Making a Quick Profit on Stock

When you make a stock purchase you need to have some idea about
how you're going to enter and exit the trade. What this means is that you
need to make up your mind as to whether you plan to take a quick profit
on the first little move, or whether you'll hold on for a longer period.

The main reason that you're investing in low-price stocks is that you'll be
controlling a large amount of shares. This is how you multiply your profits.
Another equally important reason is that low-price stocks can double or
triple in price much easier than an expensive stock.

A stock that cost just $0.50 per share can move to $1.00 per share much
easier than a $50.00 stock can move to $100.00 per share. The $0.50
stock that moves to $1.00 is a 100% move. Always think of your profits in
terms of a percentage. Very few investments make 100% moves.

It's not uncommon to see many small stocks make price moves of 200%,
600%, 1200%, and higher. Like I said earlier, if you're not invested it'll
never happen to you. By owning large numbers of shares you're putting
yourself in a position to make big profits on small moves.

If a big expensive Blue-Chip stock jumps up a quarter or a half a point in
one day, that's just not a big deal to folks like us. Most people can't buy
enough shares of an expensive Blue-Chip, for even a two or three dollar
move, to make them any real money.

$5000.00 buys 5000 shares of a $1.00 stock.
5000 shares X a $0.25 price increase = $1250.00 profit.
$1250.00 profit divided by the $5000.00 purchase price is a 25% return.
This does not reflect the few bucks it takes to buy and sell the stock.

Where else can you get 25% on your money? Where else can you get
25% on your money in just a few days, or a few weeks, or a few months?
That 25% could just as easily have shot-up to 100%, 600%, 1200%, or
more, in a very short period of time.

It's very easy to see that owning low-price stocks is one of the best ways
to increase your wealth within a realistic period of time. If you'll always do
the fundamental analysis before you by any stock, you'll greatly reduce
the possibility (although not completely) of taking any big losses.