The penny stock market is one of the most misunderstood markets in the world. So many people enter this market with little to no knowledge of the skill set, trading tools and other components that are needed to be successful. Everyone seems to know of somebody that made thousands of dollars in penny stocks, and they want to do the same. The fact of the matter is penny stocks can make incredible percentage moves which put most other non-leveraged asset classes to shame and it doesn’t take a ton of money to get started. I can tell you from experience that when you make your first large profitable trade there’s no better feeling in the world, but I must warn you that the road to profiting consistently in the penny stock market isn’t some get rich quick scheme. This false belief that many people have about penny stocks is a major reason that so many people fail.
The key to consistent profits in penny stocks or in the stock market as a whole, is to extract small to medium size profits again and again. Now when I say small I don’t mean $30 or anything ridiculous like this because such small profits will do nothing for you. Instead I am referring to several thousand dollars at a time because over time these profits will add up to significant gains, and it’s absolutely possible to do this if you separate yourself from all the consistent losers.
Although trading penny stocks becomes pretty easy once you learn how to do it, it’s not something you are going to learn instantly. If you think you are going to start trading today and end up a millionaire by next week, unfortunately you are living in a dream world. I urge you to walk away now and NEVER get involved in penny stocks or any form of trading for that matter! Many so-called “guru’s” will try to convince you that you can do this but I can assure you they are lying so that they can steal your money. Everyone wants to jump in to the penny stock market head first but the truth is the penny stock market will eat you alive if you get involved without arming yourself with the correct knowledge that is needed to succeed. Fortunately from my experience, it’s most certainly worth getting involved, but you need to be smart about the approach that you take.