How to be a Penny Stock Trading Master

This short but sweet guide will be the key that unlocks the door to unimaginable penny stock profits. Let me show you how to make the most of hot penny stocks and how to capture profits of hundreds or even thousands of percent in a single day.

To master the art of penny stock trading, there are three keys. First you will need to understand the nature of penny stocks. Second you will need to develop a trading strategy. Lastly, you will need to find the right penny stock picks so you may execute your strategy.

Let’s talk about the nature of penny stock. The master understands the wild nature of penny stocks, and how their behavior is very unlike the stocks you may have known before. I would compare a NYSE stock to a cow on a farm, and a penny stock to a wild bull.

In order to be successful, you must understand that penny stocks move around very rapidly, especially hot penny stocks. They can make gains within minutes that can be in the hundreds of percent, or sometimes even more. If a stock is one cent, a sudden rush of buying can propel it to five cents, making your initial investment worth five times as much.

Obviously that’s amazing and wonderful, but the reason that only true masters repeatedly are able to capture gains on the penny stock market is they understand that gains disappear as quickly as they appear. Greed can make big gains turn into small ones, or even losses. Greed is not being satisfied and holding on too long or holding out for huge gains when you already have very large ones.

Timing is everything. Knowing when to get in, and just as importantly, when to get out. Master traders are often in and out of trades very quickly, within days, hours, or sometimes even minutes.

The next key is developing a strategy. Masters often base their strategies on the principle I mentioned above. Even after receiving the best hot penny stock picks a trader can possibly receive, if the trader enters and exits at the wrong time they can actually take a loss. How you develop your strategy is up to you and/or your licensed financial advisor. However, it would be wise to remember that most masters are in and out of trades very quickly. The longer you hold on, the greater your risk.

If a master buys a five cent stock and believes it will hit ten cents, the master often will not wait to sell at ten cents. That would be greedy and increase risk. The master often will sell at eight or nine cents, because holding out for the maximum gain is far too risky. Amateurs strive to hit home runs, masters are content to hit singles over and over.

Lastly, make sure you get the best penny stock picks. Hot penny stock picks are the fuel that you need to reach your goals. Try signing up for a penny stock newsletter like this one, www.pennystockalerts.com. There are a lot of good penny stock newsletters but I think they have the best track record.

With the right penny stock picks, the right strategy and understanding of penny stocks…plus a lot of training, you can make enormous life changing profits. Use discipline, focus, and never give up. To become a master takes time and dedication. It is a challenging path to walk, but the rewards are amazing.

Author writes about free penny stock alerts and penny stock. To get more information on penny stock chaser, penny-stock-picks, hot penny stock picks and hot penny stocks, logon to pennystockalerts.com

Is the old myth about the man who turned $1 into 1 million dollars in the penny stock market true?

We’ve all heard legends about a man who turned $1 into $1,000,000 in one year by investing in some very hot penny stocks. Is this true, or just an old wives tale?

It’s certainly an interesting question. Another interesting question is why has this old legend persisted for so long?

I think it’s very simple to understand why this story is always told.  It’s everyone’s dream to turn $1 into a million. That idea is truly the embodiment of the American Dream.

The idea is that any old shmoe. Any Average Joe with virtually no money, through either skill or plain old dumb luck, can take a single dollar and use it to become rich. Who doesn’t like that idea?

The real question is, is that story true or not? Well first, is it even possible? As crazy as it sounds, the answer is certainly yes. It absolutely IS possible. It may not be easy or happen often, but it’s certainly possible. You’d have to receive some amazingly hot penny stock picks and have a lot of luck on your side, but there have been many times I’ve received penny stock alerts that have made gains of hundreds or even thousands of percent in weeks, days, or even less.

Take for example a hot penny stock pick I received from a penny stock newsletter on November 20, 2010. It was for a penny stock called INIX. INIX rose over 1000% in ONE day. Realistically if you only invested a dollar your profits would get eaten up by trading commissions, but for the sake of this hypothetical situation let’s forget about that part.

If you actually captured the full 1000% gain, you now have ten times your original investment. So instead of investing one dollar next time, you can invest ten dollars. If you got VERY lucky and continued to receive some very amazing penny stock picks, next time you could turn those 10 dollars into 100. If this happened again, next time you’d have 1000. Then you’d have 10,000, then 100,000, then finally…one million dollars.

Realistically that scenario would never happen. However, it’s not so far-fetched. While it is virtually impossible to capture 1000% gains with every trade, you certainly could capture gains like that once in a while as well as far more frequent gains of 50-100%. Realistically you’ll probably lose money on some of your trades as well.

Nevertheless with an entire year’s worth of making money on small cap stocks, turning one dollar into a million is absolutely 100% possible. You’d probably have to start with $100 or more to make sure all your profits aren’t eaten up by commissions, but anyone can start off with a very small amount of money and turn it into a million dollars!

Now is the old story true? Who knows. My guess is yes, it is true, but you or I will never know for sure. What really matters is, “is it POSSIBLE?” The truth is, the odds are stacked against you, but it definitely is possible for those of you with a high risk tolerance and luck and skill on your side.

Try looking at some penny stock newsletters to see how their penny stock picks perform, you can judge for yourself if the results are worthwhile before you start actually trading. This one is good, www.pennystockalerts.com I believe they have the best track record but you can watch whichever newsletter you want!

Good luck out there, you’re gonna need it.

Author writes about penny stock newsletter and penny stock alerts. To get more information on penny stock chaser, small cap stocks and hot penny stocks, logon to pennystockalerts.com