Trading Risks

The focus of understanding pennystock trading risks is to make money. . .

The investment strategies revealed on this site automatically prevent you from being a victim of most trading risks associated with penny stock investing and place you in the advantageous position to take advantage of the risks others take for consistent profits with penny stocks.

You take advantage of marketeer campaigns as well.

Here is how You take advantage of the risks others take for consistent, safe, huge profits time and again

All this is possible because the Extraordinary Investor Strategy is to target, screen, research and invest in high quality sleeper penny stocks with the greatest potential to explode in value soon.

  • You will invest before a rocket stock trend occurs, thus minimizing risks of the stock plunging in price. You put yourself in the advantageous position of taking advantage of marketeer campaigns as they begin.
  • You will take advantage of the risks other traders take when they buy up shares of a stock at inflated marketeer promoted prices, long after you bought your shares as sleeper prices.
  • You will then safely and easily sell your shares as the prices begin to waver, forming a top. Plenty of buyers will be available to buy up your shares as you sell.

Even so, naivety regarding pennystock trading risks means that you will eventually fall victim to their siren call.

You must be able recognize and understand potential risks associated with penny stock trading so that you do not become their victim. That is the purpose of the subtopics of this topic - pennystock trading risks.

Accurate knowledge about potential risks, and by learning proven investment strategies specifically designed to limit risks associated with penny stocks, is imperative.

Through proper knowledge that this site is providing, you are learning how to diminish potential risks and to take advantage of the risks of others in pennystock trading. The result is consistent success trading explosive trends in penny stocks. That is the purpose of this site.

In this new topic called; Pennystock Trading Risks, are several subtopics that reveal some of the most powerful trading risks of penny stock investing. I say "powerful" because these are the risks that will break most traders of penny stocks over time.

Here is a list of the subtopics you will be studying under this Topic:

  • The Pump and Dump - Even high quality sleeper penny stocks are victims at some point. Such stocks are a marketeer's dream.
  • The Dump and Pump - good penny stock companies that may be struggling are prime targets of the marketeer basher in this type of risk.
  • Stock List Scams - how to recongnize stock list scams and stock pick scams.
  • Penny Stock Trends - trading the trends is risky for most.

The Investor Advantage

Besides the above risks, improper screening, study and research of stocks is the foundation for all pennystock trading risks.

This whole site is dedicated to showing you how to target, screen, research, and study high potential sleeper penny stocks correctly.

Such proper study is paramount to obtaining the Investor Advantage over all other traders for consistently huge profits unlike any other financial market.

In Humility, open your mind to the proper knowledge this site is revealing to you.

97% of penny stock traders are victims of many potential pennystock trading risks because they lack the proper knowledge of the extraordinary investment strategies as taught on this site.

Since the Extraordinary Investment Strategies are so essential

  • to avoid almost trading risks
  • create low risk high profit trades

then, I will now briefly review on this page the extraordinary investment strategies revealed on this site so far.

Extraordinary Investment Strategies - Review

To earn consistant profits in penny stocks requires that you understand and experience the following Investor Strategies of Successful Penny Stock Investing...

Minimize Trading Risks and Losses through

• Accurate Knowledge

• Proper Mindset

• Philosophy and Experience

Accurate Knowledge is obtained by first learning the proven strategies of successful penny stock investing as revealed on this site.

Secondly, Accurate Knowledge is then the ongoing research of a target stock within the framework of the following data fields of study:

the economy - penny stocks are sensitive to economic conditions more so than other types of stocks because they generally do not make a profit and require financing to continue operations and development. 

investor and public interest in a given sector of stocks

investor and public interest in a company within that sector of stocks.

study of a company's management (thrifty, adaptable, knowledgeable)

product developments and progress (stage of development, patents, safety, effectiveness, novelty, interest, demand and value to meet broad needs) in comparison to the competition.

SEC financial data, quarterly and annual reports, and news articles and releases from several sources. Debt is okay. No profits is okay. What you are looking for is overwhelming debt. You will learn just how overwhelming by reading the financial reports and news.

Financing options, alliances, collaborations, partnerships

Review of its current debt liabilities short and long term. You do not want to be stuck holding a great stock that is unable to obtain acceptable financing or has total debt that is overwhelming in comparison to total assets. If the debt of a penny stock is great and market cap is below 10 million dollars, and is still developmental, the company is distressed and will unlikely obtain future financing on acceptable terms. The company will not continue to operating sometime in the not to distant future.

reverse stock splits - history of (how many if any). More than two reverse stock splits in 5 years is not a good sign, but look at all other technical and fundamental data to be sure. If the company is genuine, you will learn of its ongoing novel high demand product developments or exploration.

competition - are other companies developing similar products.

marketeer involvement - promoter or basher.

historic share price levels over at least a 3 year period - is it trading at a low historically or at a new higher low with strong downside resistance?

Accurate Knowledge is paramount to avoiding pennystock trading risks

All of the categories and more that were just outlined must be studied together so that your mind gains accurate knowledge of your target stock. This is not difficult, time consuming or complicated once you know how to do it.

Don't let other traders or media fool you into believing this is time consuming and of little value. These are the Proven Strategies that will make you huge profits time and again. If you are afraid of a little work, then think of how much work you are presently doing at your job day after day for years and years. While I respect a good days work at a business, that is definitely not the way to make money.

You want to give your mind enough accurate knowledge to make accurate decisions about the future potential of a company - to read between the lines and peer into the future success of the company of focus.

By doing this complete study, you:

• diminish trading risks in your investment decisions

• create low risk high reward decisions in your stock investments.

Proper Mindset

• Patience,

• interest in your chosen sector of stocks

• the desire to learn about product developments in your sector

• a desire to become part of the process of evaluating the success of a company and its products.

• You must be determined to always follow a structured outline of evaluating each target company based on all categories of research this site teaches - no sloppy research ever!

In these ways you avoid penny stock trading risks that most others take, and you will profit from their mistakes. This site supplies what you need to accomplish this.

Philosophy that is founded in Love, which is True Wisdom.

If you develop this philosophy, then your mind and emotions become centered on learning and comprehending the true value of a company and its products to fill the needs of the public with safety. Emotions work in your favor with correct attitude, research and philosophy.

The correct philosophy is the essential foundation on which all other investment strategies hinge. Developing this correct philosophy through experience will go along way in

  • intimately understanding the market
  • avoiding pennystock trading risks
  • taking advantage of the trading risks others take
  • targeting and studying stocks correctly
  • promoting emotions that work in your favor

for consistent low risk, high reward profits.

Experience using the investment strategies as taught on this site is vital - but only if used as directed. Learn it correctly the first time, having trust in what this site is teaching you, and the experience will create in you the talent to be an extraordinary investor over time. You will make ever greater successful trades and your losses will diminish.

Minimize Pennystock Trading Risks and Losses by investing only in those penny stocks that, after a complete study of the companies behind the stocks, are trading at a bargain and have the most excellent potential to explode in value rather than dropping in value.

You will understand what to look for as you continue. Essential knowledge has already been provided and repeated on previous pages on this site. Your mind is being fed what it requires to understand all this.

Trading at a Bargain:

This is the buying of super high potential stocks that have share values that are at historic lows over at least a 3 year period taking into account all other data as described in "Accurate Information".

Trading at a bargain also means: 

Buying shares of those super high potential stocks that are experiencing new higher lows that will not likely be crossed again because of ever greater investor and public recognition of the company and its products as being truly superior over the competition with great safety. In such cases, invest in such a company when the share values cycle lower - to the new higher low.

Trading at a bargain also means:

Buying shares of a high potential stock who's shares have recently plunged to exaggerated levels based on negative news on an otherwise super penny stock.  In this case, a rebound from that plunge will happen quickly.

You will know when a company is trading at a higher low by

• examining the success of its product development,

• successful financing

• technical data showing a bottom - a firm resistance at a certain share price that historically has not been crossed over a 3 month period.

• technical data revealing a recent plunge in value on a high potential penny stock - find out why it happened and invest appropriately.

Use this information in combination with all other fields of study previously listed on this page to feed your mind of understanding the accurate knowledge it requires to formulate successful trades.

Penny Stock Trends commonly cycle higher and lower repeatedly.

This cycling of share price trends, which averages 30% to 60% for a super high potential penny stock, may repeat 3 or 4 times within a year or more before finally trending at an even higher low.

The cycling down of share prices to the bottom, or resistance 

This is common and happens for some important reasons:

• marketeer basher involvement

• prolonged lack of news updates

• uncertainty over the financial future of the company

• uncertainty over the economy

• dismal economic conditions

• mass creating of shares for financing further research

• reverse stock split

• uncertainty and concerns over product development or safety issues

• New competition threatening the success of a companies product developments.

• Marketeer campaign has come to an end.

These are the ten (10) main reasons traders may temporarily or permanently take profits or losses and invest in other stocks. Such incidences will temporarily or permanently cause the stock to cycle/trend lower and eventually to its bottom resistance.

Always look for updates on all points listed above. New developments can change things quickly - be ready!

Eventually, as more news finally comes out, even more investors than ever will be convinced of the growing success of this company and invest, that is, if the company and its products remain truly outstanding. You will know this is the case by continued company research as taught on this site.

By gaining all this essential knowledge ahead of time, you are feeding your mind all that it requires to more fully understand the potential of a company and its share prices and thus avoid many pennystock trading risks.

NOTE: Be aware that frequently, just before a major trend up, the share prices may briefly trade below the bottom resistance. Hold on to your investment, unless you overlooked an important category of research. Re-evaluate, but don't sell just yet unless you discover an error on your part.

The Mysterious Sixth Sense of Successful Penny Stock Investing

Through complete research as this site is showing you, you are developing a sixth sense of successful penny stock investing for that particular stock... You are able to accurately peer into the future of the company and also avoid many unforeseen trading risks that so commonly affect most other penny stock traders.

In essence, you are developing the Mysterious 6th Sense of Extraordinary Penny Stock Investing.

Potential to Explode in Value - Rocket Stocks:

By following the investment strategies as reviewed here and throughout this site, your mind is able to effectively sense and foresee a stock's potential to become a rocket stock while at the same time avoiding the pennystock trading risks other take, and using their mistakes to your advantage.

Minimize trading risks by always placing Limit Orders (setting a price per share you desire to buy) - never a Market Order (purchasing shares at whatever price they are currently trading). This rule must be applied to all trades with penny stocks no matter where they trade, but especially on OTC stocks.  

Maximize Potential for Explosive Profits by accurately locating and planning stock trades with the greatest potential for explosive trends before they begin. Accurate knowledge, Proper Mindset, Philosophy and Experience are essential for consistent low risk and highly successful penny stocks investing.

Warning! Placing Stop Orders (setting a price to automatically sell shares at a loss to prevent losing more) is risky because you will likely get stopped out of a good trade. Penny stocks shares commonly dip in value up to 20% before exploding with a vengeance. I think this is a planned strategy of Market Makers - to stop most traders out of a super trade for the Market Maker's own advantage to make money.

Have faith in the research you have done so that, even if the stock does test its lows in share prices, which they frequently do, you know the stock must explode in value in the near future.

When the insecure traders get stopped out at a loss, you will remain and will ride the trend up in due time. This must happen if you did your research correctly, knowing what to look for and how to use the knowledge once gained. You are already invested at bargain prices on all your trades. All this is being explained to you on this site.

This is not day trading.

If you are interested in day trading, this site is not for you.

Extraordinary investing is a whole new ball game that focuses on specializing in a sector of stocks and specializing in your target stock. That is how millionaires are made.

Professional Investing is a Business

You are in the business of locating penny stocks that are about to explode in value and then investing in those stocks for the greatest possible rewards.  

As you continue to study the Investor Advantage will will learn how to avoid most pennystock trading risks, and take advantage of the trading risks 97% of other traders take for consistent low risk profits. That is what successful penny stock investing is.

This task can only be accomplished by being a specialist of your target company within the broader market conditions using the investment strategies taught on this site.  Once again, the key to consistent profit is to avoid costly pennystock trading risks, and take advantage of the risks others take.

No other type of investment rewards you so generously for your efforts with so little risk or up front investment.

You have completed this introduction to:

Pennystock Trading Risks

When you are ready. . .

Next Lesson: Penny Stock Scam - the Pump and Dump

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