Automated Fortune from Penny Stocks

Invest Wisely in Penny Stocks to Trade Safely and Successfully

In recent times it has been noticed the world over that more and more investors are indulging in penny stocks because they
are tempting to buy and very lucrative to trade. As the very name suggests these micro stocks does not cost any more than few cents or pennies each. In fact as per the strict SEC guidelines these penny stocks cannot be traded above $5, that too over the counter or better still OTC and not on national stock exchanges such as NYSE, NASDAQ etc.

This trend in foraying into the penny stock markets the world over has especially been observed after large number of investors were shocked and aghast to see their hard earned money wipe off in matter of days after the stock markets crashed all of a sudden because of recession in the market and a weak dollar that failed to sustain the economy.

With very little funds anyone can enter into the money-spinning world of stock trading by venturing into the penny stock market. All that you as an investor would require is to prepare a list of top undervalued penny stocks that have great potential to perform well in a highly competitive and volatile market.

If you too wish to build your own penny stock fortunes then its prudent that you have a deeper understanding of all those market forces and various factors including human psychology that drives the market. These forces boost or negate each other as per circumstances and which in turn provides the requisite momentum to various penny stocks. Every day thousands of penny stocks rally hard with one another all day long with the hope to obtain better price for value for their investors. In doing so there are numerous risks involved since trading in micro stocks although lucrative are too volatile and unpredictable for the human mind to comprehend scientifically .

Its the exceedingly small price, mostly not more than few decimals in currency units, which makes these penny stocks so tempting to buy in large volume. Also the opportunity that any investor has in multiplying their gains in value many times over when the price of a penny stock that they bought for a song continues to climb the chart steeply that too in matter of days. As soon as it reaches a predetermined price threshold you can immediately book profit. In comparison large caps of blue chip companies that are traded on the national stock exchanges such as NASDAQ, NYSE etc. continues to remain sluggish most often although they are steady by nature.

Moreover for the price of one blue chip share that might say cost you $50 or $100, you can actually buy in very large volumes of few individual penny stocks that may have cost you few cents each. Now suppose there is a slight positive swing in the price percentage, you may actually double the amount invested in just few days. In fact its not surprising some very hot penny stocks actually fetching $200 for each dollar invested in a few weeks time.

To help you with your calculations, lets suppose you have invested $500 in micro stocks and everything goes well according to strategy, then you may end up gaining $500 x 200 = $100000 on your initial investment. On the contrary it will take years to fetch that much amount of money when investing in blue chips large cap stocks.

Trading in Penny stocks although lucrative is also risky, if you do not know the name of the game and the tricks of the trade. The market for micro or small stocks are highly volatile. One day the market is buoyant, the following day it can simply sink like the Titanic Ship, with everyone aboard, unless you know how to bail out and swim to safety. Its this volatility that gives momentum to penny stocks and hence like a skilled surfer learn to ride the waves.

You must remember that because penny stock prices are usually less than a dollar, hence trading is carried out in large volumes. Each day large volume of different shares change hands over the counter (OTC). Hence a slight percentage shift in demand or supply of a particular stock can determine the rise and fall in price depending on which side the market actually swings. So you must exercise caution and discretion when picking your stocks however less it's priced that makes them so tempting to buy in large numbers. I must warn you at the onset never to put all your eggs in the same basket, for who can tell which amongst the shares can drag the market down. Always spread your investment by diversifying your funds in four or five of the best stocks available having great potential to grow rapidly in the current market trend.  

Many retired and unemployed persons have reaped fortune from the penny stock market boom. I must still warn you that those who are at the fringe of retirement or who does not have a steady income may refrain from entering the choppy and unpredictable market for penny stocks lest you squander your family hard earned savings. It could perhaps because of an unintentional wrong decision and you may lose everything on a single day because you chose to go your own way.

I can only encourage those who are young and willing to learn without fear of loss. You may begin by exploring with a small fund say with only $500 to understand the nitty-gritty of online penny stock trading by taking baby steps initially before breaking into a run to finish with lot of fortune. Don't expect to become a millionaire overnight. For this you have to explore and understand this highly lucrative market, where it's possible for anyone to earn thousands in a single day, provided you learn how you can do that. There always has to be some method otherwise why should people enter this market if nobody was profiting from the risk and effort. But as they say higher you fly, the harder you may crash, in case you spin out of control and do not know how to parachute down to safety. But then greater the risks, greater is the reward if only you know how to swim with the tide.  

How a Broke College Dropout made One Million Dollars from Penny Stock Trading by Investing only $1000 in a Single Year?

Earlier one had to depend on the advice of professional traders and brokers to understand which way the market is likely to swing, what all stocks would perform well during the day and which are the ones that would slide down. However with the help of automated stock trading and stock analysis software, the one which brokers are using today, you too in the comfort of your home can trade online similarly. Now there are quite a few of this software available, but the one that I would recommend and which has fetched me my share of fortune too is the one developed by James Connelly. To me he has truly established himself as the prophet in penny stock trading.

His excellent stock market technical analysis and trading software is based on a complex algorithm that he developed while studying in MIT. The algorithm so developed is based on four important variables that he identified. He also discovered a mathematical anomaly that the probability for all twenty of the biggest winners in any year gives the same ratio i.e. 1 in 1,750,000,000! I do not wish to overwhelm you with mathematical details. All I think is suffice to tell you that this sophisticated software is based on a thorough understanding of statistics, computation and random processes. While developing he also took into account the human psychology level such as basic human instincts and Maslow's hierarchy of needs that determines the complex PSL factor, which plays an important role in pushing the market up or down, setting the trend for the day.   By using his own system James has since been able to make $1 million in just 38 trades in a single year that too with an initial investment of only $1000 and without leveraging by borrowing money.

All this he was able to do so with the help of his stock market technical analysis program that he had developed. What I really appreciate about him and his methods is that he actually invites you to literally look over his shoulder as you follow him each step while he instructs all the time when trading himself. His penny stock newsletters are excellent and rich with valuable advice on various forms of investment and penny stock alert, that's offered to the first 500 paid members and then passed on to all his free subscribers on a priority basis. In each of his alerts he mentions the "buy" and "sell" points that he identifies for each stock and recommends for trading. The difference from other "robot software" is that they only scan through a bunch of ticker symbols then chooses a stock symbol completely at random! It's totally fake! But the one that I am mentioning here on this lens is about a "live person" who actually helps you to pick your hot penny stocks each day. That what makes it stand out from such automated stock trading software, which works like a robot without a mind and human instincts of its own to guide you emotionally.

He also instructs on how and when to set limit orders, with the intention that all your orders in your trading account are executed automatically. That means its not necessary to keep staring on your computer monitor all the time at a stock ticker, waiting for the opportune moment to cash out. This is exactly like trading on autopilot, while you can spend time on other matters of importance.

All that his system demands from you is to keep pace with him while you literally trade alongside with him and do exactly the way he does and instructs. Once you pick the nitty gritty of trading, you too will be able to "fly solo" and use your own intelligence to carry forward your career in penny stock trading and investing.  

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