How The Penny Stock Market Works and How To Take Advantage of It
April 18, 2011 by staff
If you are looking to trade stocks for short term profits and have
the risk capital to do it, welcome, we are here to serve you.
The great thing is, once you understand this market, half the
battle is over and you are on your way to building your trading
account.
There is NO other market that we know of that offers so many
opportunities EVERY DAY.
Let’s get to what is important. How does this market work and
what do you need to do to make money in it.
Let’s start with a general question “Why do stocks go up?”
If you ask 100 people this question, most will tell you it has to
do with the quality of the company, technical analysis, fundamental
analysis, earnings or news.
The truth is they would be wrong.
Stocks go up when there is more buying than selling. PERIOD.
Those other answers may be contributing factors to why people buy
stocks but are not the reason stocks go up.
The reason I point this out is because EVERY DAY penny stocks that
are not high quality companies, have horrible charts, no financials
to speak of, and boring news make HUGE runs.
You need to get comfortable with the fact that when it comes to
penny stocks and making a profit, company quality has nothing to do
with it.
This leads us back to the question “what drives penny stocks and
how do I find them” and the answer is ……………
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