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A Beginner's Guide to Investing With Penny Stocks
Penny stock investing has proven to be an affordable way for many investors to take advantage of the stock market.
These kinds of stocks have become a favorite among even beginning investors who have limited financial resources
when starting out. Getting involved in the stock market is a great way to start a career in investing. When you are just
starting out, penny stocks due to their low cost can be quite advantageous. There are many penny stocks out there
and because they trade so low (under $5.00 a share) it’s easier to buy them than blue chip stocks.
Penny stocks can move huge percentage gains sometimes in just one day. It is not uncommon for some penny
stocks to move 50% or higher in just one trading session. The benefits of penny stock investing include:
1. Low start up. Inexperienced investors who don’t have a lot of money can purchase these low priced stocks.
2. Penny stocks are easy to buy. There are many penny stocks in the market and information regarding them can be
easy to find.
3. The low cost of penny stocks allows you to buy more shares, thus hopefully making your profits bigger.
4. Their low cost can allow you to diversify your portfolio and put your money into different ones.
5. Penny stocks allow you to get involved with new companies that are trying to grow and become big.
Penny Stock Investing With the Pros
Trading is not easy. People have gotten rich quickly in the market with penny stocks but it still took hard work and a
lot of commitment to make it happen. The ones who know how to make money the fastest by trading penny stocks
are the professionals.
So who are the professionals? Any who makes a living trading penny stocks can call them self a professional.
Professionals are proving that it is possible to make a career out of trading penny stocks. It's possible to make a fast
$10,000, or even a six figure amount trading these kinds of stocks.
There are many professionals on the internet who offer their investment strategies and stock tips for free. Many
newsletters will offer penny stock ideas and the people behind them are professionals who know the inner workings
of the penny stock world almost inside and out.
If you're new to the market and looking for guidance, getting advice from a penny stock professional can be extremely
helpful. Finding an honest professional may not be easy, but they are out there. Once you find one with an impressive
track record, keep in mind that there is a golden rule that still must always be followed. This rule is to research. You
must always check every professional's advice and tips by conducting your own proper research. This will help
ensure that the advice you get is credible.
If you want to become a professional penny stock trader yourself, you will need to commit yourself to a lot of hard
work. It takes time and effort to learn how the market works and you will need to learn how to do proper research and
analysis. It will take time but you can take your penny stock trading status to a professional eventually. Until then,
trust in honest professionals with honest newsletters.
Micro Cap Stock Recommendations
If someone came to you with a hot penny stock tip, what would you do with the information? Do you have the skills
and knowledge necessary to evaluate the recommendation and react appropriately? No investor wants to pass up a
“sure thing”, but no one wants to lose their money either…so how can you be certain you’re making the right
We’ve all had the chance to act on a microcap recommendation, and have all agonized over whether to commit our
funds or not. While we typically tend to react emotionally, ideally, the answer lies not in an emotional response but
rather in both research and common sense. It’s true that many investors have reaped the multiple-fold rewards of
penny stock investing, yet equally true that as P.T. Barnum so famously said, there’s a sucker born every minute.
Here’s what you have to do to make sure you’re not one of them:
1. Seek Legitimacy: How did the tip come to you? There’s a distinct difference between being solicited by a stranger,
whether in person, via fax, or over the telephone or internet, and being privy to information and developments
because of a personal relationship you may have with someone working for or affiliated in some way with the
company in question. Recommendations from boiler-room strangers and unsolicited recommendations of any kind
are usually worthless: if the target company were truly poised for greatness, what need would there be to solicit funds
from you? Insiders would be scrambling to lock up the shares for themselves.
2. Avoid Scams: If you’re aggressively being solicited to invest in a microcap stock, you may be the unwitting target of
a pump-and-dump scam. The pump-and-dump relies on the mass dissemination of positive spin about the company
and its prospects in an effort to create a whirlwind of interest in its stock, temporarily increasing trading volume to the
point where the share price increases; at this same increased share price, the originators of the hype and spin will
dump their shares into the market, sending the share price back down to where it began. In a classically-engineered
pump-and-dump, only the perpetrators make a profit. A modicum of research into the stock’s trading history, average
share price and average daily volume should be sufficient to determine whether a spike in volume is the result of a
pump-and-dump, or is evidence of a legitimate entity beginning to gain traction in the marketplace on its way toward
3. Do Your Research: Find out as much as you can about the company, its industry sector and trends, its products
and its growth prospects. Does it make sense that this company, in this industry, with these products and these
contracts should be on the verge of something big at this moment? Have they recently issued press releases
announcing new and profitable contracts, products, financings or joint ventures? Are they situated in a growing
industry with high value and room for healthy competition, such as pharmaceuticals or technology, or do they make
left-handed jump ropes and purple
suspenders? If the former is the case, then the chances that the opportunity is legitimate are certainly higher than if
4. Get In Smart and Get Out Smarter: If you decide to move forward, stay within your risk profile. Invest only in an
amount that you can afford to lose, and monitor your investment closely. Commit in advance to selling your stock
when the share price reaches a certain level, and resist the temptation to hang onto the stock longer in an effort to
increase your profits. Correspondingly, set a level below which you will absolutely sell the stock should it tank,
resisting the temptation to hang on until the share price “bounces back”. Remain unemotional.
There are plenty of legitimate opportunities to make good money investing in microcap stocks. Your best tools in
determining whether a microcap recommendation is real are your own common sense and sound reasoning abilities.
Use them to your fullest advantage so that you can sift through the hype and identify the right picks for you and your
portfolio. Visit http://7e3e3bzt3-hraof7o6t7i0gl86.hop.clickbank.net/ today to get the best advice
10 Tips for Buying Penny Stocks
Here, you will find 10 tips for buying penny stocks. The advice is based on the practical advice that comes from
investing in penny stocks for years and striking it big a couple times and the theoretical advice that comes from taking
economics courses and studying the trends within the penny stock market. Overall, the vast majority of penny stocks
are duds. After all, penny stocks are the cheapest stocks for a reason: penny stocks represent unproven businesses
that likely are lacking in many if not most or even all of the fundamental areas that justify placing an investment in
those stocks. Often times, penny stocks are the hardest to research and the hardest to justify even caring about.
Nonetheless, the attraction to penny stocks is justified. Investing just twenty dollars into a $.02 valued penny stock
will provide ample reward even after a mere increase to $.05, yielding a 150 increase in the value of one's initial
So let's get to it. Here is some advice:
1) Begin with a mindset and strategy that expects you will lose. Yes, this is counterintuitive, but also important,
because a not-so-careful investor will get stuck buying penny stocks based on the unrealistic expectation that some
value will come of the investment. Expect to lose and budget yourself accordingly, and stick with that budget. To
minimize your losses in the short- and long-term it is essential that you do not deviate from your budget, never
allowing yourself to invest more money into buying penny stocks than what you are willing to lose from the start.
2) Do whatever research you can into the stock and the associated industry. Penny stocks are often difficult to
research, because the stocks themselves represent companies that do not have enough capital to establish decent
public relations or human resources departments, let alone having enough capital create well-functioning websites.
Nonetheless, if you do find information - which you probably can, because there are lots of other penny stock
investors out there - you may learn what you need to know to strike it big.
3) Stick with the fundamentals. Penny stocks are notorious failures within the industry, because the fundamentals of
the stock are poor. The Price/Earnings Ratio (usually symbolized as P/E) should be low as should the overall amount
of accumulated debt, and there should be a clear plan and demonstrated achievement of profitability based on the
merit of the company. Tips for buying penny stocks are helpful, but it is useful to know that buying penny stocks
comes with the same risks as other stocks and the fundamentals mentioned above are absolutely and always
4) Choose an industry you know about. This is easy: if it is a company about designing laces for shoes, and you know
nothing about the industry, then you are already behind the competition. Pick a company that has to do with one of
your hobbies or interests. You will "read" those companies them better.
5) Take your time before buying a penny stock. There is no rush - more penny stocks will always appear, and you do
not have an obligation to dedicate yourself to one particular stock. Patience is critical here.
6) Ruthlessly cut your losses when buying penny stocks. This means that as the value of a stock begins to tank, you
want to get out of the investment as fast as possible. Penny stocks can often disappear completely, leaving you
blindsided as to where your money went.
7) Be shrewd regarding your winnings as well. If you made some money, grab your initial investment, and play
around with the rest if you so please; however, in general, penny stocks can quickly turn into losers, so you might be
better off just accepting that you will not hit the jackpot and are instead happy making a few bucks to take your
partner out to a nice dinner.
8) Constantly review the status of your penny stock. Some tips for buying penny stocks suggest that you pick a penny
stock that allows you to step away from the initial investment, depending on the quality of your initial decision. This is
a mistake in my opinion: stay on top of your investment, because a big win can turn into a big loss in just one
9) Constantly research your competitors within the industry of the penny stock you are buying. Remember, once you
buy stock, you are a partial owner of a company, which means that you also have competitors. More importantly
though, you share none of the real legal obligations of owning the company and should be constantly looking for the
bigger, better deal. If your competition is doing better than you are, then invest in your competition.
10) Have fun with penny stocks. Investing in penny stocks is like gambling. If you go into a casino with the
expectation that you will make money, then life is probably going to get difficult for you, because the casino is built so
that the house always wins in the end. With penny stocks, it is not a theoretical casino that is against you, but more
the natural laws of probability. So expect to lose-ride the waves of failure as well as success-and you may find your
rational, unemotional approach to investing will produce positive outcomes.
Good luck, and I hope you found these 10 tips for buying penny stocks helpful!
Penny Stock Prophet is a stock program dedicated to finding profitable penny stock symbol opportunities in the
market and informing you so that you can trade accordingly without having to devote any time to analytics yourself.
The concept of Penny Stock Prophet is very simple. They send an email that tells you about recent picks penny stock
and their results. This includes the predicted best stocks for today and also some great buy and sell pointers on stock
The buy point refers to the highest price you are willing to pay to purchase the stock. For instance, if it’s the case that
it tells you to purchase at $0.65 and below. That’s precisely what you would do. The lower the price you buy at, the
Sell point refers to the price point that you should sell the stock i.e. Sell at $3.00 and up. You would do exactly that. It
will sure make trick for the users. This is the way to make a decision under those circumstances. Sell the stock
immediately when it reaches $3, unless you want to take some additional risk. Alternatively, if you are more of a risk
taker, you may want to wait until it goes past that $3.00 and pray that it continues to increase and then sell when
What Is Penny Stock Prophet All About?
Penny Stock Prophet Newsletter is a lucrative newsletter style product where members receive the latest stock
alerts every week and updates on the very stocks traded by James each and every day. Predicting the behavior of
stocks and of the market is one of the main benefits of using such a penny stock product. The Penny Stock Prophet
claims there is no guessing with this membership.
The Story Of of James Connelly A.K.A. The Penny Stock Prophet
Article by Jeffrey Scott:
If you haven't yet heard of James Connelly, it's probably because he is more commonly known by his
nickname, "The Penny Stock Prophet," given to him by his peers due to his uncanny ability to discover
"breakout" penny stocks just days before they experience RECORD gains.
In the last 12 months, Connelly A.K.A "The Penny Stock Prophet" has become an internet sensation due
to his stock picking strategy, that has changed the lives of hundreds of his followers.
As a 19 year-old college student, Connelly excelled in his studies. In his own words, "School was just
something that always came naturally for me. It was too easy, and over time I just started to lose
interest. I wanted something different, I needed to find something else to challenge me. That's when I
decide to turn to trading stocks."
Connelly always had an interest in the stock market, even at a young age. When he was still a teenager,
Connelly's father taught him how to read charts, and quarterly earnings reports. "My dad even got me a
subscription to the Wall Street Journal for my 16th birthday, " says Connelly.
Having an understanding of the fundamentals of the market, at such a young age, was advantageous to
Connelly's eventual future as an investor. The prospect of riches, and the unlimited possibilities that the
stock market offered, soon began to recapture Connelly's imagination.
"The stock market to me was just a big puzzle. It fascinated me. I felt that if I could figure out the pieces
to that puzzle, I could develop a strategy that would give me a huge advantage over other traders," Says
Connelly, "I knew it would take a lot of trial and error, but I was convinced I could develop a method that
would give me an edge in finding the next breakout stock."
On a whim, Connelly opened his first trading account his freshman year in college. "Initially, it started off
has just a hobby. I wanted to learn the process, and start small. Once I figured out a strategy that could
win consistently, then it was time to turn it up a notch."
Connelly began like any other investor. Studying charts, utilizing resistance calculators, analyzing
financial reports, and re-learning the basic fundamentals of trading.
Connelly's hobby soon became an obsession as he began skipping his classes, preferring to spend the
majority of his time researching and trading stocks.
"I was making more money from my dorm room than most people make at their jobs, so I just figured
going to class was a waste of time. I was on to something, and I wanted to keep the momentum going."
To Connelly, spending the day trading was more exciting and satisfying than sitting in a classroom being
lectured. Eventually, college became an afterthought.
Over the next few months Connelly spent hours in his dorm room pouring over charts, analyzing trading
patterns, volume, resistance levels, and any other identifiable factors he could find to help him identify a
point when a stock was about to experience a bullish trading pattern.
Connelly was convinced that that winning stocks must have similarities, and that if those similarities
could be discovered, it would be the key to identifying breakout stocks before they happen.
"I felt certain that I could create a strategy that could identify a breakout stock, before it began to rally.
There had to be a signal, something that could be used as an identifier to 'red-flag' a stock that was
about to see a major move."
Connelly eventually discovered 4 key variables that he believed was the secret to identifying a
breakthrough stock. To this day Connelly has not released these variables to the public.
"I've been offered a lot of money to sell my strategy, but that's not going to happen. I want everyone to
have the opportunity to profit from my strategy, not just someone who will pay millions for it, and keep
it all to themselves."
What Connelly is willing to share with the public, is how identifying the Psychological Support Level (PSL)
of a given stock, is the key to his method being so successful.
"While the 4 variables I discovered are still a closely guarded secret, what's not a secret is how PSL can
be catalyst to finding breakout stocks. It is the 'match' that lights the fire." Connelly continues, "Most
people don't understand how incredibly important PSL is, in discovering under-valued stocks that are
about to skyrocket."
Psychological Support Level is nothing new in the trading world. It is the activity of human behavior that
can cause a stock to be sold at well below its actual worth. In fact, many investors believe PSL is one of
the most important factors in identifying under-valued stocks. However, just discovering undervalued
stocks is not enough.
Discovering the undervalued stocks that are about to move,
that's the hard part.
"I became interested in the possibility of creating a strategy that utilized PSL to identify and predict
human behavior and its influence on a winning stock," says Connelly. "I was certain if I could find a way
to combine this with the 4 key variables I discovered, I could greatly outpace the overall market, and see
rapid percentage gains in my portfolio."
Connelly believed that PSL was the "missing link" to creating a strategy that would maximize profits and
potential gains in the market.
PSL is currently used by mathematicians to predict and determine how human behavior affects
population growth, crime and even terrorism. It's called Psychometric Science, and its no longer science
fiction. So Connelly posed the ultimate question.
Why Not The Stock Market?
Connelly felt confident that PSL, combined with the 4 variables he had discovered, would prove to be
the missing piece of the puzzle that could help 'predict' a bullish trading pattern…. Before it Happens!
After months of trial and error, tweaking and testing his strategy; Connelly was successful in creating
what would eventually become one of the most popular and wildly successful stock picking strategies in
A strategy that when applied, could predict solid gains in the market 24 to 48 hours…before they
When Connelly tested his new stock picking strategy over a period of 30 days he experienced an average
gain of 28% on over 11 trades. For any other investor this would be a resounding success...
...but Connelly was not satisfied.
He had a better idea. Since PSL was going to be such a key factor in determining which stocks were
about to move, why not implement this strategy in a place that PSL plays the biggest role in discovering
The Micro-Cap Sector! A.K.A. Penny Stocks!
Because PSL plays such a huge role in the micro-cap sector, Connelly was convinced that if he switched
his strategy toward micro-cap stocks, he could achieve even greater gains than he could on the bigboard stocks. The Results Were Astounding!
Apr. 16, 2010 - Penny Stock Prophet is one of the only hot cheap stocks specific stock pickers on the
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a short period of time as I did when I first begin with it.
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