Making Money With Penny Stocks
A few weeks ago the admin at This Stock Pick Blog decided to get back into the stocks game after having been out of it for a few years. Money Philosophy was initially drawn to stocks like GM & C which had taken a huge hit since the stock market fell through the floor in September of 2008. These stocks looked like they were headed back up and he was excited about the chance that they may eventually reach their 52 week highs.
The C and GM picks were very successful and that got him into looking for other stocks similar to them. He ended up coming across a couple of penny stocks, LJPC and CTIC, that looked like they may break through with big gains.
That turned out to be correct as both LJPC and CTIC ended up being huge winners.
He thought that he may actually be onto something big with the way he was selecting these stocks so he decided to try and build a stock screen screen which would find more stocks like them right before they were about to have big gains.
The reason I’m writing this blog post today is because his first stock buy with this new screener reached a high 40% above it’s open today and that certainly impressed me.
Now obviously I don’t expect every pick he or anyone else makes to have big gains. No way. It’s also important to know that a gain isn’t “official” until the point where you actually sell the stock. Figuring out when to get out is equally as important as deciding when to buy. The cool thing is that he also makes a post on his blog (and on his Twitter account) when he sells.
He doesn’t share exactly how he screens for these penny stocks as I guess he’s too selfish to share all of his trading secrets but he shares much more than most do.
Of course he doesn’t tell people to buy his stock picks. There’s really nothing to gain from that. He’s clear that he is definitely not giving investment advice. And that’s an important thing to note. It’s always recommended that you do your own investigating before trading.
While it’s tempting to buy The Day Trading Robot or Easy-Forex.com, I honestly think you would have superior results just by doing what he’s doing. And of course the really awesome thing is that it’s completely free.
Remember: I think it’s always a good idea to “trade on paper” before you start using real money when trying a new stock picking strategy.