Penny stocks are the last legal investment frontier in which an Extraordinary Investor can make up for financial losses for past mistakes and misfortunes and gain it all back again over and over and become wealthy faster and easier, with less risk and stress, than any other investment vehicle...
to live the life hoped for and do the things long desired.
In essence, Penny Stock Investing is the best home based business in the world for the Extraordinary Investor.
These highly successful investment strategies of penny stock investing are the secret that only the Extraordinary Investor understands and utilizes for that success to be realized. The safest of these strategies are being taught to you on this site.
To be blunt, the secret system of investment strategies as now revealed on this site is the Holy Grail and the Sacred Cow of Penny Stock Investing that only 3% of investors know, understand, and utilize for success.
Who is an Extraordinary Investor?
This designation pertains to about 2% - 3% of penny stock investors and their unique methods of investing that are far more successful than any other form of stock investment in existence.
The Extraordinary Investor is the penny stock investor who has mastered the unique skill and art of:
The Extraordinary Investor...
• utilizes a scientific system of investment strategies that is overlooked by most traders for reasons that were summarized in my personal introduction and will be discussed and defined in more detail.
This type of trading is usually for the short to medium term - within a day up to several months to complete a trade.
• Represents each one of those penny stock investors who are humble, adaptive, creative, focused and disciplined in their study of each company underlying a penny stock within the construct of all available and pertinent fundamental data and primary technical data - not as difficult as it sounds.
• Will take all the time needed to do whatever study is necessary to locate, confirm and reaffirm in his mind of understanding a sleeper penny stock that possesses the highest potential to explode in value before making that final unregretful decision to invest.
• May realistically only need to make 3 to 15 trades per year to double or triple his investment or far more; so, time is best used to screen, study, understand, target and then invest in those penny stocks with greatest potential to become rocket stocks using the complete system of investing taught by this site...
• Is a fundamental trader (defined later) who also uses basic technical data as an aid to help accurately understand the value of the companies of focus and confirm fundamental data whenever possible.
Whenever possible, technical analysis is consulted to help confirm fundamentals in the following ways:
All of this will be explained later.
The Small Investor who is an Extraordinary Investor has the Advantage in Penny Stock Investing over Professional and Institutional Investors.
In small, medium to large cap stocks, the institutional and professional traders have the advantage of technology, trading capital, years of trading, peer connections, and VIP sources of news before its published.
But these advantages are liabilities when trading penny stocks.
The small investor who specializes in trading rocket stocks has a distinct advantage in the realm of penny stock investing...
The following are important reasons for this advantage:
Penny stocks are rarely followed by institutional investors such as mutual funds and most professional traders because. . .
• penny stocks cannot handle hundreds of thousands of dollars in trading volume of professional investors without potentially making the share prices shoot sky high or drop off a cliff.
• professional investors incur extreme risk potential when attempting to sell shares worth hundreds of thousands of dollars in most penny stocks - especially if the trade goes against them.
• trend trading strategies that professionals use with small to large cap stocks do not work to target rocket stocks.
• those VIP traders who do use their special sources of info and powerful technical software and wealth to invest in penny stocks are almost always invested in such stocks AFTER the Extraordinary Investor bought all the shares they desire.
Why?, because the Extraordinary Investor "Reads Between the Lines" to look at the long term potential of a penny stock company before VIP traders consider it.
Due to these facts, the Extraordinary Investor has little competition with those VIP traders even though professional traders may be privy to news before it's printed and who utilize the most powerful technical software programs.
Technical trading is flawed in discerning future explosive moves of penny stocks.
The reasons will soon be detailed. For another good review of the flaws, See: Technical Analysis Disadvantages.
Therefore, Technical Trading used by most professional traders, swing traders, and most independent traders, novices and pigs (defined later) is flawed when used with trading rocket stocks.
Here is why technical trading is flawed with Rocket Stocks
• Explosive trends in penny stock prices are created extremely quick on many types of news, fundamentals, and marketeer promotions that would barely make a ripple in the highly traded medium to large cap stocks.
• Not enough time is available to create technical signals until it's too late - not enough time to identify, screen, plan, prepare and invest from such technical signals. Why? Because most investors are uneasy about penny stocks, and will only invest in them when media sources and marketeer campaigns promote them.
• Many false technical signals are created because of news events and mass media promotions that commonly make obsolete technical signals and patterns especially when attempting to locate an explosive trend in a stock.
• Technical data cannot discern, or take into account, the quality of the company behind the penny stock.
For instance, since penny stocks have no PE Ratio or sales or profits, and are usually in huge debt, then no stock screening software or program can discern the real value of penny stocks.
How to Discern the Explosive Value of Penny Stocks
The explosive qualities of a penny stock, before it turn into a rocket, can only be accurately discerned by a complete and correct fundamental study of a company coupled with basic technical data as this page earlier outlined, and experience.
Basic categories to study that create value for penny stocks are the following:
management qualities, financing and financing options, alliances and interested parties, patents, intellectual property, products in development, company history, marketeer involvement, competition...
All this, and far more, will be explained in detail, and will be repeated and tied in as you continue.
Technical analysis and stock screening software cannot give you this essential insight into the quality of the company and its future potential. Therefore technical patterns are flawed and will end before they begin a trend.
Only Fundamental Research reveals the true and potential perceived value of a penny stock company.
For these reasons, the technical traders are at great risk investing in penny stocks.
The Extraordinary Investor has the advantage of trading penny stocks over most other penny stock investors.
Penny stocks draw more pigs, novices and other small technical traders like a magnet than any other investment because of the enticement of potential huge profits with small investment capital.
Most of these types of penny stock traders are followers that jump into a trade based on scam media tips or technical signals after a rocket stock trend is well under way or near its completion - which does not take long.
Plenty of pigs, novices, and small technical investors will be trading who are ripe to give what money they do have to the penny stock market - money which you will pocket when you sell your shares to them near a top.
Such increased investor trading provides liquidity to the stock of interest. The Extraordinary Investor has no trouble selling when plenty of other follower investors are ready to buy up the stocks you sell.
The Extraordinary Investor profits tremendously from trading penny stocks by taking advantage of the risks of 97% of the other various traders mentioned.
Any piece of news can alter the share value of a select penny stock significantly and quickly, but will not affect others.
Some penny stocks will actually plunge on good news.
Why? Because the good news was not as good as expected.
Experience using the EI strategies in trading will help you get a good sense for understanding how different types of news affect the share values of various penny stocks.
The extraordinary investor understands what will happen because he/she has studied the facts/fundamentals, and has developed a keen sense through experience.
Most small penny stock investors are technical traders and so have little awareness or understanding of the companies that are most affected by news and media and Marketeers. Since many penny stocks are not high quality, technical traders really take a big risk trading on technical signals alone.
Most stock traders in the Dark
Most investors do not know how to identify, locate or follow penny stocks ready to explode in value - the rocket stocks - from the thousands of other penny stocks.
They don't know where to search, or what to do to profit. That is why most stock traders are followers and victims of the many penny stock marketing scams flooding the internet.
Other penny stock fundamentals to watch for are things like news of product developments and testing, exploration success, management qualities, new alliances and/or financing partners, financial status, and/or major sector trends, the economy, politics, etc.
You will learn this all in more detail later, and is repeated again and again, so this all becomes part of you.
The Extraordinary Investor Rules the Realm of Penny Stocks
In summary, such Investors inherently have the odds stacked in their favor when investing in penny stocks for the reasons listed above and more.
This site was designed to provide all the knowledge you require to Empower you to become an Extraordinary Investor - to become victorious over most other traders of penny stocks for massive profits!
You have completed this sub-topic Extraordinary Investor.
When you are ready, please click on the following link: Investment Philosophy, which reveals the mindset necessary for successful investing - mindset is extremely vital to reap huge consistent profits from penny stocks... Investment Philosophy