January 7, 2016 at 12:40 pm #390AnonymousPennies: 0
Becoming a penny stock trader is an interesting investment decision. The gains or losses can be spectacular, but overall the gains historically outperform traditional stocks by almost a 10:1 margin.
Many people have become millionaires after becoming penny stock trader. At the end of this article you’ll find out how I started, and how you can too. Yes, you can too. You’ll learn how.
Because of the huge potential gains does that mean everyone should be a penny stock trader, or that your portfolio should be made up of nothing but micro cap stocks? No.
Does the volatility mean you should avoid these stocks altogether? No, not at all. Penny trading can be very profitable, and there’s a smart way to get started to mitigate risks and choose stocks with high potential.
The best solution is to learn about micro cap stocks and how to trade them. Then, make a portion of your investment portfolio dedicated to micro cap stocks; roughly 10% – 20%. You’ll be tempted to do more, but you only need a few good micro cap stocks to make a lot of money.
If micro cap stocks can produce great gains as well as losses, how do people become millionaires as a penny stock trader? Well, you probably won’t like my answer, but here it is… the answer is finding the right stocks, and knowing when to take a position in those stocks.
Ok, sounds too easy. How do you do that, you ask? I’ll get to that in a second. But first realize that these micro cap stocks are typically young emerging companies in emerging markets. The potential gains can be enormous because these stocks start-off literally at pennies a share, and then climb to dollars a share, producing gains of 200%, 300%, 400% and more.
Microsoft, Walmart, Dell, Southwest Airlines, and many others started off as micro cap stocks, making millionaires out of the early penny stock traders in these companies.
But getting enormous gains assume a financially solid and growing company with great prospects in their market. Which leads me to the secret of being a winning penny stock trader… knowing how to find the right stocks (solid companies poised for growth).
The reason why people “make” millions as a penny stock trader is because they learned how to research financially sound stocks and when to buy and sell them, including “how” to buy and sell them to mitigate losses, and maximize gains… and I’m talking BIG gains.
The reason why most people “lose” money is because their approach is too cavalier, with little research. Instead, they pick stocks about as well as they do all their other stock and mutual fund investments; they pluck stocks from air, based on what sounds good, or someone’s advice, often with very little research. They choose shortcuts and hope for the best.
Wouldn’t you rather “know” you have a winner, rather than hope? I don’t know about you, but I hate losing money. I like to know my money is invested wisely.
Becoming a highly successful penny stock trader means doing just a little bit of research, knowing exactly what to look for, and then knowing when to buy and sell. It’s easy once you know how.
There is an incredible Penny Stock Investment Guide that teaches how to become a winning penny stock trader in just one evening, using the same techniques as the pros, and it’s free!
I found you can use the investment guide on “any” stock purchase, not just micro cap stocks. It’s helped me tremendously. Now I know a good investment when I see it. I can even spot hidden gems before everyone else.
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