Hot Penny Stocks are awesome when you get to them at the right moment…you know the old adage, "Buy Low, Sell High!"…well when you get a hot penny stock, this is pretty easy to do!
I’m not a stock broker, or professional trader by any means, I’ve simply been dabbling in penny stocks for a few years. I think the "secret" is to buy in large quantities…that’s just common sense really…if you’ve passed 3rd grade math or know how to use a calculator, you’ll understand what I’m talking about.
When I first started doing this, I was hooked…because you can make money pretty easily and it’s fun! On the other side of the coin, you can lose a lot of money if you get in over your head or start doing things that you shouldn’t. Here’s a good example of that: When I first started doing this, I was able to get a margin account…that was a mistake! For those of you who don’t know what a margin account is, it’s when your brokerage will allow you to buy stocks even though you don’t have money in the account.
I was buying what I thought were hot penny stocks thinking I would turn around and sell them right away when they went up a little…that can work, but you have to be very careful…the idea behind that was to buy a stock, sell it, and make a profit without actually ever spending a cent…that goes on all the time only on much larger scales and is is probably one of the reasons why this country is so screwed right now…but I digress…I recently started buying a few penny stocks and have been doing ok…no margin account this time!
The other day I was thinking if I made X number of trades a day that made X amount of money, I could make an ok living, or have a nice extra chunk of change coming in every month. I think I’ll try it out see how it works out.
The stock doesn’t even have to be doing that well for it to work either. For instance, if you find a stock with a price of .002 and buy a million shares ($2,000) and it goes up a couple ticks to .005, you’ve made $3,000…that is of course if you’re able to sell at that price. What you can do is put the sell order in right after you purchase it and set it for "Good Until Cancelled"…again, I AM NOT A STOCK BROKER AND HAVE NO AFFILIATIONS WITH ANY BROKERAGE FIRMS except for my own personal accounts…I just have the sack to take the risks…if you don’t, I would stay away from penny stocks, also if you CAN’T AFFORD to lose the money you’re putting into your penny stocks, DO NOT play this game.
I like penny stocks because you don’t need to put a lot in to make a profit…here’s the thing. You do a couple and come out ahead, then you have more to put on the next one and so on…sometimes you can even do it with the same stock if it fluctuates enough.
Also if you can find penny stocks in an industry that you like, it makes it a lot more fun. I’ve been looking and finding in the "Green Chip" sector…those are penny stocks that are from companies that are environmentally friendly. Like ENERGY FOCUS, INC. symbol EFOI, they make LED lighting which is replacing the old standard light bulbs because they last longer and are much more efficient. There are several companies out there that are doing this and getting contracts from the military and other huge industries like that.
KOPN is another (Kopin Corp), I just sold the shares I had with them, I should have waited a couple more days because it’s still going up…I bought that one at $2.93 and now it’s up around $3.70…I sold it because I just found another sleeper penny stock that for some reason started to move…I wish I knew about it at the beginning of August when it was under .01…the stock is CNCG (CONCIERGE TECHS INC), it’s around .025 right now…I hope it keeps moving the way it has over the last few weeks.
Another one is SIVC (S3 INVESTMENT CO INC)…this one is trading at .0002 right now…it’s a weird one, so buy at your own risk…but it has been moving from .0002 to .0005, back and forth over the last few weeks, so I think someone is making money…this one is like that example I gave above.
Like anything, there are a lot of cons out there too, so be careful and do your research…at least a little to find out if the company is legit!
Anyway…good luck, happy trading, I hope you make a ton of money!!