Trading Penny Stocks over Other Stocks - Advantages


Posted April 24, 2018 by WilburStewart

Penny stocks have a very different time table from traditional stocks. It is quite reasonable to expect very quick profits. In fact, in less than a day to only a few weeks it is common to see a 15% - 100% return

 
Penny Stocks Provide A Much Higher Profit Potential Than Other Stocks

This part is a no brainer and it is the biggest lure for trading penny stocks. They have far more profit potential than "traditional" stocks like the blue chips which have already been priced out to the maximum and are no longer in their growth phase. Even when a blue chip announces something brand new and exciting or comes out with a really great quarterly report, the movement is tiny compared to what you can get from a quality penny stock.

You Can Make a Sizable Profit Very Quickly

Penny stocks have a very different time table from traditional stocks. It is quite reasonable to expect very quick profits. In fact, in less than a day to only a few weeks it is common to see a 15% - 100% return - and an even higher return happens often enough that it's not THAT surprising when it happens. This may sound almost too good to be true if you have never traded penny stocks or you are accustomed to the pace of the traditional market. However, it is actually very common to be able to lock your penny stock profits within days.

Quality Penny Stocks Outperform the Blue Chips by a Long Shot

You know human nature can be funny sometimes. It doesn't matter what FACTS are staring investors square in the face, they'll still overlook the obvious and buy into whatever the "conventional wisdom" happens to be - which in the financial world tends to be what the "big financial boys" tell us it is. Okay, call me a rebel if you want but the facts show that quality pennies (excluding all the obvious scams on the pink sheets) outperform the blue chips by a long shot and they have been doing so for decades. While there isn't a reliable "penny stock index" per se, there are very reliable "small cap" indexes we can study (which represent approximately the bottom 3% of all stocks on the big exchanges which includes many pennies). Studying the difference between the S&P 500 vs. S&P 600, for example, clearly shows that the small caps outperform the big caps (including the infamous blue chips) for decades. In fact, this is even truer for during hard times like we're having now. If you pick and chose the best small caps/penny stocks, you can come away with incredible bargains and really make a killing in a very short amount of time.

You Can Be the "Cool" Investor On the Block

Trading penny stocks isn't traditional in any way so if you trade them you can be that "cool" investor using "taboo" methods that no one else uses - and you can impress your friends and family by making more money with these "crazy" techniques than what anyone else makes with more traditional methods. Trust me, if you are trading pennies (and doing so wisely) and your friends are trading in the more traditional way, they will all be eventually coming to you wanting to know your secret because you will be making FAR more than they are making.

The Best Penny Stock Deals Are Grossly Undervalued

You can think of the penny stock world like shopping in a bargain basement with price tags that have been slashed 50%, 75%, 90%, etc.... There are incredible deals all around and all you have to do is figure out which of the items are high quality.

You Don't Have To Tie Up Your Money For a Long Time

It makes sense for most people to set aside a certain amount of their income for a very long time in an investment portfolio for their retirement years. To tell you the truth, however, since I have found a very simple way to make consistent profits with penny stocks over a very short amount of time, this doesn't make any sense for me anymore. I no longer keep a portfolio focused with an incredibly long-term investment strategy. I set aside MUCH more for the future by taking that money and investing in penny stocks and then quickly cashing out my profits - then reinvesting a portion of that again and again. AND... I don't have to worry all the time about how the hard times and the various stock market "crashes" are killing my retirement fund like several of my friends. I've already locked in my profits!!

The Sweetest Deals Fly under the Radar

Penny stocks seldom get any news coverage and they don't get talked about on TV finance shows. This means a really sweet deal of a penny stock can go completely unnoticed by the masses which mean you can get in at a rock bottom bargain price. Through much study and trial and error, I have found that the best and easiest way to find these is through paid penny stock pick services that research these stocks extensively and have a consistent history of picking winners. Note, from my experience free picks are worth what they cost: ZERO - in fact, they aren't worth the time it takes to read about them. However, some premium picks cost very little and can literally make you a fortune without having to spend much time doing so. It is by far the easiest way I've ever made serious money.

If you need any help then consult with the experts at Paradigm Capital Management - a trusted small cap investing company. We at Paradigm Capital are focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance.

For more details, visit here: http://www.paradigmcapital.com/
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Issued By Paradigm Capital Management
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Categories Blogging , Business
Tags paradigm capital management , penny stocks
Last Updated April 24, 2018