Penny Stocks For Dummies The Road To Wealthy

This is an expansion on a recent podcast which can be heard at…

http://podcast.com/show/120866/

Several of our listeners asked how they could know when a particular company was getting ready to run.  Meaning why would “Company A” make a strong upwards move, while “Company B” would sit on the sidelines under performing at best.

The answer isn’t difficult or involved; it simply called “Stock Promotion”.  Let me give a little background on my experience and methods of picking penny stocks so you’ll understand how and why we’ll mention a particular company when we send out an alert.

The stock market, and in particular, the penny market has long been a fascination, eventually leading to the creation of this website.  I knew there were many of my associates making thousands (often hundreds of thousands) in the over-the-counter market, while others (including myself) seemed to lose on every trade.  I was determined to find out if there was a hidden key (there is) or whether these friends of mine were simply lucky.

What I learned over a period of months (which would become years) can allow you to quickly, almost effortlessly profit from the penny (over the counter) market.

To start with I gorged myself on market info setting out to learn everything I could, digesting books, scouring articles, watching CNN, Mad Money and subscribing to The Wall Street Journal.

When beginning my exhaustive research on the stock market I noticed several things. At first I focused on the big stocks since these were being talked about on news shows, the journal, etc.  Basically I felt comfortable buying these.  However it didn’t take long to figure out that as a small investor buying a few shares that went from 50 to 55, 20 to 23 or 100 to 107 it was going to take a lifetime to build a decent sized nest egg.

While I was initially focused on the biggies, I was noticing that the daily % gainers on the OTC-BB and pinksheets were often 15%, 25% 50% in a single day!  I knew this was the area I needed to explore and really dug in hard on the research.

I understood the logic: it’s much easier for a .10 cent stock to go to .20 cents or a .01 cent stock to go to .02 but wanted to find out why there were always big gainers every week.

I began to buy penny stocks using fundamental and technical analysis but that didn’t seem to be the key. They just seemed to sit with little activity and I couldn’t figure why my stocks seemed perfect technically, but still they wouldn’t move.

It was frustrating because I continued to see other stocks making huge gains on the % gainers lists. I would look at these companies and think “there’s nothing special about this company, the charts didn’t look that great”, yet some would take off like rockets.

Later out of pure frustration I began to join multiple online stock newsletters to see if I could learn the secret. I began receiving tips and shortly a pattern began to emerge.  When certain newsletters came out with their picks the stocks sometimes made HUGE gains in a single day. These were the stocks that ended up on the gainers list every day.

I began pouring through these companies’ charts and financials striving to find anything in common that would shed some light on my dilemma, “why did these stocks run while mine idled on the sidelines”?

In the end the only thing they had in common was they were all mentioned in online newsletters and penny stock websites.  I thought, “Surely that can’t be it, there must be more”.

I put together a spread sheet and began tracking the newsletters, their picks and performance of the stock.  I was astonished at what I learned over the next 6 months, a select group of newsletters picked winners time after time, while others picked stocks that didn’t do anything or went straight down the tubes.

As I learned more I noticed these newsletters took fees from the companies they mentioned for advertising a particular company. This is when I began to learn about “Stock Promotion” and which newsletters had the power and which to shy away from. Soon I began talking to the newsletter writers and the rest as they say, the rest is history.

My strategy became to follow the strongest newsletters and promotional firms and buy their recommendations as quick as I could after receiving an alert, knowing most would climb rapidly.

Over time this strategy proved itself over and over. I’d found my trading niche and would continue to perfect it. What has taken years to perfect is what we now offer you free by signing up now for our free alerts.