Are Penny Stocks the Fastest Way To Make Money Or Lose Money?
Recently, I was reading through some questions posed by newbies.
Many of the questions essentially boiled down to this: Are penny stocks the fastest way to make money or lose money? Some newbies were more interested in how to make money fast from penny stocks and others were expressing more concern about losing money if they attempted to trade penny stocks.
From reading through the answers they received, I found there were two camps on each end of the spectrum with virtually no one taking a position in the middle.
On one end, people flat out said things like, "Don't trade penny stocks at all...
it's like gambling.
" On the other end of the spectrum people said things like, "...
just dive in...
sign up for my free newsletter..
..
my free e-course..
..
and you'll make tons of money because everyone knows there more profit potential in penny stocks than with other stocks.
" I found all of the answers to be completely inadequate to a newbie seriously interested in learning how to make good money from these types of stocks.
I would like to provide a more practical answer in this article.
First, my short answer to whether or not you will make money or lose money with penny stocks is that it depends on your strategy.
I also want to point out that if you follow the advice that was being given on those forums, you will likely LOSE money - perhaps your entire investment.
Many newbies do just what was suggested - they subscribe to all sorts of supposedly "free" newsletters/e-courses/etc and then follow the bad advice in them.
They follow some supposed "hot stock pick" and then lose all or most of their money very quickly.
Those that can afford it do this repeatedly until they burn out thinking that the people who advised not to buy penny stocks at all must have been right.
This is very unfortunate because you CAN make a lot of money with penny stocks if you use the strategy.
What I'm about to tell you is golden advice based on experience.
If you chose to follow it, you will have a very good chance of making good money and you will lower your risk very significantly.
First, I would strongly suggest you never follow the advice in anything offered for "free.
" 99.
99% of the time, it is very bad advice.
Free penny stock resources are full of intentional pump and dump scams.
They are also full of "free advice" from others that are not much beyond the newbie stage themselves pretending to offer "expert" advice.
After lots of trial and error, I have found the most profitable strategy for me is to ignore all the free advice and buy PREMIUM penny stock picks from people who have successfully made a fortune trading penny stocks themselves.
I ALWAYS test these stock picks in a test account before I trust the source enough to invest real money in the picks they are offering.
I learn a lot from closely following these premium picks from real experts.
However, I confess the main reason I choose to invest this way is that I make so much money just trading the picks I am given that I am able to fund several non-profit causes that I care truly care about.
Also, the risk is minimized using this strategy and frankly this is much easier on my psyche than me trying to figure out what stocks to buy myself!
Many of the questions essentially boiled down to this: Are penny stocks the fastest way to make money or lose money? Some newbies were more interested in how to make money fast from penny stocks and others were expressing more concern about losing money if they attempted to trade penny stocks.
From reading through the answers they received, I found there were two camps on each end of the spectrum with virtually no one taking a position in the middle.
On one end, people flat out said things like, "Don't trade penny stocks at all...
it's like gambling.
" On the other end of the spectrum people said things like, "...
just dive in...
sign up for my free newsletter..
..
my free e-course..
..
and you'll make tons of money because everyone knows there more profit potential in penny stocks than with other stocks.
" I found all of the answers to be completely inadequate to a newbie seriously interested in learning how to make good money from these types of stocks.
I would like to provide a more practical answer in this article.
First, my short answer to whether or not you will make money or lose money with penny stocks is that it depends on your strategy.
I also want to point out that if you follow the advice that was being given on those forums, you will likely LOSE money - perhaps your entire investment.
Many newbies do just what was suggested - they subscribe to all sorts of supposedly "free" newsletters/e-courses/etc and then follow the bad advice in them.
They follow some supposed "hot stock pick" and then lose all or most of their money very quickly.
Those that can afford it do this repeatedly until they burn out thinking that the people who advised not to buy penny stocks at all must have been right.
This is very unfortunate because you CAN make a lot of money with penny stocks if you use the strategy.
What I'm about to tell you is golden advice based on experience.
If you chose to follow it, you will have a very good chance of making good money and you will lower your risk very significantly.
First, I would strongly suggest you never follow the advice in anything offered for "free.
" 99.
99% of the time, it is very bad advice.
Free penny stock resources are full of intentional pump and dump scams.
They are also full of "free advice" from others that are not much beyond the newbie stage themselves pretending to offer "expert" advice.
After lots of trial and error, I have found the most profitable strategy for me is to ignore all the free advice and buy PREMIUM penny stock picks from people who have successfully made a fortune trading penny stocks themselves.
I ALWAYS test these stock picks in a test account before I trust the source enough to invest real money in the picks they are offering.
I learn a lot from closely following these premium picks from real experts.
However, I confess the main reason I choose to invest this way is that I make so much money just trading the picks I am given that I am able to fund several non-profit causes that I care truly care about.
Also, the risk is minimized using this strategy and frankly this is much easier on my psyche than me trying to figure out what stocks to buy myself!
