How to Buy Penny Stocks Cheap!How to buy penny stocks when share prices are at their lowest levels. You can purchase penny stock cheap and sell it for big profits. Make your penny stock fortune and get rich!
Photographic Print Penny Stock PricesMasterprint It resembles a roller coaster track. Prices move along the ground (stage 1)for a time before beginning to climb a steep incline (stage 2). Eventually the price will peak at stage 3 (also called a penny stock top) before falling sharply (stage 4) back to the bottom of the security's price range. Penny stocks that trade in this fashion are absolute gems! The stock chart practically tells you when to buy them and when to sell them.
This is the hardest part of this strategy for purchasing penny stocks cheap. I wish I could tell you a fast, easy way of doing this but I don't know of one. Perhaps if you have a penny stock screener penny stock software which will look for certain chart patterns, that will speed the process up. I am not that sophisticated. I find them the old fashioned way. I just keep pulling up charts of different penny stocks until I see the pattern. This may sound time consuming to you but I rather like doing it. It's a lot like a treasure hunt. 19 out of 20 stocks that you look at will not display this pattern. Most will either be in an uptrend or a downtrend. You want to uncover penny stocks which have a clearly defined trading cycle because this is how to buy penny stocks cheap. It rarely takes me more than an hour or 2 of searching to find one of these treasures. When you think of the profits these fast rising penny stocks can add to your stock portfolio, you'll agree with me that this is a smart way to spend your time. Good Penny Stock for This StrategySkinny Nutritional Corp. (stock symbol SKNY) between March and October of 2009 is a good example. Had you bought it between March 13-19 for say .07 cents a share, you might have sold it for .10 cents on the 20th or 12.5 cents on the 23rd. You would have made a 42-78% gain in just days.If you watch the lows after the stage 4 decline around the 6th of April, you can see that .10 cents is the new low (the share price keeps returning to this level). Trading volume was still good enough for you to have put on another position at that price which you could have sold on April 16th when SKNY was in a stage 2 incline for .15 cents. You would have taken a 50% profit in less than 2 weeks.If you had bought in again on April 29th, when it looked like .13 cents was the new low, you would have taken a loss when the share price fell through the 21 day moving average support and bounced off the 50 day. How big a loss? Depends on how low you set your stop loss order on the stock. I point this out to show you that there is no way to trade penny stock online without taking losses. All penny stock trading systems generate a certain percentage of losing trades. If anyone tries to sell you a penny stock trading system that wins every time. Run. So always protect your positions with stops when trading penny stocks or anything else. That's how to buy penny stocks without losing your shirt if the trade goes against you.
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