Invest in Penny Stock That Are About To Break Out
Investing in Penny Stocks That Are About to Break Out
(Making millions with small capital)
We all have heard about investment opportunities, the stock market, and many other low risk – low reward alternatives investment, such as bonds. There is however one particular area of interest, a stock market based investment, that is completely different to classic stock investment ideas, that is penny stocks!
There is a hidden pattern of profit, in the way that stocks make a return. There’s a secret that can make all the difference, between an average profit and a massive profit. This little secret is simple: Buying at low price, and as close to zero, as possible!
Here is an illustration using numbers, that shows what a difference a lower price makes:
Consider 2 different stocks in the stock market, one is about to move $5 higher, and the other stock will move $10 higher! But, one is currently priced at $0.50, and the other is priced at $4.
Stock Current Price Future price Percentage gain
A $0.50 $5.5 (up $5) 1000%
B $4 $14 (up $10) 250%
Look carefully at the above example, and think which stock is a better deal.
To savvy stock investors, the real secret is buying as close to zero as possible! Of course, in practice you can’t buy shares that are worth less than a few pennies, but that’s as good as it gets!
Now, apparently you wonder which of the above two stocks is a better deal, obviously it has to be stock A. With stock A, you only pay $0.50 per share, buying at lower price is the key! So if we assume that you have $1,000 available, after investing in stock A, you end up with $11,000, whereas if you invested in stock B, you would end up with only $3,500! You see my point here? Even though stock B has made double the gain in terms of dollar movement, it has actually made a 4 times smaller percentage gain. That is the little secret most investors overlook!
It is very easy to miss the difference, get confused, and believe that stock B is a better deal. But if you do the math, you will see that going from $0.5 to $5.5, is equivalent to going from $4 to $44, in percentage terms!
Stock Market Facts
- Very few stocks ever go from $4 to $44, but many under $1 stocks go to $3, $4 or $10!
- Finding and predicting stocks that will make astronomical gains, is very difficult, almost impossible!
- People who make millions in the stock market, do so by trading many low cost stocks, and buying them for pennies!
Now of course, you may be wondering how to find these stocks, and if there are such trading opportunities all the time. The answer is that, YES there are people who analyze the markets, and do extensive research on all stocks. They finally find the ones that are worth investing in. And most of them, invest small, ridiculous amounts, amounts like $70! And yet, even that $70 could be invested in a stock, like stock A in our example, that is very realistic. After paying a commission to your stock broker for 140 stocks, valued at $0.5, you would pay around $85 total ($15 commission). If the stock does move from $0.5 to say $4, you would have made $560! And think that, this can often happen in a matter of days.
A stock advisor cannot be very precise on the timing, he will tell you for example, to expect the stock movement, sometime over the next 3 to 10 days. But the stock will make ALL of its gains in one day only! We just don’t know if it will be day 1 or day 7.
I have seen it in practice, they are usually wrong by few days on the timing, but 75% of the time, they are deadly accurate on the direction. That means, if they give you 20 tips on penny stocks, you should expect 5-6 losers, and 15-16 winners. This technique is amazing, you can still make great money even with just 30% accuracy. Because you know that, a losing stock, will lose only few $100’s dollars. For example, if your $1000 in the example with stock A went wrong, and the stock dropped from $0.50 to $0.3, you would still have $600 left, you would have lost only $400. But when the stock does well, it generates a 10 or 11-fold capital increase, it turns $1,000 into $10,000 or even $11,000.
Losing $100’s and winning $1,000’s? Yes! Exactly! You still make serious money, even with a very bad success ratio of just 30%, let alone a 75% ratio.
Take the opportunity to search for the best out there; you can make an excellent income, by investing only a tiny portion of your capital!
For more information, visit Penny Stock Prophet
Secured by