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The Penny Stock Game Plan
What is it? That's simple! We're here to learn how to make money buying
and selling penny stocks. You'll learn how to recognize these stocks
and you'll do your own analysis of each one individually. Yes, you'll learn to make your own decisions.
You won't be having any telephone conversations with fast talking stock brokers. You won't be buying any Blue-Chip Wall Street darling stocks. You're going to be spending your time searching out solid small company
penny stocks that sell for five bucks or less per share.
About 50% of the penny stocks that I buy cost less than $1.50 per share while
about 20% fall into the $1.50 to $3.00 range, and the other 30% are in the $3.00 to $5.00 range. Stocks in this price range have tremendous potential to move to the upside and make you some serious money.
And like all stocks, they have the potential to move to the basement and leave you with a loss. You'll learn how to limit that possibility and protect yourself with special buy-sell instructions placed at the time you order. There's no way to totally eliminate risk .. other than doing nothing.
The stocks you'll be looking for will be penny stocks, temporarily out of
favor with the market in general, and specifically out of favor with active investors. These will be fundamentally sound companies that have shown themselves to be serious contenders in their specific field of business.
These stocks will be trading at, near, or below, their (52 week low) trading ranges. You'll be buying these specific stocks when no one else wants them. These will be stocks that tend to cycle up and down once, twice, or maybe even three or more times a year, off that wonderful 52 week low.
When you buy these stocks you might decide to dig in your heels and hold on to it for a month, 90 days, six months, or maybe even a full year. You'll more than likely own a 1000, 5000, 10,000, or even 20,000 shares or more of a particular stock.
You won't be losing a whole lot of sleep, because you will have done all of your homework .. before the purchase.
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