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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