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How To Trade Penny Stocks And Win

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Hot Penny Stocks And What You Need To Know To Make Yourself Rich

As people get turned on to investing, they are finding that hot penny stocks are one of the most lucrative opportunities available. They require only a small investment and have the potential to return many times the initial amount. When done right, investors are often not surprised to see double, triple or even a ten-fold increase in their account from a single stock. The key is finding the right hot penny stocks. We will explore how you can do this, whether you are a novice or an expert, young or old.

Table of Contents

  1. What Are Penny Stocks Anyway?
  2. Advantages Of Penny Stocks
  3. How Hot Penny Stocks Can Work For You
  4. How Do You Find Hot Penny Stocks To Trade?
  6. Investing In Hot Penny Stocks Wisely
  7. How To Avoid Fraud When Researching Hot Penny Stocks
  8. Where Do I Get Legitimate Hot Penny Stock Picks?
  9. One of Michael's Personal Favorites!

What Are Penny Stocks Anyway?

You will hear many different definitions of but the one that is most commonly used is the definitions issued by the US Securities Exchange Commission.

They (and we) define it as a stock of a company that is trading under $5 per share.

The term "penny stock" has nothing to do with the size of the company or any other factors - only the price per share.

Advantages Of Penny Stocks

Why You Need To Invest In Hot Penny Stocks

Investing is all about percentages. This is probably the most referenced number when you hear somebody talking about their return on investment. Fund managers and investors are not interested in the fact that your stock gain a solid $10 per share in the past 3 years. If you bought the stock at $200 and it went up to $210, it was only a 5% return in 3 years - not very impressive. But if it was a $2 stock that went up to $12, then you made 600%!! Absolutely incredible!!

Now what if I told it was possible for you to get this kind of return? Well the good news is that it is! But you have to be very careful and do your due diligence before you buy. (Don't worry, we will tell you how to do all of this and how to get started!)

How Hot Penny Stocks Can Work For You

Why Percentages Matter Most

Now imagine you found a stock that was trading at $.25 per share (after you did all of your research and you knew it was a legitimate company that had great potential for growth) and you bought 1000 shares. Your total investment would be only $250.

Now say that you were right and this company really took off, like many of the solar companies did a couple of years ago for example. This stock may only go to $2.50 but your initial investment of $250 just became $2,500 - a 1000% return! But maybe this company is the next Microsoft or Intel and it goes to $25 per share - your $250 just became $25,000!!

This example may be a little extreme but it does a good job of illustrating why hot penny stocks are so popular. You can buy hundred or thousands of shares for very cheap and, if the company does really well, you can make hundreds or thousands over night or in just a few weeks.

The problem is that the great majority of these companies never take off but it is possible to find the best prospects to make this kind of return. And returns like this are only possible with penny stocks because of the fact that they are so cheap and have a lot of room to go up.

So how do you find the hot penny stocks with the best chance for explosive performance? That is covered in the next section...

How Do You Find Hot Penny Stocks To Trade?

Tactics For Finding Your Hot Penny Stock Picks

  1. Follow Industry News And Trends

    One of the most important things you can do it research where a particular industry is going. You will want to find an industry that is about to go through a major growth spurt. You will then want to zero in on the best companies within that category that have to best prospects for coming out ahead of the competition. Remember that if you are trying to research hot penny stocks in an industry that is already booming, the juiciest profits have already been taken.
  2. Keep Track Of The Companies You Are Following

    Watch the companies that you have narrowed it down to. Your list of hot penny stocks to follow should include no more than the top 10 organizations. If you track more than this, you will be overloaded with details and end up getting them confused.
  3. Learn More About The Companies

    Be sure you do all of the background research on each and every aspect of the company before you invest in your newest hot penny stock pick. Since many of the stocks will be less than $1 it can be tempting to not do your research but you must fight against this. Investing is all about percentages; a stock that goes from $.80 to $.40 may have only lost $.40 but you will have lost half your money. Know what you are investing in before you buy, especially since many of the hot penny stocks are not as strictly regulated as companies on the S&P 500.
  4. Make Sure The Business And The Management Team Is Solid

    You will want to see that the businesses behind the symbols on your hot penny stock list are performing and that they are able to innovate. The single best thing you, as an investor, can do is research the executive management team. Make sure they all have strong experience and a record of performance in their particular industry as well as the know how to run a business. If the company you are considering is smaller, you may even be able to contact them personally.
  5. Find A Reliable Stock Screener To Help Narrow Down Your List

    By using an online stock screener, you will be able to filter through the thousands of available investments and come up with a rough cut hot penny stock list for you to start with. You can search through lots of different criteria and keep only the ones you are interested in. There are many great stock screeners available but be sure yours is setup to scan for hot penny stocks as some do not have this feature.
  6. Subscribe To A Newsletter

    This is the best option for most people. There are investors who have become experts on how to invest in penny stocks. There is one thing you will notice that separates them from all the other people who lose money - they have a system. With a system, these experts are able to compile a list of hot penny stocks that have the best chance of performing well according to their criteria. It takes the guess work out that most people rely on and that most people end up making poor financial decisions with.

    These experts often publish newsletters where they detail their hot penny stock picks. Be aware that not all of their picks will be winners. What it does do, however, is greatly improve the odds that you will be able to make a lot of money fast and also makes all the research a lot easier.
  7. The Best Strategy

    Many people who subscribe to these hot penny stock newsletters combine the expert's research with their own. This ensures that they are comfortable risking their money because they know that it is a good decision based on the best information available.

    You will want to employ a similar strategy. By using the hot penny stock newsletter as a starting point and then doing your own digging, you will be able to find only the best investments that fit you.

Investing In Hot Penny Stocks Wisely

The Best Advice Of All

You have heard it before but it applies to researching and investing in hot penny stocks too - Never invest any money you cannot afford to lose. Investing does and always will involve the risk that you will get back less than you initially put in. The only way you can mitigate this risk is by not risking money you need and by doing all the background research first. Combining this with an expert's hot penny stock picks newsletter will also help to lessen the risk.

How To Avoid Fraud When Researching Hot Penny Stocks

You have heard the term "Buyer Beware" many times before and know by now that it can be applied to many areas of life. Investing in hot penny stocks is no different. The investing world is hit regularly by so-called "pump and dump" scams.

A "pump and dump" scam, especially with the advent of the internet and online trading, has become a fairly easy process. Whoever wishes to commit the fraud must frist buy a sizeable portion of penny stock shares, often tens of thousands of dollars if not more. They will then fill investing and hot penny stock forums with fake news about how this stock is sure to blast off overnight. Next, the will do the same thing using email lists and spam.

Newbie investors who do not know any better and who have not done their own research see all this free advice everywhere and begin buying to stock up. As more investors clime aboard, the share prices rises exponentially and the con artist who started the whole thing dumps all his shares. The fraudster takes away an enormous profit right at the top of the frenzy and the penny stock price, which was inflated because of all the hype, crashes to a fraction of what it was, leaving most people who bought with nothing.

The con artist literally pumped up the price on fake news and then dumped all his shares to make a huge amount of money. Everyone else has no idea and holds their shares until they crash to almost nothing.

So how do you avoid becoming a victim of fraud? Well, it is simple when you know what to do and what to look out for.
  1. Always Do Your Own Research

    WIth the growth of the internet, this has become fairly simple. Always make sure the company who's hot penny stock you want to invest in is real and has a great business model with experienced managers.
  2. Subscribe To A Legitimate Newsletter

    This will help you avoid the fake news used by fraudsters that many new investors fall victim to as they search for the new hot penny stocks.
  3. NEVER Take Free Advice From Someone You Don't Trust

    If you see a forum post or get an email hyping a hot new penny stock that sure to make you a multimillionaire, ignore it. You will only be another victim and will lose most, if not all, of your invested money

Where Do I Get Legitimate Hot Penny Stock Picks?

The Best Newletter Available

Remember about how we talked about the importance of having an investment system? Well Michael Cohen has developed perhaps the best system of all to invest in hot penny stocks.

Michael is the owner of a newsletter called Doubling Stocks. He has actually created a stock trading robot named "Marl" that is based on his investment system. To give you an idea how valuable this system really is, you can buy a license for it for a mere $28,000. This does include a week of personal training by Michael but you get the idea.

Your other option is to subscribe to the Doubling Stocks newsletter which is sent out every Sunday before the markets open on Monday morning. When the markets do open, you can place your trade and let the stock go to work. Check back on it soon and you may be pleasantly surprised to see that you have made from 100% to 500% back on your initial investment.

Since the Doubling Stocks newsletter started, Marl has picked hot penny stocks that have made an average return of 105.28%. Here are some example of the recommendations you could of had available to you if you were a subscriber:

1. BioStem Inc. (BTEM.OB) $0.46 (March 2007) $2.34 (March 2007) 408%

2. LANTIS LASER INC (LLSR.PK) $0.49 (April 2007) $0.42(May 2007) -14%

3. SUPERCLICK INC (SPCK.OB) $0.11 (May 2007) $0.24(June 2007) 118%

4. HOLLOMAN ENERGY CORP (HENC.OB) $1.52 (July 2007) $1.95 (July 2007) 28.28%

5. INTL OIL & GAS NEW (IOGH.PK) $0.14 (July 2007) $0.11 (July 2007) -21%

6. Voyager Petroleum, Inc. (VYGO.OB) $0.06 (October 2007) $0.08 (October 2007) 33%

7. NATURALLY IOWA INC (NLIA.PK) $0.21 (October 2007) $0.40 (October 2007) 90%

8. Tara Gold Resources (TRGD.PK) $0.48 (October 2007) $0.80 (October 2007) 71%

9. Idglobal Corp (IDGJ) $0.12 (January 2008) $0.31 (January 2008) 158%

10. Exact Energy Resources Inc (EXER) $0.45 (January 2008) $0.33 (January 2008) -26%

11. Material Technologies Inc (MTTG) $0.58 (January 2008) $1.01 (January 2008) 74%

12. China Health Resources Inc (CHRI) 0.085 (February 2008) $0.20 (February 2008) 135%

13. Eternal Image Inc (ETNL) $0.032 (March 2008) $0.047 (March 2008) 47%

As you can see, these are some very impressive results. Obviously there are going to be some picks that turn out to be losers but that is the nature of investing. What Marl does do for you is give you many, many more winners than losers. The winners will greatly outweigh the losers and you will be a lot richer because of it.

Marl was created by Michael Cohen along with renowned fund manager, Carl Jenkins. Both of them are very experienced investors and are absolutely great for allowing the rest of us access to such an amazing trading system. We highly recommend that you check out Doubling Stocks today. They are only allowing a very limited number of people to sign up so be sure you get your chance before it is too late.

One more thing worth mentioning - this is all at no risk to you whatsoever. If you decide you want to cancel within the first 8 weeks, you will get a 100% refund! That's right, you get an unconditional 8 week money back guarantee.

One of Michael's Personal Favorites!


Visit Doubling Stocks Now!

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Combing the Doubling Stocks newsletter and your own research, you will have very good chances of making HUGE profits investing in hot penny stocks

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Bear2727

Hi there! How are you? My real name is Eric Wells. I spend much of my time writing about my interests and try to bring you only the best of the best. There... more »

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