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.

1. 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.
2. 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.

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

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

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.

What are the pros & cons in trading penny stocks?

Pros – the pros of trading penny stocks is that you can get rich quickly if you trade the right penny stocks.

Cons – the cons of trading penny stocks is that you can go broke quickly when you buy the wrong penny stocks. Also, you will have to buy a larger amount of penny stocks to offset the bigger transaction cost of trading penny stocks. Some penny stocks are highly illiquid so that you may have to pay an even higher commission when you look for a buyer or seller. Therefore, you should always make sure the penny stock that you are trading with has enough daily trading volume to start with.

As you can see, there are more cons of trading penny stocks than pros. Therefore, you must learn how to trade penny stocks in order to make a good profit and learn from an experience trader would definitely help. The price you pay for mentors will get paid off fairly quickly when you invest in the right penny stocks as they can go up 100% overnight, and you may double your money with one single trade.

Penny stock is a big market where traders want to take advantage of. What many doesn’t realize is the risky involve in it. True, you can double or triple your money in a month, but it is also true that you could lose all your money in a month. There are newbies who want to get rich overnight with penny stocks, chances are these newbies will likely to fail. In order to trade penny stocks successfully, you need to learn how to do research and spend a lot of time learning from others as well as through your trading experiences. It is highly advisable that you get mentor if you are completely new to trading. If you invest $5,000 in a penny stock, you may lose it all in 1 day, but if you invest let’s $2,000 in an experience penny stock winner, you may be able to replicate his success and do well after you pay the price. You can do some research on your own to find a mentor or try Tim Skyes, the penny stock millionaire who made a fortune in penny stocks. Click here to watch a free video by Tim Skyes who will give you an introduction on how penny stocks work.

There are different types of penny stocks that trader talk about. Some considered penny stocks as any stocks that are currently trading below $5, some consider anything $2 as penny stocks. These stocks are trading on NYSE, NASDAQ or AMEX. However, there is one more kind of penny stocks that traders talk about. They are called the Over The Counter penny stocks. These stocks are not listed under NYSE, NASDAQ or AMEX. The over the counter market, also known as OTCBB (Over The Counter Market Bulletin Board) which is a regulated quotation service.

At buyhotpennystocks.org, you will find both OTCBB penny stocks and the penny stocks that are trading on NASDAQ or NYSE. However, OTCBB data is end of day data where as the other kind is updated every 15 minutes during intraday trading. We list all penny stocks on our site and you have the ability to find penny stocks that are currently making moves, or about to make moves.

“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.