February 20th, 2012
Are you ready to trade penny stocks? If you do, then let’s get started. Before you can buy and sell penny stocks, you need to open an account with a stock broker. I recommend using Zecco. They offer cheap commissions for trading penny stocks.
Click here to visit Zecco.
February 18th, 2012
Follow Your Rules
Penny stocks are risky and if you want long term success trading penny stock, you should follow your trading rules all the time.
You should set stop loss for every penny stock you trade. I recommend to set somewhere around 20% so in case you are wrong on a stock, you still have money to invest for the next one. Also, you don’t want to set your stop loss too tight as a penny stock can easily go down and hit your stop loss frequently. You don’t want to get stop out only to watch it go back up after you stop loss is hit.
Use Limit And Stop Loss Orders
You should always use stop loss orders and limit orders to buy and sell stocks. If you want to buy a stock at $0.25, you want to set the limit order so that you can get it for that price. The reason you don’t want to buy with market order is a penny stock can move up quickly and by the time you execute your order, you may buy it for $0.3 or even higher. This is not what you wanted to see.
Make your own decisions
You should make your own decisions whenever you buy or sell a penny stock. You should not listen to gurus or anybody else. You can get trading ideas from them, but you should then do your own research and trade independently.
Don’t chase a stock
Never try to chase a stock. If a penny stock jump 100% or more in a day, don’t chase it, let it go. True, the penny stock may continue to go up, but there is a good chance that it will go back down. Remember, there are always better penny stocks out there that you can trade. The penny stock will never run away.
Learn from your mistake
If you make a mistake once, try not to make the same mistake twice. Instead, learn from it.
Keep a trading journal
Keep a trading journal with all your buys and sells and study them. You should also study the market everyday and try to learn how it acts. The more you know, the better you trade.
Do not trade money for emergency use
Never trade with the money that you need for emergency use. If you need the money for retirement, don’t trade it. If you need the money for your kids to go to college, don’t trade it. If you need the money to pay your bills, don’t trade it. You can only trade with the money you can afford to lose.
February 17th, 2012
Buy Trending Stocks
One strategy to use to trade penny stock is to buy low and sell high. You can look for trends of a penny stock and see if it is trending higher continuously. If it is, then buy it. Often times, a penny stock will form some kind of trend and it can last for a long time. You want to jump into these trends early so you can buy it at a low price and sell for a higher price at a later time. You should learn how to look at their charts and see if you can recognize winning patterns. If you are not familiar with technical analysis, I recommend you to study that and apply it to penny stock charts.
Buy ing on dips
Another strategy to use is buying on dip. A dip is when a stock drop and then starts to recover. A penny stock could drop or drag down by other similar penny stocks in the same industry. If a stock went down because of news unrelated to itself, there is a good chance that it will go back up. Hence, you can buy the stock on dip and get a good profit when the stock go up to its normal price.
Buy Low Market Caps
You can also buy low market caps companies. A company could be low caps for many reasons. One of the reasons is that the company is new or it is not known to a lot of investors. You can pick up quality penny stock companies in their early stage and when it starts to attract large investor interest, you will see your shares appreciated. You can then sell for a profit or continue to hold depends on the market condition. However, keep in mind this is a risky approach if you don’t do it right. The following conditions must be met in order for you to buy these companies.
- You must research the company thoroughly and make sure the products or services it offers has market potential.
- You should not blindly select any company with low caps and invest in it.
- You should know the industry very well and hence you judge whether or not their products are hot.
Buy Stocks You Know
You can buy penny stocks in an industry where you are good at or know a lot about. For example, if you are IT guy, you may want to look for technology related stocks. If you are an accounting person, you may want to look for bank stocks or financial stocks. This way you can buy stocks with lower risk because you know what they are selling and know the potential of their products and services. If you buy stocks in an industry where you know nothing about, you will have to do a lot more research and hence spend a lot more time. Also, it is easier for you to pick penny stock winners in an industry that you know a lot about.
Buy High Volume Penny Stocks
You can buy penny stocks with high volume. These penny stocks are generally safer than the ones with low volume because they are a little harder for one investor to manipulate the stock price. Also, usually high volume stock means there are more investors interested in buying the stock so it is a good thing because you can buy and sell them more easily. If you buy a penny stock with low volume, sometimes it is hard to find a buyer or a seller at the price you set, so you are force to raise the price when you buy and lower the price when you want to sell which is something you don’t want to see.
February 16th, 2012
Penny stocks can easily move in one direction with big percentage gains or losses.
When the demand is greater than supply, you may see 100% or even 1000% gain in one single day.
On the other hand, when the supply is greater than demand, you may see 100% or 1000% loss.
So what drives supply and demand?
Why does the demand go up so quickly?
There could be many factors and here are two of the main ones.
- Good News – The company may report good news such as earnings report or if the company signs a new contract with a big client. The company could announce share buyback or insider buying. These are great news that will drive up the price of the penny stock. When a company gets new patents or reversal merger, the stock price will definitely go up as these are all good news for the company.
- Stock Promoters – The penny stock price may go up tremendously if a company is pumping and dumping the stock. “pump-and-dump” is a term to describe an illegal trading strategies used by some big investors. A big investor or a group of investors have the ability to drive the price of a penny stock up or down because penny stocks are cheap and usually with low volumes. These investors first load shares of a penny stock and then promot the stock as a “hot stock” or “stock tip” to small players like you and me. After the small investors jump in, these big investors start to unload their shares, hence the penny stock will go back down. They make money by selling their shares to the small investors who loaded their shares base on their stock tips. This is called the pump and dump strategy. You must be really careful not fall into these traps.
January 19th, 2012
Free “Penny Millionaire” Training System:
Tim Sykes turned $12,415 into $1.65 million in 4 years
by trading cheap stocks under $5
– get his trading system for FREE today only!
If you’ve got a trading account under $20,000, this is the guy who could change your life.
Tim Sykes turned $12,415 into $1.65 million in 4 years by trading cheap stocks under $5 (And he has the broker statements to prove it).
Imagine turning every $10 in your trading account into $1,319 – that’s $132,190 for every thousand bucks you’ve got to trade – in four years flat.
That’s exactly what Tim Sykes did, and he’s got the audited broker statements to prove it. In fact, Barclays Ratings ranked Tim’s hedge fund the #1 short bias fund in the world because of what he reveals in your first free training video.
What’s remarkable is Tim became a self-made millionaire in 4 years starting with just over $12,000 by trading cheap stocks under $5 that anybody can own – even if you’ve only got a thousand dollars to invest.
Tim’s the real deal – look underneath your first free video and you’ll see his audited broker statements proving his returns are real.
But hurry up – I don’t know how long you’ll be able to get all of Tim’s strategies for free.
January 19th, 2012
They Made 8.5% in 4 Months With Penny-Traded Stocks While Many Traders Got Hammered
by The S&P 500’s Downward Spiral.
From April to August of this year, Tim Sykes has been like a guardian angel for those following his trading recommendations.
During that time, they picked up an 8.5% return while the S&P 500 was making a Ross Perot-like sucking sound on its way to tanking by 12%.
What’s even better is that Tim helped those who listened to him hold onto that gain by instructing them to move to cash at the beginning of this month.
He went been down this road before in 2008, when he scored a 197% return in a brutal market. He wanted his members to still make money, even while the market stunk.
And it worked.
Had you been following him during this time frame, you would have picked up $425 on $5,000 in your trading account, $850 on $10,000 in your trading account, $2,215 on $25,000 in your trading account and $4,250 on $50,000 in your trading account – in just 4 months.
Good money in any market… spectacular in this one.
Tim’s no stranger to this kind of success, even a gap a big as this one (20% between the S&P 500 and his trading accounts) in a down market.
In 2008, using penny-traded stocks, he scored a ginormous, 197% return for his members and himself while others where stuffing their mattresses with money so they could sleep better.
Also, as Covestor’s number-one ranked trader out of 50,000 traders, he posted returns of 141% in 2009 and 57% in 2010… and he has the verified trading accounts to prove it.
If you don’t listen to anything else I say this year, listen to me on this: Watch Tim’s video.
There’s no need to figure it out by yourself when Tim does it all for you.
All the best,
Wealth Insider Alliance
P.S. Keeping money you make is a good strategy, too. Tim sent me an email today telling me that he sold QPSA early today at $7.78 and it was down to $6.78 in about 2 hours.
July 24th, 2011
Microcap millionaire Tim Sykes tells investors to be skeptical – and to ask a lot of questions whenever a new investment opportunity comes their way.
Apparently, somebody is listening, because Tim has been getting a lot of good questions from viewers of his two free videos on how to make money with microcaps.
He’s answering the most common questions—with his usual, no B.S. style—in a surprising new video he just loaded up for you.
Get answers to your most pressing questions about microcaps here
If you’ve watched the other videos in Tim’s free series, you know he delivers. This video is no different. He lays it on the line about what it really takes to make money with microcaps.
P.S. Near the end of the video, Tim also answers a few questions about his new program for investors who want to make money with microcaps. Considering Tim’s remarkable track record, it’s well worth a listen.
Get answers to your most pressing questions about microcaps here
July 22nd, 2011
I’ve been talking to you the last week or so about micro cap millionaire Tim Sykes — the guy who made his first million in micro caps before he even got out of college.
Many times, I’ve been asked if Tim’s track record is for real — mostly by people who’ve been burned a time or two by gurus feeding them B.S.
Find out the truth by watching Tim’s new “proof” video here
It makes good sense for you to be skeptical about Tim’s track record. I was a little skeptical myself when I first heard about him — and for good reason. After all, he’s made some pretty big claims about…
…turning $12,415 into $1.65 million in high school and college…
…the returns he’s gotten over the last three years: 197% in 2008… 141% in 2009… and 55% in 2010…
…and how his hedge fund was Barclays Ratings’ #1 ranked short bias hedge fund for three years running, from 2003 to 2006.
My immediate reaction to hearing stuff like this is,
“Yeah, right. Where’s the proof?”
But I was intrigued, so I checked Tim out and I’m happy to report that he’s the real deal. And get this: He even has a Web site where you can check out and verify his entire 12-year track record.
Better yet, he just released a new video with even more proof.
Check out Tim’s new “proof” video and his track record Web site here
If you’ve ever dreamed of making money with micro cap stocks — but don’t know who to trust — then I urge you to check out this video right now. You’ll be glad you did.
P.S. By the way, Tim will be opening the doors to his new micro cap investing program any DAY. He’ll send out more information about that very soon.
Check it out here
July 21st, 2011
Tim Sykes was a self-made millionaire trader before he graduated college.
How’d he do it? He skipped classes, and while his peers were studying for finals, he was developing a 5 Step Formula for trading stocks under $5.
His formula worked so well that he turned his $12,415 of bar mitzvah money into $1.65 million in just 3 years – that’s about a ridiculous, 12,787% 3-year return. (Click here to see Tim’s 5-Step Formula)
“Yes, he has the audited broker statements to prove it.
I’ve seen them, because he publishes them publicly
for anyone who wants to see them.”
Today, as a favor to me, he’s sharing a video presentation with you that details his 5-Step Formula. Click here to watch it now.
Don’t worry – this video is 100% practical, profitable and useable content.
Tim’s post-college trading career has been just as spectacular.
- Barclays Ratings ranked his hedge fund—which he ran from 2003 to 2006—the #1 ranked short-bias hedge fund in the world… all three years.
- He’s been featured in Business Week, The New York Times, CNBC and dozens of other major media outlets.
- Over the last three years, Tim has continued delivering documented windfall profits, with returns of 197% in 2008… 141% in 2009… and 55% in 2010 – that’s an astounding 1,009% 3-year gain (before commissions).
That’s enough to turn every $10,000 invested into $110,900 – all during a time where the S&P 500 basically handed you 0.6% 3-year return (yes, that includes the post crash run up).
Bottom Line: You really should check out what Tim’s doing – especially since it doesn’t cost you anything to see his 5-Step Formula.
Grab a pen and paper and click here to watch this video presentation right now.
May 31st, 2011
There is one thing you will absolutely have to learn in order to make a fortune with penny stocks. There is something required of you, and without it I promise you will not be successful.
You must learn to listen your brain, not your emotions!
Let me give you an example:
You decide to buy a particular stock, and within 24 hours, you’re up 50%. Great!
Now comes the hard part. You’re up 50% and considering selling, but your emotions are telling you “Wait, what if it goes up to 100% tomorrow? If I sell out now, I’ll miss out on even more profits!”
You have 2 options.
Option #1: Listen to your emotions, hold on to it, and pray it continues to go up.
Option #2: Listen to your brain, call it a win, and sell for a 50% profit.
Which option sounds the best to you? You would not believe how many people pick option #1, and end up losing everything.
I’ve seen it a thousand times, even from my current members.
I recommend a stock through my daily alert email, and it goes up by 50% within a few days. Then I make it clear that this is a great win for us and it’s time to move on, and what happens?
I get a thousand emails all asking the same thing. “Shouldn’t we stay with it to see how far it goes? What if it goes up even more? I’d hate to sell it now, and miss out on even more profits!”
As a penny stock investor, you have to know when to walk away with a profit and be happy with a nice win. This is the biggest problem I see with people trying to make money trading penny stocks.
You’d be amazed at the number of emails I get saying “I sold the stock you recommended at 60% profits, but I noticed it went all the way up to 85% just a few hours later! If only I would have waited!”
Can you believe this mentality? Complaining about a 60% profit? It’s crazy!
I’ve learned to just laugh at these emails. Look, there’s always a chance that you could sell out a little earlier than what might be considered ‘ideal’, but the bottom line is we’re going for substantial profits, not substantial losses!
I guarantee that it’s much easier for penny stocks to go down after a huge rally, than it is for them to continue climbing up.
we invest with our brains
,not with our emotions. Sometimes we’ll have stock shoot up 50 – 100%, and other times a 15% or 20% gain is all the stock is good for.
You have to learn when to walk away.
There’s nothing wrong with making a nice profit, and leaving a stock early.
The sooner you learn this, the more successful you will be with penny stocks. If you’re interested in joining our weekly alert service, and you think that you can use your brain rather than your emotions, you can sign up today by visiting:
This is a guest post by James Connelly from Penny Stock Prophet.