Is it possible for people to actually make substantial profits from Penny Stocks, even to become millionaires? Certainly there are some people who make huge amounts of money from stocks, ordinary people who trade on their own time perhaps as a hobby rather than as a professional trader. However, it is highly likely that while they started with penny stocks, they eventually moved onto other potentially more profitable stocks using larger sums of money once they felt they were more experienced and had more money to spend. The question, of course, is how to quickly start profiting on penny stocks with the least risk.
Before we answer that question, let’s quickly define what we mean by pennies. There are different precise definitions, but generally the phrase refers to highly speculative, low-priced stocks that typically sell for less than $ 1 per share. They are highly volatile and can go up and down hundreds of percentage points in minutes, sometimes up to 400%. Of course this can be dangerous, but it can also be extremely profitable if you know what you are doing.
Now that we know what penny stocks are, how can we quickly determine what to trade, and when, to maximize our profits? Remember, it is usually only after we have performed a series of trades using small, low-risk sums that we can even think about doing the kind of trades we need to make a lot of money quickly. In most cases, traders simply have to invest hours, weeks, months and years to gain experience in the market. Only after trading many times and analyzing trends and results over an extended period can a trader say that he truly understands stock trading, and even then he will continue to lose on many trades.
However, of course, many shortcuts are offered. There are many “systems” available, ways to help you identify profitable trends and opportunities as they occur, but most of them have huge problems. The main problem is simply that any system is still based on the analysis of historical trends, and this takes time and effort. However, there may be a new solution.
Two computer programmers have created software that performs stock scans looking for companies that are forming bullish trading patterns, meaning their stocks are about to rise. This software constantly records historical information and learns more and more over time, and each week generates recommendations for stocks that it believes should be bought and sold. These recommendations are only made when the software is confident in the result, based on the large amount of data it has analyzed.
Of course, as with all stock trading, and particularly in the volatile penny trading market, not all decisions will be correct, even software cannot predict all possibilities. But, on average, the software is reported to generate profit of 105.28% per week, even taking into account the business recommendations that do not work. Could this be the key to making significant profit from penny trades without spending years as a trader? Apparently, if someone had put $ 5000 into each of the recommended trades for 4 months last year, they would have made $ 387,684 in profit.