Monday, February 1, 2010

How to Trade Penny Stocks

Hello Everyone!

I hope everyone is having a great day so far.


Trading Penny Stocks Can Change Your Life



What is a Penny Stock


A Penny Stock is usually described as a stock less than $5.00 per share, but most of them that we will be involved with are below $2.00.
Invest in Penny Stocks?

Why

The answer to this is simple: (1) They are Volatile. (2) They are HEAVILY Promoted. (3) Profits are HUGE!


Google (GOOG) is currently at $580.00 per share. Do you think it is easier for a $580 stock to double or a .05 cent stock to double? Of course it is the .05 cent stock. These gains occur Every Single Day that the Market is open. Every day stocks are traded there are Penny Stocks that Double. I have NEVER seen a stock over $100 double in a day! Once again; this is a daily occurrance with Penny Stocks. Now that you know this; you have to know which ones are about to move. You need the Pre-Premoted Stocks, the ones that are about to be promoted by several promoters in the same day.



The Question is which ones and How do I get in BEFORE they Double?



That is the Question of the Century. You can spend days, months or however long you desire to research them, but this really will not help you much in picking the ones that move in ONE DAY. That my friends is the way that myself and many others make Good Money each and every day. The KEY is to know what others do NOT know prior to when they discover the news. You must be Positioned in the stock prior to the CROWDS that will follow and that is how you make the Big Bucks Consistently. You can subscribe to all the Free Newsletters and Alerts, but you still will not be on the "Inside". You have to be Positioned in the Stock BEFORE all of these newsletters email there daily alerts. Let me tell you that it is a good feeling to know that you have the inside scoop and know that Tens of Thousands of Emails will be sent out Promoting (Advertising) the stock that you already OWN! There is no better Feeling. What you are about to learn could dramtically change your life. IF, and that is a Big IF, you chose to act on it. You gain nothing in life sitting on the sidelines doing nothing; as the Garth Brooks song goes "Standing Outside the Fire". You need to be in it to Win it!




How do I discover stocks that move up as much as 100% or higher in a day?




I personally subscribe to a variety of Promoters and a variety of people have the "Inside Scoop" to purchasing stocks prior to the crowd---so to speak. It really helps if you receive information an entire day before it is distributed freely to Tens of Thousands of Subscribers to FREE Alerts and Newsletters. You have to Get the News Before the News. If you don't know the News, Prior to the Major Release of the News, you could lose a lot of money and will be holding a stock you don't want to be holding...you were essentially forced to hold or forced to sell for a big loss. These are the ones that usually; after the trading day are holding the bag....in the trading world they are called "Bag Holders" because they missed the boat and did not sell soon enough; so essentially they are stuck. Have you ever been in this situation? I have but I have Learned Sooo Much and it is not only what you know but who you know or who you are associated with. At the end of this blog you will have the opportunity to be associated with the same people I am; and may I say it is WELL WORTH IT!!!



How do I prevent myself from being a "Bag Holder"?



It is really simple. You subscribe to Pay Subscriptions VS Free Newsletters. There are literally thousands of new traders each and ever day that sign up on these FREE Alert Newsletters and what they don't know is that they receive the Trading Alearts "LATE", so all of the Paid Subscribers to Stock Trading Alerts are already positioned in that particular stock that the Freebies are just now receiving .



What does this mean?



It means that you can count on a lot them investing to make you money...so you can easily sell your shares for a profit. The Volume will be high in case you have made a high purchase of let's say 50,000 shares----pending on specific price of stock.....Let's say that the stock is at .01 cents; then selling 50,000 shares after the Free FREEBIE Alerts should be justified.



Do You Desire to Make Consistent Money Everyday Trading Penny Stocks?



If you desire to consistently make 10%---20%---sometimes over 100% in one day, yes that is stocks that Double in a Day; you HAVE to PAY for the Real Time Alerts. You must have the information BEFORE everyone else! I personally have done my research and have the best ones that will make you money! Actually I have more to come for you that I have heard are GREAT ones also.



Have you ever heard this famous saying: "Buy the Rumor and Sell the News" This is exactly the type of information you will have access to . In fact in many cases you receive the Real Time Penny Stock Alerts before the actual companies release the news; not to mention before the Freebies receive their alerts....by this time you should have easily found a position in this particular stock or in many cases stocks.



What do you do from here? You first wait for the all of the Free Penny Stock Alerts to come out; usually released After Hours of a trading day. Second you wait for the company to release "Positive News"---How do I know this will occur? Because I have been doing this for over Ten Years and know the pattern. The Promoters of the particular stock already Know that the company is realeasing News; not only do they know, they know exactly what the news is and when it will be released, that is why you Paid for these alerts....to get in BEFORE the release of positive news. The news is sometimes released prior to market open and sometimes it is released about an hour or two after the market has opened....to put "Gas on the Fire" so to speak to increase purchasing of the stock. I hope you all are understanding the absolute importance of what I am saying here.



Why should I pay for a Subscription to receive Stock Alerts? Many of them in REAL TIME!


Because MOST do not! You will be "Inside the Fire". You will be invested prior to all of those who do not pay and there are tens of thousands and in some cases according to my research Hundreds of Thousands that receive these Free Stock Alerts...and many of them invest.





Have you ever heard of the saying "There is No Business Like Show Business?" I have developed my own saying: "There is No Business Like Your Own Business!" Why do I say this? Because once you begin you will essentially own your own business.



Now I want to talk a little bit about "PROFIT TAKING". This is Very Important.


How do I know when to sell a stock?


Well; assuming you have Paid for a Subscription and you are now ready to recieve information only a privileged few have you need a Trading PLAN. Some subscriptions will give you entry and exit strategies; but it is wise to have always have your own plan and strategy for each trade.


Before you make any trade do this:

(1) Make sure you have a plan. I write mine down most of the time.

A. Know what your target is. Can be price or percentage..but ALWAYS have a target price in mind; especially for day trades; which in this case will be Most of the trades you will receive.

B. Know if you are you in for a day, a week, a month, 3 months or longer.

C. Are you in for specific % gain. If this is the case have a trailing stop in place for about 1/2 of what your target % gain is. I personally am very content with a 10% to 15% gain per trade. **Remember: Banks only pay about 2% a year and you should be making 10% a trade! ***Remember this: DON'T GET GREEDY!!! Trading these stocks are Volatile and can go down even faster than they go up. As I briefly stated above I usually trade once the news is released when the volume is HIGH, so I can liquidate my position easily. ****TIP: Make trades that are easy to liquidate; for example, I usually purchase 5,000 to 15,000 shares. Why? Because MM's (Market Makers) usually trade between 2,500 shares and 5,000 shares at a time. So make it easy to sell in a hurry. Quick trades are usually Good trades; when trading on news and escalating volume.

D. Are you a Volume player. If so study the history of Volume and on a rally when Vol slows the PPS decreases...that is an indicator to get out.

(2) Ask yourself some questions:

A. Can you afford to lose 50% of your investment and be comfortable with this? If not; decrease amount of investment because this is a penny and all penny's are volatile. Sometimes a penny stock goes down so quickly that there is no way your trailing stop will be guaranteed.

B. What am I going to do if the stock retracts 50% from my investment and I don‘t have a stop? Am I going to sell, hold, or accumulate?

C. What if the PPS goes up? What % am I going to sell...what is my goal for investing in this stock. As stated above my target is between 10% and 15% a trade...DO NOT GET GREEDY! BIG TIP: Once I purchase a stock I most frequently place a Sell Stop Order for 10% below purchase price. For example: Let's say I purchased 100 Shares of Stock ABC for .50 cents a share....I would immediately place a Stop Sell Order for .45 cents per share. Just in case the stock does not go up as speculated. There is NEVER a SURE BET. Yes, sometimes even with a heavily promoted stock it will head down; BUT in my case as I have done this for over Ten Years, almost 90% of the ones I have the inside scoop I will make $$$ on. Who can say that; besides the Smart Ones who have Paid for a Quality Paid Trading Alert Subscription?

(3) Know why you invested in this particular stock and this will definitely aid in answering the above q's.
A. Am I investing due to the inside expected Promotion or the expected hype that this particular stock is supposed to receive? If so you are a momentum player; so be at your pc and know how to play it. Price can go up fast but down much faster! ***HUGE TIP: I Personally am in most of my trades for Less Than 3 Hours and many Less than 20 Minutes. But this is how you make the Quick Profits, the Quick Cash. This all depends on the information you recieve from your Paid Stock Subscription Alerts and also what your Pre-Target Profit Percentage is; as talked about previously.

B. Am I investing because I believe in this company's objectives and am willing to give them my hard earned money to help them grow? If so;you have done your DD and have established a high degree of confidence in the company not the company's PPS. Yes, pps is what will ultimately make you money, but knowing your company and management is mandatory. This is generally for a longer term investment; mainly more than a week, not a day trade. Sometimes you will receive long term Stock Pick Trading Alerts from you Paid Stock Subscriptions.

(4) Do NOT invest on Emotion. Emotion will hinder all of your plans on why you originally made the investment and before you know it you are confounded, and most likely will make a mistake(s).

(5) Know how much to invest: How? Depends on if you are in for long term or short term. Obviously short term you will need to know your expected volume and if you will be able to immediately liquidate---You should get an indication from expected promotions. Long term: you can invest more and can liquidate periodically.

The main point is to have a Plan on every trade you make and eventually this will become habitual. Learn from your mistakes; I personally write mine down so I don't forget them because in the past I found myself making the same damn mistakes repeatedly...and by all means I make them every trade in some way, shape or form. You very seldom make a perfect trade, but if you take the time and reflect you will become a better trader. A Perfect Day Trade would be buying at it's lowest price per share and selling at it's highest price per share. I have only done this once in my trading career! So if you do this; you are LUCKY!


If one part of your plan goes wrong it can have the domino effect and just mess every other aspect of it. So have a Plan B if Plan A goes array.



How Do I Get Started Trading Penny Stocks and Making Consistent PROFITS?


Getting Started: How should I begin once I begin receiving my Stock Trading Alerts from my Paid Subscription(s)?


Well; my advice is not to invest at first. Do some Paper Trades---Place what you were thinking on a peice of paper and see how it goes. Follow you plan as your plan will become habitual. You can learn a lot by observing for a week or two and see how it all works. I guarantee you it will be FUN and EXCITING!



ARE YOU READY???


Ok, Are You Ready? Some of the Quality Paid Subscription Trading Alert Sites are listed below: My Advice is to do your personal DD (Due Diligence) on all of them and pick one that you believe would fit you best. You are sooo close to being on your way to Financial Freedom; but you cannot do it standing on the sidelines. ***Remember it is really not What you Know, but more Importantly WHO YOU KNOW! Here is YOUR chance.


P.S. If you need information on my favorite Trading Site that provides a great service and is a heck of a lot less expensive than Etrade or Ameritrade or Even ScotTrade....then send me an email at jdlinke@yahoo.com with "Trading Site Information" and ask your question and I will reply with this valuable information that will save you BIG $$$!



P.S.S. You owe it to YOURSELF to at the very LEAST look through these as they WILL make you money. Be on the Winning side of a Trade. You have no excuse, all the information you need to be successful is here...and then some. Once you are successful and get a rhythm to making these winning trades, choose another one. Each one provides you with a variety of unique trading alert opportunities. Once you purchase and begin trading send me an email if you have any questions regarding how to trade your alerts at jdlinke@yahoo.com and I will inform you more how I trade alerts. Just don't get Greedy and over Zealous as this is what will burn you. One step at a time and you will have more money in your account than you can imagine. Take it slow at first and re-read this blog a few times on taking the 10% to 15% profits. You can; No, You WILL do it! Congrats.

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#1. How a College Dropout Turned $1,000 into $1 Million. Trade Alerts that make you money; Guaranteed! Try it; if you don't like it get your money back, but I have a strong feeling that it could pay for itself within the first couple of trades..even for beginners!
How a College Dropout Turned $1,000 into $1 Million. This can be accomplished with less than 100 Trades. Get his Alerts Now! A Must have for ALL Penny Investors…get on the inside

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#2. ***L@@K at the Testimonials; just because this is listed second doesn't mean it isn't my favorite. Penny Alerts you cannot Survive without! Watch the Videos. A LIFETIME MEMBERSHIP on this one that you very possibly could or "should" make double on your first trade..to pay for a lifetime Alert membership. These PRE-News Alerts are invaluable!

Roys Best Penny Alerts. Get in before the Crowds

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#3. ***CHECK OUT THIS GUYS ETRADE ACCOUNT! Go with the Flow...Discover the stocks that will fly. Scroll to the Bottom of the Page to see Etrade Account. Read the Testimonials. Are you Ready??
Go with the Flow!

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Here are some more Subscriptions to review: Coming Soon as I am evaluating, analyzing and reviewing..stay tuned. More info coming as I am trying some out for a month or two.


If you are dealing with Penny Stocks it is very difficult to be successful on your own. Remember this; if nothing else, "It's not what you know, but more importantly WHO you know!" You now have some great leads to get your butt started making good money every single trading day. Good Luck to you and Great Trading!

Check out our other Posts:
1. Why Buy GNVC?
2. Expect GNVC to head to $3 to $5.
3. Trading Penny Stocks Can Change Your Life
4. Is Kraig Biocraft Laboratories (KBLB) Worth Buying?

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