This post is about finding out what penny stocks to invest in. You are going to need some help with this process. I will give as much help here as I can. This is a serious problem. There are about 8,000 penny stocks. Which ones are the ones that can help you to make money?
I will tell you in a little while about three resources that can help you. They all give information about choosing stocks to invest in. They will help you to sort through the thousands of penny stocks to find ones you can trade and make money consistently.
What is a penny stock?
First let us define what is a penny stock. A penny stock has a price from a few cents up to $5 a share.
Why invest in penny stocks?
One of the big benefits of investing in penny stocks is the prices per share are low. This means it is affordable for a retiree or a person without a lot of money to invest. Traditional big company stocks can cost $1,000 a share or more.
Another big benefit of penny stocks is that they tend to move fast. This gives you the opportunity to make money quickly. That big company stock that is over $1,000 a share will may never double in price. On the other hand the penny stock could move from 10 cents per share to 20 cents very quickly. It could double in a few days or weeks.
What is the difference between trading and investing?
People investing in large company stocks are usually investing for the long term. They may use a buy and hold strategy for making money. This is not a very good strategy for the little guy or gal without a lot of money. Large institutions like to invest in large stocks.
With penny stocks the focus is on moving quickly and making profits in a few days or weeks. This is a good strategy for the little guy or gal. Large institutions usually avoid penny stocks. If they invested millions in a penny stock it would distort the price. It would drive the price much higher too quickly.
What Penny Stocks to Invest In
Where can you find penny stocks to invest in? I came across a great resource in Timothy Sykes. He has been making money consistently for 10 years in penny stocks. He has a newsletter online to help you find penny stocks to invest in. It is called the The Penny Stock Letter.
He also offers a course called the “The Complete Penny Stock Course: Learn How To Generate Profits Consistently By Trading Penny Stocks”. This is a 385 page course in penny stock trading. It is complete and easy to read. The chapters are short. There are questions at the end of each chapter. There are also summaries at the end of chapters. Sometimes there is homework to do. It is not bad and does help prepare you for trading in the future.
The Complete Penny Stock Course is available from Paradigm Press or from Amazon.
What About Stocks to Trade, the Ultimate Trading Tool
Stocks to Trade (STT) “is the brainchild of millionaire trader Timothy Sykes.” He wanted to develop a software trading tool that would be the ultimate trading tool for people trading penny stocks. He has done that in his second version.
Not a Get Rich Quick Scheme
This is definitely not a get rich quick scheme. There is some easy fun work involved. Anything of real value takes some effort. The more you learn the more you will earn. Expect to do some study and learn the secrets to earning consistently in penny stocks.
Education is a Key to Success
Reading the course and taking notes will put you ahead of 90% of all traders. Ninety percent of traders lose money. But you will not, if you have and use the course material. You want to unlock the secrets to success don’t you?
Experience is Another Key
Some things can only be learned from experience. This is why part of your training will be to practice trading without using real money. This experience will help you to get ready for real trading with real money. The more experience you have the better trader you will be. This experience before actual trading is a great idea. Do NOT skip this step.
Discipline is Important
Discipline is one of the most important things for traders. Learn the right steps and follow them every time. Do not try to take shortcuts. They will only slow you down. Discipline will help you make money faster.
Risk Management is the Key to Reducing Losses
There are risk management tools that will help you to cut your losses. You can cut them to the minimum with risk management. You can even cut them in half. Reducing losses can make a big difference in your final results. You may only have 60% to 70% winning trades. But with risk management you can increase you gains when you win and cut your losses when you lose. You can make a consistent profits with risk management.
How Much Can You Make Trading Penny Stocks?
Tim Sykes has learned from 10 years experience enough to make $4.8 million. He did it in 10 years. You probably won’t do that well in the beginning, but you could end up doing even better. Some of Tim’s students have made even more. Tim says he is conservative in his trading.
Stocks to Trade–What is it?
Stocks to trade is a real-time trading tool. Tim Sykes was trying to find the ultimate trading tool for all his needs. Nothing like it existed until one year of work and over a million dollars were spent developing it. Tim Sykes based it on his successful research strategies. It offers powerful tools for creating charts. It has scanners that work in real-time.There is also news filtered based on selected criteria. STT is an amazing tool for beginning and traders who are advanced. It can help you find stocks to trade based on your own criteria. For more details go to www.stockstotrade.com. There is a 14 day trial offer for only $7. This could help get you started without spending a lot of money
This post has given you three resources for helping you pick stocks to trade
First, there was the Penny Stock Letter. Then there was the Complete Penny Stock Course. Third, we have the Stocks To Trade platform for helping you find stocks to trade.
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