How do you GET RICH using PENNY STOCKS? Since some people are doing it?

Question

The leading investor profile on ZECCO.com brianjahrling buys penny stocks and makes a fortune consistently like 100% a day HOW DOES HE DO THAT? I thought penny stocks were a no no

Answer 1

You got to know, inside out, the stock, the people behind it and the traders in it, and what is going on "in reality". If you just guess you will get ripped off by these very same people.

Answer 2

If you are a hard working person who wants to invest (on the side) then good for you. But if you are one of these lazy investors who do nothing for society but make money for themselves and do nothing to make life better for the rest of us then shame on you. Work hard THEN look for ways to invest.

As for penny stocks. Just what the name implies - you make pennys.

Answer 3

I don't buy it.  Risk and return go hand in hand. Most claims like that are scams.

Answer 4

Penny stocks are penny stocks for a reason.  Micro cap stocks are very volatile and usually represent companies that don't have a stable history of revenue and profit.  That's why they're penny stocks.  You can see dramatic moves in penny stocks.  A .01 stock that goes to .02 just doubled.  Wow!  But what does it mean?  How many shares trade on the exchange?  Is it even on a major exchange like the NASDAQ or NYSE?

Stocks that trade under 500,000 shares a day can move in price just because there aren't many available to trade.  So price movements may not be a reflection of the company's performance.  So if you buy $1000 of a ten cent stock, that's 5% of the daily trade volume.  Do you think that will impact the price?  And when you go to sell, odds are higher that you will receive a bad fill (you won't get the same price for all your shares).

Also remember that penny stocks are a prime target for scammers.  Because the trade volume is low, scammers can hype up a stock driving up the price.  The scammer sells his stock for a nice profit, and you get stuck holding the bag.

Stick to stocks that are trading above $10.

Answer 5

100% of anything is tremendous alert! BEWARE!

Answer 6

Most people lose money on penny stocks, it's gambling more than anything.

And I assure you that no one is consistently making money on penny stocks, like 100% per day unless they are taking HUGE risks... he may be bankrupt by tomorrow if something goes wrong.

http://yarcofin.wordpress.com

Answer 7

Trading penny stocks is the same in principle to trading other instruments--Buy on strength, sell on weakness.

I don't know how brianjahrling trades penny stocks, but it is amazing how he makes money. Surely we all can learn something from him.

I assume he has an inrtaday trading method that works well. Such a method incorporates tight stops, as penny stocks are low volume stocks, that can lead to huge losses if you are not a disciplined trader.

If you want to make money trading the markets, you need to have an open mind.