Trading penny stocks for beginnersFinancially, this past decade had been hard, very hard. The crisis of 2008 left no one without a scar and no stone unturned, but while most wallowed in the devastating results of the aftermath, the brave few decided to take the matter in their own hands and for once not be victims anymore. The way out of this financial abyss was in making their own job and their own future. This gigantic step was most effectively achieved by engaging oneself in the international stock exchange, the modern arena in which men have fallen in only matter of seconds of lack of concentration and gods were made in the moments of divine inspiration.

However, the stock exchange is a complicated and unforgiving place, where a layman is far more likely to be devoured by the beasts that lurk its shadows than find his or hers way to success. Furthermore, and this is a serious issue, it also requires a significant initial investment in order to bring profit, a teeny-tiny detail that at the very beginning disqualifies the majority of those daring from this financial race. However, there is a way to beat the system. This solution is as simple as it sounds, and it does consist of only three words, trading penny stocks. But first, you will need to learn how

Knowing your investment

The key of conducting any successful trade, not just on the penny stock market, lies in knowing where, how and when to invest. Since you aim on buying cheap and selling high, you first need to know how to recognize when the price of something, in this case the penny stock in question, is at its lowest and when it is at its highest. Because of this, it is perhaps the best advice to always stick to what you know best, if possible. Select an area of business that suits you the best, try to learn as much as possible about it and stick by it. While some compare investing with gamble, nothing is further from the truth since here, with knowledge, interest and experience your chances improve many times over.

What are exactly penny stocks?

Although the name itself may seem quite self-explanatory, penny stocks are in fact not worth penny a piece. However this does not mean that their definition is something complicated and abstract. Every stock, worth less than $5 is recognized by the stock market as a penny stock. As simple as that. So, by now you probably wonder, what is so special about the penny stock. The answer to this is also simple. Trading in penny stocks is the only way in which you can amass a fortune in no time, without any significant initial capital in your hand.

By now you probably wonder how this can be true. Well, because of their high volatility, the value of penny stocks may jump extremely high in just a short times notice, but can therefore drop low as fast as well; which means that both your winnings and your losses will be much greater, but as the popular proverb goes, he who dares, wins.


How to make a fortune on penny stocks

Fortune follows the bold, and regardless if we take this word fortune in its original meaning, as a synonym for luck or as the word representing great riches this sentence is still solid. There is no better support to this statement than by the example of Timothy Sykes, one of the most famous stock brokers of today, famous for turning his initial $12 415 into over $1.65 million, by the time he was 21. He did all of that, by trading in penny stocks. Not only that, but in the last several years, some of Sykes’ students managed to achieve similar feats and win on penny stocks, most notable of which is Tim Grittani, who after only 3 years of training, managed to earn his first million, by the time he turned 24.

With this in mind, there is no doubt just how possible it is to both make your name and your fortune on the penny stock market. All you need to achieve this is some will and determination, but most importantly of all, the right data, tips, advices and proper education on the matter. Once you have all of that covered, the world is your oyster.


Nate M. Vickery is economics graduate and an entrepreneur from Sydney, Australia. Lately he is mostly engaged in penny stocks investing. Aside from work, he enjoys surfing the waves and riding through Aussie outback.