The successful investor typically trades within the sector of stocks he is
• most familiar with
• most interested in studying
This ensures greater long term interest, desire, and love for investing and can help you from becoming lazy in your research - which is a common mistake. Successful investing is dependent on this.
The successful investor only watches and trades the stocks he can realistically devote quality time to.
How to begin finding killer penny stocks to trade.
Through complete fundamental research, and primary technical analysis, locate stocks . . .
• that have a history of 3 years or more.
• whose shares have appeared to nearly bottomed out within the past 3 to 7 years and/or are trading at a bargain.
• that are trading under $3.00 per share.
• that have an exceptional novel product line in development with little to no competition and/or appears far more effective and safe.
• that have a novel product or products in development within a market of very strong and broad demand.
• that have patents on their novel developmental products that are good for at least 10 years, or are working on improvements that will likely create an opportunity to apply for a solid add on patent(s).
• that possess exciting news (financing, partnerships, passing a major stage of development, etc.), or potential for exciting news, that will most likely send the shares soaring at some point in the near future.
• that have good relationships and financing agreements with agencies and/or other related companies that are sufficient to at least continue operating for the next 12 months, or will very likely obtain such financing for the next 12 months.
• that have attracted attention of government, military, public and other VIP sources with potential future agreements on the way for support.
• that are thrifty with their money and creatively adapt to challenging situations.
• Their SEC financial statements appear healthy - Debt that is not more than 3 times assets. For penny stocks, such debt is common. The intellectual property and potential FDA approval for drugs in research are the real values of the company - but only if such research and developmental drugs/vaccines are remarkable and have gained great interest and where there is great demand.
• that have favorable political policies in place to help receive financing.
This is basically what the successful investor searches for.
Find stocks like these, then do further in depth research to fully understand the company and their products in development before investing in any of them. This is all an important part of the equation for success, even though only the basics. This site will give you all you need to become a successful investor.
Generally, Never Hold Penny Stocks Long Term - over 3 months
• after purchasing shares of a stock.
• after an explosive trend begins of shares you already own.
Once you found that stock you feel will most likely explode in value the farthest with the least risk, it's time to purchase at the best price possible.
Once purchased, the successful investor holds shares of that stock and waits till an explosive trend emerges, usually not longer than 3 months.
Once the explosive trend begins, the successful investor holds shares of that stock for as little as 1 hour to not more than 3 months except in unusual circumstances before selling.
Do not hold shares of developmental stocks for the long term - unless:
• that company's high demand product(s) is/are ready to go to market, with solid marketing agreements in place
• the extremely novel and highly prized product(s) of the company has secured - or will likely secure - adequate funding to pursue development, with early tests showing such product(s) to be highly effective and safe.
In most other circumstances, holding a penny stock long term is very risky because too much can happen even if you think the stock will go up thousands of percent 3 to 10 years from now.
Too many developmental and exploration companies go bankrupt, or will not be able to secure the money to continue developing their products, over the long term - we are talking 10's of millions of dollars - especially in tough economic times.
Remember that financing is vitally essential to success for penny stock companies. Financing and stock trading in general will dry up in hard economic times.
The successful investor sells when the shares are completing an explosion in value (You will be shown how to do this later).
Free up your investment monies by buying and selling for profit quickly and then reinvesting in other super stocks that you uncover through your studies - or in the same stock if the share values plummet temporarily.
The successful investor continuously looks for opportunities to re-invest in stocks he is already familiar with that have great potential. In this way such investor becomes an expert in that stock and in the sector of stocks he chooses to concentrate on. And the experts in such cases are the ones who eventually become millionaires.
What has just been previously described on this page is an extraordinary rule of the successful investor that works the majority of the time.
Obviously, sometimes a stock may continue to go higher after you already sold, but don't let that bother you, because you minimized risk for yourself for the majority of trades. Remember, plenty more opportunities to invest always appear.
Remember, you can still continue to study a super fine stock and await other opportunities to invest in them for profits or even invest for longer term if products in development are unique, safe and more effective at what they do than anything else, and are in late stage development, almost near ready to go to market.
For the successful investor, these are the basic/essential ingredients to the recipe for success in very basic terms in selecting penny stocks to invest in.
You will be shown...
• how to find solid companies,
• how to know when share prices are near their bottoms or are at bargain prices
• what kind of news and other fundamentals are essential to determine if shares are set to explode in price at a point in the near future,
• when is the best time to sell after an explosive move in stocks.
Much more must be studied and applied to find the right stocks and invest in them, but what knowledge you have already gained is preparing you to be that successful investor - the Extraordinary Investor.
The reprogramming of your mind to be a successful investor is taking place.
Not all my trades sky rocket in value.
I will lose little or no principle investment if the stock is what I feel to be a killer stock after reviewing all the fundamental and technical data.
And I rarely feel I need to use stop orders as a safety net for selling shares because I invest in select stocks with shares that are near their bottoms and that have exciting news, or will most likely be promoted by marketeers. Locating bottoms in share prices is an art that involves fundamentals. This site will fully reveal how to do this.
Stop orders are risky in that you can easily be stopped out of a good trade as the share price may temporarily dip below your stop then rocket up. This is so common.
Newbies make Mistakes and so does the Seasoned Successful Investor:
As you begin using all the information on this site to pick potential winners you will obviously make mistakes by overlooking important fundamental data that warns of a potential move that other more experienced investors are aware of.
Do not lose heart when mistakes happens. That is part of the precious learning experiences you will encounter that will cause you to grow into a skilled and successful investor - an extraordinary investor.
Reading Between the Lines:
As you gain in experience, you will learn to read between the lines fundamentals that will most likely occur in the future with great accuracy.
Finding high potential investments can be like playing a good game of chess. You have to be able to figure in other possible logical angles or moves that could change the outcome. The ability to do this successfully comes with time and experience using this system of strategies.
The experience curve:
The system of trading I provide you is not complicated. This site shows you exactly what to do to succeed and take advantage of the risks of others. In this respect, the experience you need to become a successful investor is far shorter than for other types of traders and far less costly.
Almost all of the top 10% of stock market investors in the world have experienced every mistake one can make in trading and typically have lost hundreds of thousands of dollars over many years of trading before they gain the experience required to ever become successful top traders. This site is not set up to take you on this kind of dismal journey to success.
I have taken that dismal journey for you and show you exactly how to succeed - to become a successful investor. Yes, experience is required and you will make mistakes, because we all do, but the novice who studies and relies on the information on this site will make more successful trades from the start. You will be growing into that Extraordinary Investor with experience.
Your experience curve is significantly enhanced by the way this site is set up and will influence your mind for success. I have left nothing out. I show you exactly what to do to succeed. Do not make it more complicated than it is, or you will lose.
WARNING "At the Market"
Before I forget . . .
When purchasing shares of any penny stock be sure to always place a limit on the highest price you are willing to buy the shares of a stock for.
Do not ever purchase shares of any penny stock "at-the-market" price. On any given day, a tiny penny stock may only have one investor or market maker attempting to sell his shares. That investor-seller may set his ask price at let's say $2,000 or more per share - the sky is the limit. If you put in an order to buy shares of that company at the market price, then your order will be filled at $2,000 or better per share that this one investor set. I saw one penny stock with an ask price of $25,000 per share! but the last bid was like 3 cents. I will explain this again on the topic called, "Placing Stock Orders."
For those of you who are willing to accept this, I have just outlined the secret or key to extraordinary investing in penny stocks that only 2% of investors have mastered. Even so, this is just an outline.
If this was all you knew, then you would be naive to begin investing now although you will be far more successful than most penny stock traders or you could lose everything you have! Your knowledge is still too limited, and mistakes leading to financial disaster are so easy to make.
As you read on, and hopefully study, you will eventually possess all that is needed to avoid the pitfalls and become an extraordinary investor who can easily double his/her investment, or much more, every year.
And really, you will realistically do much better - doubling your principle investment every 3 to 6 months if you have complete days dedicated to research.
At times though, you may go through a stretch of time when you are unable to find a solid potential explosive trending stock. Do not let that make you impatient!!!
Continue to do your homework.
What you put into your research is generally what you get out of it in rewards with the proper mindset, philosophy and experience. Remember that specialization creates millionaires.
This concludes this subtopic on the Successful Investor.
Next Subtopic: Using fundamental and technical indicators together for successful penny stock trading.
Please click the following: Fundamental vs Technical Analysis