Is it possible to amass large profits by trading penny stocks?The answer to this question is an unequivocal yes.
Trading penny stocks can be used to create large profits.
Let's analyze why this is.
In traditional investing, investors would be ecstatic if they achieve a 10% yearly return on their money.
This is because they are investors.
They believe in a company's long term prospect for success.
They have committed their money to a stock that they will possibly be in for years.
This is a major difference between investing and penny stock trading.
In penny stock trading, we do not necessarily believe in the long term viability of a particular company and we definitely do not have plans to hold the stock for years.
In fact, it is our hope to get out as soon as possible.
I must clarify that when speaking of penny stocks I am referring to any stock trading at less than $5.
I never trade stocks that actually trade less than a penny.
In fact, I have never purchased a stock that trade under 30 cents.
Penny stock offer great potential for profit because they can and do make large percentage moves quite often.
It is not surprising to see a penny stock double or even triple its share price in only a few days.
Ten, twenty and even thirty percent moves can happen with great regularity.
While some investors look for ten percent yearly returns you might be able to achieve that on a monthly basis by trading penny stocks.
I am not necessarily advocating that you invest all of your available resources in penny stocks but I think it makes a great deal of sense to trade at least a portion of your accounts.
It can potentially add a great amount to your bottom line.
Buy and hold may work well in a bill market but in every other market it will suffer.
Actively trading allows you to take advantage of temporary price moves.
Trading penny stocks can be used to create large profits.
Let's analyze why this is.
In traditional investing, investors would be ecstatic if they achieve a 10% yearly return on their money.
This is because they are investors.
They believe in a company's long term prospect for success.
They have committed their money to a stock that they will possibly be in for years.
This is a major difference between investing and penny stock trading.
In penny stock trading, we do not necessarily believe in the long term viability of a particular company and we definitely do not have plans to hold the stock for years.
In fact, it is our hope to get out as soon as possible.
I must clarify that when speaking of penny stocks I am referring to any stock trading at less than $5.
I never trade stocks that actually trade less than a penny.
In fact, I have never purchased a stock that trade under 30 cents.
Penny stock offer great potential for profit because they can and do make large percentage moves quite often.
It is not surprising to see a penny stock double or even triple its share price in only a few days.
Ten, twenty and even thirty percent moves can happen with great regularity.
While some investors look for ten percent yearly returns you might be able to achieve that on a monthly basis by trading penny stocks.
I am not necessarily advocating that you invest all of your available resources in penny stocks but I think it makes a great deal of sense to trade at least a portion of your accounts.
It can potentially add a great amount to your bottom line.
Buy and hold may work well in a bill market but in every other market it will suffer.
Actively trading allows you to take advantage of temporary price moves.
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