Learning How To Invest In Penny Stocks without guidance, is akin to walking through a minefield without knowing where to step.

With a proper map (or strategy) an investor can easily reach the other side unscathed and successful.  Without that guidance, you’re asking for problems.

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Just as the marathon runner prepares by training their mind and body, so too must the penny stock investor prepare with knowledge, nd information.  This podcast is to commemorate being accepted into itunes, if you’ve found us there, or would like to add us, the itunes url is…

http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=304039747

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While it’s true that in some cases penny stocks have received a bad rep (boiler room stock promoters), it’s also true a tremendous amount of money can be garnered, very quickly, often within hours of the stock being issued.

There are all many types of risk takers, those who sky-dive, bungee jump, race cars, climb mountains, and YES… invest in the stock market.  Let me state emphatically that I’m not a risk taker in the stock market!  That’s because I don’t believe penny stocks are risky, not if you have the right information.

Okay, let’s use sky-diving as an example, do you consider it risky?  I know my mom did years ago when I told her I was getting ready to try the sport.  But when I explained the amount of training, preparation and attention to safety that went into each sky-dive, she (reluctantly) agreed, then walked off mumbling to herself.

How does this relate to penny stocks?  Simply this, I make my living in the penny stock industry and while I enjoy an element of risk in some of my hobbies (sky-diving, supercross, flying) when it comes to money, I’m heads up conservative and safety conscious.  No one would call me Scrooge, I certainly don’t have the first dollar I made and around the holidays, I’m right there with good cheer and gifts.

Now let me define what I mean by conservative and safe, since from my point of view, penny stocks fit perfectly in that definition.  While my parents put all their investments in blue chips, mutual funds and CDs, that wasn’t for me (I softened up a bit over the years), since I wanted my nest egg to grow quicker and I didn’t feel the interest paid on a CD made any sense, nor was I comfortable waiting 20 plus years to make my first million.

Penny stocks have a tremendous upside potential, but even with the possibilities of substantial returns; many investors run the other way.  It simply doesn’t make sense, not when those supposedly safe mutual funds are down 30% or more (there are some exceptions).  It nearly wiped out my parent’s nest egg plus some close friends, their retirement plans are delayed multiple, multiple years.

That’s not for me and I can’t in all good conscience recommend that course of action to family, friends or my members here at WhisperFromWallStreet.com

Does that mean I’m against mutual funds?  No it doesn’t, it means I’m pro diversification and NEVER, not with funds, blue chips, or penny stocks do I recommend putting all your eggs in one basket.  Penny stocks may be new companies but let’s take for example one of those companies.

Usana Health Sciences came on the market at $1.30, a true penny pick; it traded in the $50s and as this article is written the stock closed at…

23.03  -0.18     -0.78%

as of 04:00 PM EST on 02/02/2009 in USD

Obviously that is one of the winners, and had you gotten in the right time (which is where our newsletter comes in) you’d have had the opportunity to achieve wealth.  Am I recommending you buy it today?  Today it’s not a penny stock and there is plenty of main stream information available.

Did we, or would we ever recommend you sell the house, mortgage the kids, and dump it all on a company like the example above.  Emphatically NO!  That never has been or will be a WhisperFromWallstreet policy.  We believe in diversification and never putting all your eggs into one basket.  Each and every day there are new offerings hitting the street, and if you miss the Usana of today, there will be another opportunity down the line.

Bide your time, manage your investment capital and be ready to move when we give a stock alert. And when we do, use common sense in how many shares you buy and when you plan to exit your position.  Sure it would have been great to buy Usana at $1.30 then ride it to $50+, but that is not recommended.  Better to double your money, salt away a percentage, then wait for the next train to leave the station.