Winning Big With Penny Stocks
A few weeks ago Money Philosophy thought it would be a good time to get back into the stocks game after having been out of it for a few years. He was drawn to stocks such as GM and C (Citigroup) which had taken a huge hit since the markets fell through the floor in September of 2008. These stocks looked like they were headed back up and he was thrilled about the possibility that they could eventually reach their previous peaks.
The C and GM picks were extremely successful and that got him into looking for other stocks like them. He found a couple of microcap stocks, LJPC and CTIC, that looked like they may break through with big gains.
That ended up being the case as both CTIC and LJPC ended up being huge gainers. They were even bigger winners than GM & C.
He decided that he may really be onto something with the way he was selecting these stocks so he decided to try to create a stock screen screen which would find more penny stocks like them right before they were about to go up.
The reason I’m writing this blog post right now is because his first stock pick with this new screen reached a high 20% above it’s open today and that certainly impressed the heck out of me.
Of course I don’t expect every stock pick he or anyone else makes to have big gains. That’s impossible. It’s also important to know that a gain isn’t “real” until you sell the stock. Making the decision of when to get out is just as important as deciding when to get in. The cool thing is that he also makes a post on his blog (and on Twitter) when he gets out.
He does not share exactly how he screens for these winning stocks as I guess he’s too selfish to share all of his trading secrets but he shares much more than most do.
Of course he does not suggest that people should follow his penny stock picks. There’s actually nothing to gain from that. You should always do some of your own investigating before deciding whether or not to buy a stock.
While I understand that it’s tempting sign up for The Day Trading Robot or The Forex Funnel, I definitely think I’ll have superior results just by following what Money Philosophy’s doing. And of course the great thing is that it’s free.
Filed under: Financial Advice