A “penny stock” is a very low priced stock, typically trading under $5. The reason they are valued so low is because, well, they aren’t worth that much. People have dreams that their $0.25 penny stock will become a $600 Apple, or Google. The chances of any particular penny stock exploding is very, very slim. In fact, the chances of a penny stock becoming a “rocket ship” is one in thousands.
My advice is don’t trade penny stocks. Even if your Uncle Fred has a “hot tip” on a “penny stock,” the chances of that tip being breaking news is remote (not to mention that trading using inside information is illegal).
Another reason we don’t trade penny stocks is that institutions don’t trade them. Institutions (like mutual funds and pension funds) are the engine that drives stock prices. In general, institutions don’t pay attention to stocks valued less than $10.
Penny stocks have low liquidity (hard to sell to someone else), have large spreads, and usually trade on the “pink sheets.”
Our system is designed to uncover the stocks with both the very best fundamentals and the best technicals and buy them (and sell them) at the exact right times.
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