Saturday, January 30, 2010

Free Penny Stock Picks that actually work?


Free Penny Stock Picks That Actually Work?



Free Penny Stock Picks That Actually Work?

By Matt P Morris




Anyone that is interested in penny stocks usually does the following:


  • Goes to google and does a search for "penny stock picks"

  • Finds a site offering a 100% free service, and opts in to receive the picks

  • Goes to his/her online broker account and buys the pick

  • Is promptly disappointed when they see the terrible results


So how can this be? Well it's really simple. Most stock newsletters are paid to profile each one of their penny stock picks. Therefore there can be no objective reason why they think the stock will go up in value. They are only recommending it due to the compensation they received, sometimes up to $500,000.

If the otcbb stock promoting newsletter receives such a large sum, that tells me something: They are expecting to sell much more stock to the general public who is suckered into buying their pick compared to what they were paid to promote the stock. In other words, as the newsletter is promoting the stock, the stock is being diluted, along with the interest of the people who bought the stock.

I am here to tell you that Microcapmillionaires.com never has and never will be a paid stock promoter. You can become a subscriber to receive 3 free penny stock recommendations. If you like the service you can elect to become a paid subscriber.

Many subscribers have extremely positive reviews of the service, and the testimonials keep piling in. Penny (microcap) stock trading can be very tricky, and doing on your own often involves a very time consuming learning curve. Good stock newsletters help to narrow that curve and get your trading account nice and fat.

To see if a particular newsletter has been compensated for a penny pick, simply check the disclaimer at the bottom of the email, no matter how tiny the font may be.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" stocks. Sign up for 3 free Penny Stock Picks here.




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Micro Cap Stock Picks - Are They Worth The Risk?


Micro Cap Stock Picks - Are They Worth the Risk?



Micro Cap Stock Picks - Are They Worth the Risk?

By Matt P Morris




Whatever term you like to use, whether it be penny stocks or micro cap stocks, you probably realize the huge potential there is. A friend of mine said his buddy from high school sat at home all day and ate cake since he allegedly hit it big with a microcap. Take that for what it's worth, but there are a lot of folks out there who bet on a stock and won big time.

Of course the flip side is that many people lose a ton of money by betting on cheap equities. The equation of playing micro cap stocks amounts to putting the odds in your favor as much as you possibly can, and attempting to minimize your risk as best as you can.

Let's look at how to put the odds in your favor to maximize profit potential before you buy a micro cap stock:

  • Identify bullish technical analysis patterns that suggest a break to the upside

  • Monitor news releases and gauge the optimism portrayed within the news

  • Recognize past resistance levels and plan to exit or reduce your position accordingly

  • Check the percentage of shorts in the stock you are interested in, the higher the better

  • Research and recognize future newsworthy events that could negatively or positively affect share prices, for example quarterly earnings release dates or projected dates for announcements on FDA approval of new drugs that have the ability to bring large profits to small pharma companies.

Now we can look at how to minimize our risk when playing micro cap stocks, since undoubtedly there will be some losers:

  • Utilization of stop loss orders, setting them just below previous support levels can save you an absolute huge amount of money if the stock goes south fast

  • Watch news develop concerning earnings power for the company and sell if you find credible evidence that bearish sentiment will prevail by the time the next quarterly earnings release is out

  • If your gut tells you to sell you with a small or moderate loss, do it!

If all of this sounds like gibberish to you, I recommend that you get a little more familiar with micro caps and stocks in general. However don't think for a minute this stuff is over your head. If you have a burning desire to make it big by playing the market, I think you stand an excellent chance at achieving your dreams. Maybe you just need a little hand holding to get you on the right track.

If you would like to follow some of my micro-cap stock picks, you can sign up at my site free of charge. Some do extremely well for us, we like stocks with big potential in short periods of time. That way we can move on quickly if the pick doesn't move. It's an exciting thing to check your trading account and see that your investment has gone up 100 percent or more in just a few days, and that's what our goal is with each pick.

So to conclude the thoughts posed by the title of this article, I would say that playing these types of equities is most definitely worth the risk if you play your cards right and know what to look for.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.




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How To Pick Hot Penny Stocks


How to Pick Penny Stocks With Volume Scans



How to Pick Penny Stocks With Volume Scans

By Matt P Morris




Using some type of scanner is an effective way to find penny stocks to play. There are many out there on the market, so I am just going to talk about a basic scan that all penny stock screeners should have the ability to detect. Volume is the single most important technical indicator that you should pay attention to if you want to trade micro caps or pennies.

Equities/stocks that are traded on the big board indexes such as the NYSE and the NASDAQ all have respectable amounts of daily volume, or in other words they have a lot of money flowing in and out of them in the form of shares being bought and sold over the electronic exchange. Penny stocks do not possess this attribute as a whole. Some have an average volume each day of over one hundred thousand dollars, others are lucky to see five grand change hands before the closing bell. This is both a blessing and a curse for penny traders, since an abnormal drop in volume can equate to an unfriendly selling environment and force them to hold their shares until liquidity returns. It can amount to a long, long wait for it to pick up too.

So what is it about a volume scan that can be a good thing for a trader to spot? Well, it's not an unusual drop, it's an unexpected sudden increase that can tip your hand to a play that might make you a ton of dough. A volume jump can signal a stock is going to go up or down very quickly. Let's look at a few things that can be fundamental causes of wild jumps in trading activity (volume):


  • Massive selling underway, in that case it would be a good thing to watch the stock and try to pick a bottom for a good bounce play

  • Positive news release just issued, sparking frantic buying frenzy that can send a stock up for multiple hours or days

  • A paid promoter or promoters just sent out a massive amount of emails to subscribers who purchase large blocks of shares within just a few hours of each other, otherwise known as a "pump"

My personal favorite is bottom bouncer type scenarios, where traders who own a certain stock are dumping it down to new 52 week lows in a hurry. What I look for is areas on the chart where I feel support will kick in, and then I will place limit buy orders in those price areas. More often than not, a moderate or extreme push upward occurs in that particular stock and I can sell for an easy 50 to 150 percent profit.

I will play the other types of volume scans, but volume breakouts have been extremely good to me and to my subscribers. I fully expect these types of opportunities to continue to present themselves, and I fully intend to capitalize on them. You can get your hands on penny stock recommendations that adhere to the above strategies at Microcapmillionaires.com.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.




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Penny stock pump and dumps - how to trade them exposed


Penny Stock Pumps & Promotions - What's the Best Way to Trade Them?



Penny Stock Pumps & Promotions - What's the Best Way to Trade Them?

By Matt P Morris




I know how to trade penny stock pump and dumps. There is a certain way to screen out the picks that will most definitely be losers. If you can screen out the losers, then you are left with the winners. I can give you some general guidelines to help you become a successful penny trader by leveraging the power of the pump.

If you take a stock that has been lying dormant for several months, with almost no trading volume, and introduce this stock to thousands of investors or traders who like to take on high risk/high reward type stocks, you have the potential for a massive percentage gain in that particular equity/stock.

What would bring about this type of situation for a stagnant stock? A paid promotion, of course. These are also referred to as "pumps" by those well versed in the realm of penny stock trading. Penny pumps are a consistent occurrence in today's market. During the bear market of 2008 these types of stock promotions almost came to a standstill, but things are back to normal now. Basically, a publicly traded company with cheap shares will hire a stock promoter(s) to send out emails and snail mail to people who have expressed interest in penny stocks. Its a pretty shady ordeal, and most people who buy the promoted (or pumped) stock will come out with much less money than they originally invested in the stock.

Anyways, here are a couple things to consider to screen out the bad penny picks from the good ones:


  • The number of shares outstanding. You can learn to evaluate how likely it is that a stock will move if you understand the share structure. There is a few other factors about share structure to consider that will enable you to rate the penny share/stock and it's chances of moving up.


  • Who it is that is pumping/promoting the stock. From my observations, penny stocks that are promoted by certain promoters have a higher chance of ascending in price than stocks pumped by average promoters. I can not list them all in this article but I do advise members of my site on this factor.

If you want to try to trade a few penny promotions on your own you are very brave. However if you arm yourself with some special techniques and facts you not only be a brave penny stock trader, but you will be a profitable one as well. I offer 3 free penny stock recommendations to members of my site, and I also will give you some useful nuggets of information to help you become an ultra successful investor/trader.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.




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Can I really make a profit with penny stocks?


Penny Stocks - What Are the Odds That I Can Make a Profit?



Penny Stocks - What Are the Odds That I Can Make a Profit?

By Matt P Morris




Penny stocks. Bring up that topic around well to do circles of people and you will likely draw some snickers and light hearted mockery that would have you to believe it is a fool's game. People are taught that big, boring blue chip stocks are the best vehicle to place their money in as an investment. I will concede that many well known stocks are good investments for the long haul. They sure are boring though!

So the question presents itself in the minds of people who dare to dream that they can make a fortune, either big or small: What is the next big penny story? Or maybe something a little more specific, like: What stock is going to be the next big softdrink maker? Or the next software giant or smart phone maker?

A few years ago this sort of fascination with penny and micro cap stocks often scampered through my mind, if only for a few minutes each time. I soon learned that making a fortune with penny stocks is possible. But not from buying one or two penny shares and holding them until they become world renowned companies! The real money is made in trading in and out of penny stocks, swiftly and without emotion.

Don't misunderstand, you can many times find the right penny stock to trade if their story is sexy. Just don't get carried away with believing in the company and always take your profits when your gut tells you to. You will develop a "good gut" for trading penny or micro cap stocks after you have gained a little experience.

I recommend starting off paper trading, after you have proven yourself to be successful, then you can go ahead and start trading with real money. If you want some penny stock recommendations, go to microcapmillionaires.com and sign up on the free list. You can join as a paid member whenever you wish, but I want you to be sure about it before you take the plunge.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in existence. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" stocks. Sign up for 3 free Penny Stock Picks here.




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Penny Stocks To Watch - How To Make A List Every Day


Penny Stocks to Watch - How to Make a List Every Day



Penny Stocks to Watch - How to Make a List Every Day

By Matt P Morris




Finding penny stocks to watch every trading day should not be perplexing to people. However, the internet can be both a blessing and a curse due to the fact that there is such a vast amount of data available. I want to introduce to you a basic technique that will allow you to put yourself in a position to play the most promising micro cap stocks each and every trading session.

Your first option to develop a watch list is to leverage the power of websites that collect data. The site I use many times is stockreads.com. You can simply go there to see what penny stocks are being promoted and which ones have higher than average buying volume. You will develop a knack for playing picks that can make you big profits after you spend some time following the trades that are outlined on the site each day. Another site to use is investorshub.com, where you can view the stocks with the most chatter or total amount of user generated posts. Using both of these sites is helpful, but it can sometimes be frustrating to try to develop any sort of cohesive strategy after reviewing the information that you can gather at each site.

The second option is to sign up for penny stock newsletters that give you a brief synopsis of the opportunities to trade micro caps/pennies each trading day. There are many newsletters out there, however most are pump and dump organizations that have conflicts of interest on every penny pick they make. You want to find a service that can give you an objective analysis that is actually beneficial to you so you can make your trading decisions swiftly.

After all, you have a job to work, and you don't have time to sift through every interesting penny stock every day. I offer 3 free penny stock recommendations to people who sign up at my site, Microcapmillionaires.com. I will also show you some cool shortcuts that will help put you on the fast track to becoming a successful penny trader. You can start just by paper trading until you get the feel for it. After you learn the ropes, you'll be amazed at how successful you can be.

Written By Matt Morris, Editor of Microcapmillionaires.com the best penny stock newsletter in the whole wide world. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.




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Saturday, January 23, 2010

Where Can You Find a Good Penny Stock Picker Or Penny Stock Newsletter?


Where Can You Find a Good Penny Stock Picker Or Penny Stock Newsletter?



Where Can You Find a Good Penny Stock Picker Or Penny Stock Newsletter?

By Matt P Morris




What should you consider when you are looking to find a good penny stock picker? Some of them seem to charge an unbelievable amount of money, sometimes ranging over one thousand dollars for a subscription. On the other end of the extreme, you have some penny pickers who don't charge a dime for their service. What really matters is results. Regardless of the price of a subscription, if a penny newsletter helps you to achieve 100% gains fairly frequently, it is definitely worth the price as long as the subscription fee is within reach for you.

Let's look at some of the pros and cons of subscribing to a fee based penny/microcap newsletter.

Pros: The fact that someone is being held accountable to certain extent to provide quality penny/micro cap stock recommendations. If you sign for a service and receive nothing but stock picks that perform poorly, odds are you going to cancel that subscription and the newsletter owner will lose valuable revenue. You should also be able to get email support from the penny pick service since you have taken the step to pay for their service. Lastly and perhaps most importantly, the equity selections sent out by the service should be completely objective and without conflict of interest. They should not be compensated by any third party to recommend any particular company/stock.

Cons: Your risk can be two fold with a fee oriented penny picking service, since you are not only paying for a subscription, but you are also putting your trading money into their stock selections. This is where it is important to look for penny stock newsletters with solid cancellation and refund policies. It is a vexation to have to jump through hoops just to get a refund when you are dissatisfied with a particular newsletter. Also, sometimes a penny picker may become a little gun shy and fail to broadcast a pick after he or she makes a bad choice or two.

Secondly, let's examine some good points and bad points of a totally free penny/micro cap newsletter.

Pros: It's free! You don't have to bother shelling out any money to get the picks. Most of the time all you have to do is sign up using your email address and first name.

Cons: Non-objectivity is the name of the game. Most penny recommendations that you receive will not be based off of independent opinion. Totally free penny services only offer equity selections due to the fact that they were compensated a large sum of money to promote a certain company's common stock. This may not sound like a big deal to you initially, but I assure you it is a huge obstacle for you to overcome as a trader or investor in micro cap companies. Reason being that after the stock selection is broadcasted, insiders start dumping many thousands or even millions of shares into the face of the newly inspired buying during trading hours. This greatly disables the ability of the stock/equity to appreciate in value since the supply of shares has so dramatically increased in such a short period of time.

Conclusion: The obvious choice is to go for fee based penny stock picking newsletters. They give you the highest chance to succeed, since their motivation is to make you money from their stock picks. On the other hand, the motivation driving free penny selection services is totally contrary to your success as a trader. They only wish to draw in more novice investors so they can draw large compensation fees from company's who need their stock promoted.

Not sure which penny stock newsletter to start with? Microcapmillionaires.com offers 3 free penny stock recommendations so you can try them out before you become a paid member. The fee is $49 a month if you decide to join.

Written By Matt Morris, Editor of Microcapmillionaires.com the highly rated penny stock newsletter. I am one of the few penny-newsletter-guys that do not accept compensation to "pump" penny stocks. Sign up for 3 free Penny Stock Picks here.




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