Penny Stock Risks
Not what you think!

Penny Stock Risks - Real or Fake?

Penny stocks obviously would not be the best stock investments if they were inherently risky.

What do you think?...

Are penny stock risks genuine or real?

Are they risky investments?


Since 97% of all penny stock traders lose money or make mediocre profits, the obvious conclusion is that penny stocks are very risky. They are risky for 97% of the penny stock traders.

Most people would say that penny stocks are high risk investments. That is what many investment sites and services are propagating. I use to believe this.

I disagree regarding the risk, and I can say this from experience.

Penny stocks in themselves are not high risk investments. The risks are 95% the result of inadequate and inaccurate knowledge, experience, and understanding of penny stocks and penny stock investing by most investors and traders.

This site is showing you why if you've been taking this journey to successful investing.

What about all the scams involving penny stocks?

Knowing about the scams and how they work, and how to profit by them, is a penny stock benefit not a risk.

The risk with such scams involves traders who do not know how penny stock scams work, or how to let such scams work in their favor.

Most traders are duped into becoming victims of such scams. This is unfortunate.

This site will inform you about the penny stock scams and how to recognize them. You will learn their strategies that lure traders into giving their money to the market.


This site then shows you how to

  • avoid the risks associated with these scams
  • turn these risks into profitable trading strategies
  • take advantage of the risks other traders take for huge profits.

False info about penny stocks promoted everywhere

Much of the false information and suppression of information that creates penny stock risks for investors is promoted by

  • mass media,
  • those ignorant of successful penny stock investment strategies,
  • technical traders either by ignorance or intent,
  • marketeer scam artists.


Most penny stock traders are followers.  They listen to the hype and half truths and are duped and programmed into believing what others tell them.

Mass media itself falls into two categories:

• Those that profit from other traders by promoting fad trading systems at the expense of more successful investment strategies. Such promotions prevent and even scare traders away from learning the successful strategies of investing in penny stocks. Penny stocks thus become high risk for those who listen to the media, because their fad trading systems will not work.

• Those called stock promoters, who's job is to promote stocks to the public in what are commonly called pump and dump schemes. They masquerade as your helper, when all they are really after is to scam you out of your hard earned money. Such schemes take advantage of the ignorance and fear of most investors in penny stocks.


Both these forms of marketeer involvement support each other successfully by programming investors to

  • look at penny stocks as highly risky
  • seek the help of marketeers, whom they feel may help them successfully reap the huge profits from penny stocks.

But, they will fail!

The marketeers profit from gullible traders by all these deceptions in a number of ways, for instance:

• direct purchase of their products and services (newsletters, lists, programs, software, books, robots)

• convincing you to trade in stocks they promote to you in newsletters, websites, faxes, telephone calls, message boards, and other social media channels.

Obviously not all newsletters, lists, programs, or even stocks are frauds, but 99% of such products and services on the internet are only concerned with what money they can suck out of you by offering products and services that appear helpful.

If they could make money legitimately, they would

  • not be selling you their products at outrageous prices.
  • not be promoting stocks with their scam media campaigns so they can take your money.

You can avoid most penny stock trading risks by

• NOT listening to the media about penny stock investing

• Studying the Historically Proven Investment Strategies of the Extraordinary Investor as taught by this site. . .

. . . I hear or read nothing to very little from mass media about the investment strategies as taught on this site. Most of the information I read explains only bits and pieces, or are just plain inaccurate.

You realistically have no other choice but to become Master of your own penny stock trading. The purpose of this site is to make You a Master - no longer dependent on those blood suckers.

Any unsuccessful investor and any novice of investing with

• average comprehension faculties

• the ability to read,

• basic understanding of web browsers and their use to find info

• a basic knowledge of the mechanics of trading stocks

• the humility to realize he or she needs help and will accept that help

• the open-minded commitment and faith in this site to read it completely from beginning to end and let this site speak to your mind its secrets

will develop what is necessary to trade penny stocks with consistently far greater success than any other system of trading. To become Master.


Because what you are now studying are the secret penny stock strategies of 3% of the most successful penny stock traders - the Extraordinary Investors.

All those who learn the investment strategies contained on this site will recognize, avoid, and take advantage of, the penny stock risks of all other trading systems that I know of.

You will become an Extraordinary Investor by studying, practicing and utilizing the information on this site to trade penny stocks.

Which is a safer investment?. . .

• Penny Stocks

• Blue Chip Stocks


One of the major deceptions of investor media that Stock Market Basics totally trashes is that

• blue chip stocks are safe investments with long term growth

• penny stocks are to be avoided, except by high-risk investors, because of penny stock risks

Despite all the hype by media, the growing trend is that, whatever penny stock risks there be, actually appear less frightening or risky to increasing numbers of investors when compared to Blue Chips, or other long term investments.

The reader must understand that the days of long term investing in the stock market over decades for safe returns is over.

Economic and Political Instability . . .

Several major forces are all working together to create ever greater instability in the stock market as never before. And all these forces are intensifying.

What are these Major Forces? . . .

I believe the

• growing instability of the economies of the world,

• the unprecedented shift in companies created by the information/technology age, and international trade agreements, 

• dramatic intensity of political unrest among rival countries, religions, sects and regimes throughout the world,

are the major forces working together to create an unstable stock market.

Long term investments will become increasingly risky as the political scene, changing company profiles, and national debts of major countries continue to spiral out of control exponentially making long term investments ever more risky.

Penny stock risks pale in comparison to holding long term positions in any stock at this time.

More long term investors than ever are losing their life savings to failed blue chip stocks or mutual funds.

In times like these, one must update his investment approach for successful investing. . .

After all is said and done, I think you will agree that penny stocks are far safer investments in this day and age of economic and political instability once one learns how to take advantage of the penny stock risks others take for huge short term profits.

While most investors are being slaughtered in the stock market, a small group of extraordinary investors are earning consistently huge profits from penny stock investing in the stock market with minimal risk and stress.

Penny Stocks are innately explosive - rocket stocks

Penny stocks, unlike other stocks, are well known for their explosive trends that commonly average 5% to well over 300% profit within hours, days, weeks, to several months. These are called, rocket stocks.

Contrast these profits to making the same kind of returns over a 1 to 15 year time frame with long term blue chip investing or mutual funds! . . . that is, if the blue chip stock does not go under first like so many have done in the past several decades.

Mutual fund profits are dismal compared to profits earned from rocket stocks.

Short term investments - holding stock positions less than three months - is far safer alternative in the present and future growing instability.

Learning the investment strategies that consistently profit from short term investments in rocket stocks with minimal risk makes sense for the foreseeable future for the individual investor who's mind is programmed for success by the information on this site.

The next subtopic, Investor Programming, will explain how this site will program your mind for success so that you may earn consistently huge profits with minimal penny stock risks.

You have now completed this sub-topic on penny stock risks.

When you are ready:

Investor Programming for Penny Stock Investment Success

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