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penny stocks
Can Penny Stocks Make Millionaires?
By Alex Flanks
 Is it possible for people to really make a substantial profit using
Penny Stocks, even to become millionaires? Certainly there are some
people who make huge amounts of money with stocks, ordinary people
who trade in their own time perhaps as a hobby rather than as a
professional trader. It is very likely however that although they
started on penny stocks they eventually moved up to other
potentially more profitable stocks using larger sums of money once
they felt they were more experienced, and had more money to spend.
Of course the question then becomes how do you start making profits
quickly in penny stocks with the least risk?
Before we answer that question, let us quickly define exactly what
we mean by penny stocks. There are different precise definitions,
but in general the phrase refers to low priced, highly speculative
stocks which normally sell at less than $1 per share. They are very
volatile and can rise and drop hundreds of percentage points in
minutes, sometimes as much as 400%. This can of course be dangerous,
but can also be extremely profitable if you know what you are doing.
Now that we know what penny stocks are, how can we quickly work out
what to trade and when, to maximise our profits? Remember, normally
only after we have made a number of trades using small low risk sums
can we even think about making the kind of trades we need to make
the big money quickly. In most cases traders simply have to put in
the hours - and weeks and months and years - to become experienced
in the market. Only after trading many times and analyzing the
trends and results over a long period can a trader say he really
understands trading stocks, and even then he will still lose on many
trades.
However there are of course many shortcuts on offer. There are many
"systems" available, ways to help you identify trends and profitable
opportunities as they happen, but there are huge problems with most
of them. The main problem is simply that any system still relies on
analysing the historical trends, and this takes time and effort.
However, there may be a new solution.
Two computer programmers have created a piece of software which
performs scans of stocks looking for companies who are forming
bullish trading patterns, ie their stocks are about to increase.
This software records historical information constantly and learns
more and more over time, and every week it outputs recommendations
of stocks it thinks should be bought and sold. These recommendations
are only made when the software is confident in the outcome, based
on the huge amount of data it has analysed.
Of course, as with all stock trading, and particularly in the
volatile penny trades market, not every decision will be correct,
even the software cannot predict every possibility. But on average
the software is reported to create gains of 105.28% per week, even
accounting for the trade recommendations which do not work out.
Could this be the key to making significant profits from penny
trades without spending years as a trader? Apparently if someone had
put $5000 on each of the recommended trades over 4 months last year
they would have made $387,684 in profit.
For more information about this
new
penny stocks software, and how anyone can profit from it, visit
www.PennyStocksOnline.org.
Related Topics: how to trade stocks for dummies
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