The first thing you probably thought when you saw the title of this post was…IMPOSSIBLE! Well, I have to tell you something “it’s possible,” you just have to know where to get it and what to do. See, even though the stock market has taken a serious hit over the year (down about 30%), that doesn’t mean you can’t make money in the stock market (in fact, this is the time to make money, that is why I added stocks to my plan).
I’ve been involved in the stock market since the age of 13 (so, I’ve got about 10 years in the stock business, WOW! That’s real education) and one thing that I’ve learned is that you cannot make much money in everyday stocks (NASDAQ, DOW, and S&P Listed). You are probably confused right now, but don’t worry I will explain. What I mean is that you can not make much money in the stock market because it’s very efficient, it’s crowded, and current news is already priced in before you buy.
But that is not the case when you are dealing with penny stocks or stocks traded over the counter (OTCBB). Penny stocks are usually define as companies whose share price is below $1. These companies are usually start up companies and usually very risky (according to your college finance teacher), but very profitable (according to Chiko). If you know what you are doing, you can turn these high risk companies into high returns and make a lot of money for yourself. I will be teaching you how to do so in many more posts to come, but for now let me try to explain to you why?
In the stock market, the most important thing is the % (increase or decrease) not the price of the company. So that means, if you are trying to make 100% increase of your invested assets you can either (invest in a $1 company that goes up to $2) or (.01 company(penny stock) that goes up to .02). Both of these moves are 100% increase, but which one do you think will happen first (or faster)? Of course the .01 company. This is the reason I usually invest in penny companies because I make more money quicker.
So what did I invest in this week? Well, at the beginning of this week (Sunday to Monday morning) I researched for a company to invest my $500 (in my trading account). I found two companies that looked very appealing (stock symbol DORB and CABN), then I invested in them on Monday morning.
I bought 1400 shares of CABN @ .19 ($266) on Monday and ended @ .19 today (0% increase = $266)
I bought 2700 shares of DORB @ .09 ($243), on Monday and ended @ .125 today (38.88% increase = $337 )
That means that my $500 (in my trading account) is now valued at $603 ( about $100 more than last week). How did you do this week in the stock market? Imagine if I had more to invest like $10,000 (that would have been $1,000 for the week made. WOW!).
Want to learn how to pick winning penny stocks subscribe now ( RSS or Email).
You Should Also Check Out This Post:
- M.N.S.P.: I Am Still Buying Healthcare Edition
- Am I Crazy Or A Millionaire Waiting To Happen?
- M.N.S.P.: How I Made 50% Gain In 4 Days Edition
- I'm Buying Healthcare: Medefile International Inc.
- The Purpose Behind The Platinum Ride
More Active Posts:
- SpongeTech Will Make Me A Millionaire! (28)
- I Bought 13.5 Million Shares of Nexia Holding Inc. (NXHD) Today! (25)
- Stock Market: Make 30% In One Week? (18)
- My $14,000+ Shopping Spree! (16)
- Education: Slave Master To The American Dream (14)
- Penny Stocks: What Are They? (12)
- I Made $1,000 Today In The Stock Market!!! (11)
- How I Lost $5,000+ In The Stock Market (11)
- SpongeTech Will Make Me A Millionaire: Part 2 (10)
- Graduating College Debt-Free: How I Did It (9)
Penny stocks can also ruin you. I was up 60% in one day, and only a few days later,
I was down negative, pumping more of my work bonus in. All told, I lost over $5K.
No matter what stock you pick, do your research. And if others aren’t buying, there’s
probably a reason. Penny stocks are sometimes run by shell companies who are out
to fleece victims.
Comment by raj — January 9, 2009 @ 7:43 PM
I agree, but that is why you have to have a game plan when investing in a penny stock. You have to know your reason for buying before you buy. That’s how I do it.
Comment by chiko777 — January 9, 2009 @ 9:09 PM
When trading penny stocks real time Level 2 quotes are a must – as well as being able to represent the bid and offer. It is not a stocks fault people lose money – its how they trade – I make a lot of money in the small cap and penny stock markets – I know how too is the key -
Comment by iwontoday — January 10, 2009 @ 8:28 AM
Exactly iwontoday, I couldn’t have said it any better. People lose money because of the their own misunderstandings. Trust me, even though the market seems to be bad (to the average) investor, the not-so-average-investors are doing well for themselves.
Comment by chiko777 — January 10, 2009 @ 8:34 AM
Knowledge is Confidence – I’m buying ALIN and ERFW – ALIN is going to run to .10 next week and ERFW may breach 1.00 and then rally-
Comment by iwontoday — January 10, 2009 @ 8:37 AM
Good article:
The “January Effect” on the other hand is the general tendency for stocks to outperform in January and specifically for small-cap stocks to do much better than large-cap stocks in the month of January. Despite its horrible performance in 2008, January is the anchor to the best consecutive three-month span, November through January.
Comment by iwontoday — January 10, 2009 @ 8:38 AM
Link: http://tinyurl.com/8ob5q6 January Effect
Comment by iwontoday — January 10, 2009 @ 8:39 AM
@ iwontoday: As long as you know exactly why you are getting into ERFW and ALIN, then you are good. So maybe you can share with us (1 or 2 sentences) why you are investing in these two companies.
Comment by chiko777 — January 10, 2009 @ 8:56 AM
First ALIN has a very low float and has broken resistance at .02 – Also rumor is Monday is the start of a newsletter campaign which usually see’s a great return – ALIN is cheap and will see .10 very easily near term – As for ERFW – the momentum is very strong – up 40% in a week – I see ERFW going past 1.00 near term – I have profited immensely in the small cap arena – It’s pretty simple – Just watch closely and and sell at the Offer opposed to the bid – When placing to sell at the offer you must have at least 5000 shares to sell otherwise it won’t reflect – Buy 50k ALIN at .03 is 1500 bucks – Sell at .10 for a $4500 profit – Not bad for a few weeks – Do it all the time -
Watch or Profit!!
Comment by iwontoday — January 10, 2009 @ 11:36 AM
Correction: $3500 Profit – I can help you make that every week -
Comment by iwontoday — January 10, 2009 @ 11:50 AM
Good job iwontoday let’s see what happens this week coming up. I am ok with my strategy. I think it’s important that people use the strategy that works for them. I’ve got mine and it works for me, sometimes I win big sometimes I win small, but the most important thing is that I win.
Comment by chiko777 — January 10, 2009 @ 3:32 PM
Cool, I hope I learn much more as I read on with your postings. I was never interested in stocks, but it seems like its very interesting and profitable. Good job Barnabas:-)
Comment by Von — January 11, 2009 @ 12:33 AM
Thanks Von. Yes, the stock market is a very easy and effective way to create wealth.
Comment by chiko777 — January 11, 2009 @ 4:14 AM
[...] * I will watch my two investments (DORB and CABN) to see if I should sell them or hold them for a little longer (I’ve already made about 30% already) [...]
Pingback by My Barnabas : T.G.I.S.: Graduation Edition — January 11, 2009 @ 4:25 AM
[...] week DORB increased more than 30% (again) and SPNG has a big week coming up this week (we might even be on [...]
Pingback by MyBarnabas : T.G.I.S.: TurboTax Edition — February 8, 2009 @ 9:34 PM
[...] Save and Invest [...]
Pingback by MyBarnabas : T.G.I.S.: The Ten Roads To Riches Edition — February 15, 2009 @ 8:03 PM
[...] Sigma-Tau Pharmaceuticals, Inc. valueing it at $0.18 (at least). That means we should be seeing another 30% increase in the near future (hopefully this [...]
Pingback by MyBarnabas : MyBarnabas.com Stock Stimulus Bill — February 16, 2009 @ 8:26 PM
[...] you probably guessed it…I bought more shares of SPNG. I sold my shares in CABN at $.25 (bought 1400 shares at $0.19) and my shares in DORB at $0.111 (bought 2700 shares at $0.09) for a about $649 total. I made a [...]
Pingback by MyBarnabas : Ooops! I Did It Again — March 18, 2009 @ 10:43 PM