Making Money With Penny Stocks
A couple of weeks ago Money Philosophy thought it would be a good time to get back into the stock market game after having been out of it for a few years. Money Philosophy was immediately drawn to stocks such as GM & C which had taken a huge hit since the markets fell through the floor in the fall of 2008.
His GM and C picks were extremely successful and that got him into looking for other stocks similar to them. He came across a couple of microcap stocks, CTIC and LJPC, that looked like they may break through in a similar fashion.
That ended up being correct as both CTIC and LJPC ended up being big winners.
He decided that he may really be onto something with the way he was choosing these stocks so he decided to try and create a stock screener which would find more penny stocks like them right at the moment before they were about to have big gains.
The reason I’m writing this blog post right now is because his first stock buy with this new screen reached a high 30% above it’s open today and that certainly impressed the heck out of me. My imagination is off and running with the huge gains I could make by following his stock picks.
Obviously I don’t expect every stock pick he makes to have big gains. That’s impossible. It’s also key to know that a gain isn’t “official” until you sell the stock. Making the decision of when to sell is just as important as deciding when to get in. The really cool thing is that he also makes a post on his blog (and on his Twitter account) when he sells his holdings.
He does not share exactly how he screens for these stocks as I guess he’s a little too selfish to share all of his secrets but he shares much more than most do.
Of course he does not suggest that anyone should buy his picks. There is actually nothing to gain from that. You should always do some of your own investigating before buying stock.
Consider this: I think it’s always a good idea to “trade on paper” before you start using real money when starting up a new strategy.