The ultimate trading system for penny stock alerts
Does trading penny stocks offer a way to wealth, or is it all scam? The astonishing answer is yes -- to both questions!
There is a long debate about the pros and cons of penny stock picking, but here is the short conclusion, a strangely simple trading system:
No fundamental judgement and no chart analysis??
Exactly! We are going to leave the fundamental analysis to someone else who can put more energy into this sort of exploration and then simply filter his trading alerts with the trading rules above. Information about a company is rare and problematic in the penny stock markets anyway. We are going to rely on statistics and a high price potential.
Prices are moving up and down...
...and that is our statistical trump. All we need is a source for penny stock alerts that is somewhat honest.
More than an honest attempt to find good candidates for moon shots is anyway impossible.
Look at larger stocks. There is much more information available about them. The media is talking about them. Analysts are tracking them. Large funds are buying them. And yet, they all make hardly their money back with their investments. On average the typical mutual fund underperforms the S&P.
It is strange and somehow we all know this uncomfortable truth of the markets, but we have difficulties to really believe it and to act accordingly.
For smaller stocks the predictability doesn't get better. There are many overlooked gems, misunderstood or forgotten companies that are outright cheap in the small cap markets. True, but that doesn't help much, because it is hard to get reliable information about these undervalued frog kings.
The answer is our statistical trading system:
So, it indeed makes sense to play the statistics.
With the choice of penny stocks we are also playing the math. Stocks with a huge statistical price potential offer huge possible gains, something like hundreds or even thousand percent. The worst case is only a loss of hundred percent.
For less extreme outcomes there is still this favorable asymmetry. If you use the simple penny stock trading system, larger gains overcompensate smaller losses. The statistical magic of a high price potential does the trick...
Final words - just stick to the trading system above and plug in this or any other
The Zen Trader
The Scam Artists
Pennies vs Gorillas