Technical Trading

NOT for Penny Stocks

Technical trading of penny stocks is always extremely risky.

  • Technical Analysis is essential for all trading on the financial markets, including penny stocks.  
  • Technical Trading of penny stocks is risky.

I learned through experience that select high potential penny stocks - the future rocket stocks - unlike other stocks, eventually become targets for mass media to promote.

As well, many high quality, high potential penny stocks are ripe to rocket upward on any good news from a press release or other exciting news.

Such stocks commonly explode in value or plummet in value based on just one piece of fundamental news before technical triggers form. . .


When mass media is involved, then marketeer advertising already prepares the minds of thousands of stock traders to buy or sell at such a time as that.

Technical signals commonly point to the exact opposite trend of the explosive move that is about to occur because of little to no technical indication that a rocket stock will happen. Such explosive moves, therefore, create extreme risk for the technical trader.

So there's a difference! . . .

Penny Stock Investing vs. Penny Stock Trading:

Investing: The extraordinary investor will do as the stock promoter will do, which is to study the fundamentals of a penny stock company to see if it has great potential for promotion to investors and traders...

The extraordinary investor, therefore, will invest in companies underlying penny stocks that are still trading at historic lows, and have great potential to be promoted by marketeers. Only this strategy will result in low risk consistent explosive profits from rocket stocks even if the investment is short term.

Technical Traders of penny stocks use technical signals without fully understanding the company behind the stock - blind risk that creates losses and dismal profits.

Since 93% of penny stock traders are primarily technical traders, novices, and half-baked fundamental traders, then the extraordinary investor of penny stocks automatically becomes King over the penny stock market.

Professional traders make up 5% of traders normally fooled by rocket stocks. These trader too will give their money to you.

This is what I meant about taking advantage of the risks others take. All this will become clear as you read on.

INVESTING is for Penny Stocks vs. TRADING for other securities

Technical Analysis - an essential aid to trading/investing in any financial security

I well understood that basic technical tools and data are essential for any trading or investing - that is granted.

But I also learned that most investors are sold out on the fad of technical trading of securities.

Most investors are inherently followers; therefore, such investors do not understand or consider solid and complete fundamental analysis. And that is why the rocket stocks of the penny stock market will always remain extremely risky for most investors - they know not what they are investing in. . .

The Investor's Key to Successful penny stock trading is a system of complete fundamental analysis supported by technical analysis, rather than technical analysis dominated trading.

Penny stocks are a different animal, requiring a different method to capture their profits. Successful Penny stock investing, unlike other securities, relies on complete fundamentals.

• Do you dive head first into a lake without knowing how deep the water is, what kind of creatures, poisons, diseases exist there, etc?

• Do you walk on an iced over lake without knowing if the ice will hold you?

• Does a nation wage war with another nation without wisely determining its potential to win the battle based on all available data?

• Does an oil company drill for oil without in depth research of the potential to strike oil?

Unlike other stocks, penny stocks must be carefully studied for potential, because so many of them are duds and scams.

The Making of a Millionaire

The Making of a Millionaire is dependent on Specializing:

Neither should You or I invest in penny stocks without understanding the market in relation to companies behind the stocks - to specialize in a sector of stocks and in the stock of your focus...

This is how millionaires are made.

Believe me, this is not as tedious or as difficult as it sounds once you learn and use the correct process of research.

Anything less than specializing is needless risk taking, and such investors will lose out on those explosive profits in rocket stocks. Remember, this really is not as difficult as it sounds if you know how to do it correctly. All this I will show you.

You have completed this subtopic called:

Technical Trading - Not for Penny Stocks

In the next section, you will learn how my new ideas developed into a full fledged system of penny stock investing that works!

Please continue onto this next section to learn about the extraordinary benefits of the new strategies I share on this site by clicking on the following link: Investment Success