatively unknown, they aren’t really covered on television, or by major analysts. Most coverage of penny stocks is conducted by online newsletters. There is a surprisingly large community of penny stock investors and traders that follow these newsletters.
So how do you find out where the hot penny stocks are? My advice, follow a newsletter.
Now, how much money can you make on hot penny stocks? I’ve personally seen gains as large as 2000% in one day. However, that is uncommon. More realistically, a nice gain that is very common is anywhere from 50% - 300% within 1 day to 1 week.
How risky are they? VERY risky, but NOT if you play them correctly. Hot penny stocks make huge quick profits, and they cool off just as quickly as they heat up. The key to success is to take profits when you are up. Don’t be greedy. Be ready to bail out quickly if the trade turns against you, and ALWAYS cash in profits when you are up. When I receive an alert on a hot penny stock, I act on it right away and I sell when I make a solid profit. I think it’s too risky to not cash in when I’m up. That is what works for me, and it works very well.
It’s also extremely crucial to choose the right newsletter to follow. There are a few decent ones out there but I’ve found the most reliable and consistent one to be www.pennystockalerts.com.
I recommend my trading strategy and the newsletter I just mentioned, but you should experiment and see what works for you. It’s a lot of fun and I make money with penny stocks a lot faster than I used to with the big boys. I’ve gone from making 30% a month to making 30% a day. Hope it works out the same for you.
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