Top 5 Reasons You Should Trade Penny Stocks

by Jason Brook

Penny stocks are often overlooked when it comes to making money with stocks. To shed some light on the profitable side of penny stocks, here are the top 5 reasons why you should trade penny stocks.

Reason #1: Penny stocks show the greatest daily percentage gains.

Here are some examples.

2/9/2006 AXIGE 272%
2/9/2006 VPER 200%
2/13/2006 PAPO 136%
2/13/2006 CKEI 184%
2/14/2006 PTSH 366.67%
2/14/2006 IELM 115.69%
2/14/2006 CSUA 111.11%
2/15/2006 LAMP 149%
2/15/2006 CTUM 133.00%
2/15/2006 JKRI 116.00%
2/16/2006 SEVI 225%
2/16/2006 RSMI 93%
2/21/2006 NWBT 125%
2/21/2006 DRDF 82.50%
2/27/2006 IVOC 240%
2/27/2006 CNES 240%
2/28/2006 NEXH 200%
2/28/2006 ADOT 100%
3/1/2006 NWBT 77%
3/1/2006 COIB 77%
3/3/2006 GTEC 65%
3/3/2006 CNES 58%
3/2/2006 WTVN 80%
3/2/2006 IHDR 77%
3/6/2006 AVST 340%
3/7/2006 SEVI 204%
3/7/2006 MGEN 141%
3/9/2006 AVNT 344%
3/9/2006 TUBM 200%
3/10/2006 PTSH 85%
3/13/2006 ONEI 114%
3/24/2006 EGEI 386%
3/27/2006 SVMI 200%
3/28/2006 AEGCF 198%
3/28/2006 RBCV 98%
3/29/2006 MGEN 155%
3/31/2006 NVAO 287%
3/31/2006 RSHF 95%

You should take advantage of these huge percentage gains. Ride the wave and sell your penny stock shares at a nice profit. You won't find any other stocks that display this great of a percentage gain in one day. Now you know that it's possible to make money from these percentage gains, all you have to do is learn how to spot them and take advantage of them.






Reason #2: You don't have to wait a long time for returns

You see those gains above were made in a day, not a year. You don't have to wait a year to get the average measly 10% gain that the stock market returns. That's the great thing about penny stocks. Your returns will be made within a very short period of time.

Because you get your returns quickly, you know what you can do with that money? You can reinvest it again and start compounding your money!

Reason # 3: You don't need that much cash to start

If you had $1000 and you only got 10%, that's a hundred bucks right there. To get that same $100 by investing in non penny stocks, it requires a substantial amount of capital to get that same profit in the same amount of time.

For example, let's say you invest $1,000 in buying stock ABCD, where the price per share is $20.00. So you effectively bought 50 shares. You would have to wait a long time for the price to get to $22.00/share, to get that same $100.

You can decrease the time it takes to get that $100 by investing a larger amount of money.

But when it comes to penny stocks, the return is so fast that you don't have to use a large amount of capital. That's the beauty of penny stocks. It doesn't require a lot of capital and the returns are fast.

Reason # 4 You don't have to do that much research

Since you are buying at 9:35 AM and selling at 10:14 AM, you don't have to do as much research as investing for the long term in stocks. That's not to say you can just randomly pick a penny stock to trade with. Of course you must engage in some research before trading. Otherwise, you are just gambling.

Reason #5: You can do it all from the comfort of your own home.

All you need is a fast Internet connection and a fast computer to trade with. All the information you need to make your decision on which penny stocks to trade with can be found on the web.

I don't want to give the impression that making money from penny stocks is easy as 1-2-3. Nothing in life is easy. Learning how to make money from penny stocks requires knowing the right information, learning self discipline, and paper trading. By doing these things, you can prepare yourself for the real deal and start making money with penny stocks.


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About the author:
Jason Brook is the author of The Ultimate Step-by-Step Guide to Day Trading Penny Stocks. His website can be found at http://www.daytradepennystocks.com






Published at Jul, 27 '06 , Read 3035 times.

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