Hey everyone, welcome to another blog from My Journey To The millions! We will be going through penny stocks and how to learn to profit from them. We have a few different strategy's you can learn to profit if you choose to use this as an extra source of income
Is there opportunity in penny stocks? A lot of people have lost quite a bit of money in this type of investment, but is their still opportunity? Of course. 90% of stock traders are loser, which is a similar statistic as anything else that you can be successful at. Penny stocks have big risk, but have huge reward, so how can you be one of the top 10% that get that huge reward? Education. One way I have made some successful trades is by technical trading. By learning this technique, you can learn when to buy and sell for a quick flip. If you know what your doing, this reduces quite a bit of risk. Another way you can see potential reward in a company is by learning how to read financial statements. If you can do this properly, which is an education I have yet to learn, you can find earning winners and power growth companies and hold on to them for a few months, or year. If you can read the financial's, and know the management is good, you can profit greatly. Another way is learning how to predict trends. You can find up trending stocks that you can hold for a few days, weeks or even months using technical trading skills. You can also use trends to track what industry's will be starting to turn around. For example, right now, silver is in more demand each year from different types of industry use having to do with technology. If the demand keeps going up, than prices will continue going up. I would not suspect 2011 was the last time we will see $50 silver. I can predict, we could hit that level again in 2-3 years. If the economy booms, silver demand goes up. If the economy crashes, its like gold. It becomes an investor safe haven. Price once again, goes up. My favourite thing about where the price of silver topped is its same high as back in the early 80's. That's a double top, so it offers a lot of potential when the dam comes it breaks that high. That is a trend you can use to predict what industry's will go up. Silver prices will bring up all company's mining silver, or perhaps even company's that do some sort of business with silver company's, or own silver mines. To start profiting from penny stocks, I suggest you begin educating yourself on one or more of these strategy's. Don't put all your money at risk at first, you want to be educated before you put it all at risk. Reduce your risk first by learning as much as possible but still take action by perhaps using a small amount or demo account. You can also find a stock broker who is professional at this. Not all stock brokers are going to be a professional at this though! Ask them if they invest in stock themselves or is that nice car they are driving paid by your commission. Ask to speak to other satisfied clients so you can learn what to expect. The more educated you are, the more you know if they are good at what they do when you ask questions. Using a stock broker as leverage to save you time is smart, even if you are educated and know how to choose your stocks yourself. Stock brokers may know of stocks being pumped up for whatever reason. The book rampaging bull is a book that you can learn a bit about pump and dumps. Timothy syke's is where you can learn about technical trading, he has a lot of free youtube video's and you can learn lots of the web about technical trading for free.
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