Buying Penny Stocks The Easy Way

Buying penny stocks, while it can be a lucrative form of investing, carries with it a considerable amount of risk. The risks of penny stock investing can be dramatically reduced by doing your homework on the stocks you are considering buying, but that homework is tedious and time-consuming.

A penny stock picking robot has been developed that provides in-depth statistical analysis of stocks to predict investment returns and in the process greatly reduces the risks and enhances the potential profitability of buying penny stocks while drastically reducing the work involved in choosing stocks. This technology of course comes at a rather high price, but there is a way for even the smallest of penny stock investors to profit from it.

Penny stocks have considerable advantages to small investors as compared to other stock investments. The low stock price allows those with small amounts of money to invest to buy shares of multiple stocks and diversify their portfolios much more than they could with higher value stocks. Because even small dollar and cent changes in price can translate to large percentage changes in the price of penny stocks, good profits can be had with relatively low amounts of money invested.

To show the power of penny stock price changes, let's do a comparison. If you wanted to invest $1000 and found a stock you decided to buy at $100 per share, if it increases by $1 per share, you'll have made $10. On the other hand, if you invested $1000 in a penny stock that initially sold at $1 per share and it increases by $1 per share, you'll make $1000!

Unfortunately, just as penny stock investing can provide very high profits very quickly, buying penny stocks can result in big losses quickly too. Besides the normal risks that occur just from normal market forces, penny stock investing is especially risky due to the relatively high rate of fraudulent practices by sellers of the stock. Corporations that issue penny stock are not required to submit financial statements to the SEC, so it can be hard to find good information that you can rely on when trying to evaluate the stock.

In some instances, hard-sell marketing tactics, such as email spam campaigns, paid promoters making cold calls, exaggerated press releases, and "boiler room" operations may be used to lure unwary investors into buying a stock to drive up the price and then the insiders suddenly sell off their stock at the inflated value, leaving the investors holding the bag as the price drops like a rock. As with any investment, the higher the potential return, the higher the risk, but in penny stocks, the relatively high potential for fraud drives the risk even higher than what is seen in other investments that are simply at the whim of market forces.

To overcome the risks, buying penny stocks has traditionally required a large investment of time to research stocks to avoid the scams and predict a relatively good rate of return. A careful penny stock investor could spend quite a bit of time evaluating a single stock. This effort would hopefully pay off in the long-run, but the time required in doing this often made penny stock investing out of the question for part time investors.

Then along came "Marl", which is a penny stock buying computer bot designed by a couple of guys that had the unusual combination of computer programming expertise and in-depth understanding of stock investing. Marl has several advantages over human investors, but the biggest advantage Marl has is that there are no emotions involved in his stock picks. Marl makes his picks based on cold, hard, statistical calculations. Plus, Marl can do a detailed analysis of hundreds of stocks in less time than it would take even an expert stock analyst to do a cursory evaluation of just one stock. This doesn't completely eliminate the risks of buying penny stocks, but it does cut down on the risk considerably.

Marl has been so effective that he has allowed for huge gains by advanced investors. Because of this, Marl is considered a bargain at the $28,000 licensing fee, but bargain or not, this is well beyond the means of small investors. There is an option to use Marl that is available to investors with even the smallest of budgets though. The guys that developed Marl put out an e-newsletter that gives Marl's top penny stock pick for each week. For new investors, this might be even better than buying the full Marl program, as it narrows down the investment options to just one stock every week, instead of figuring out what to buy out of hundreds of options. With this, even the most novice of penny stock traders can do well with penny stocks.

Sadly, Marl's inventors are indicating that they will soon cease to offer the newsletter to new subscribers. Hopefully they will reconsider and continue to offer this valuable service that puts small investors on a more even playing field with large investors. For the time being anyway, Marl provides small investors with a great opportunity to profit from buying penny stocks.

Article Source: Main Articles

George Best is a small investor from San Antonio, Texas. For more about Marl and penny stock investing, visit buying penny stocks.

This article may be reproduced wholly or in part without written permission provided the byline, resource area, and any hyperlinks remain in order to give proper credit to the author.

Internet search engines and directory listings are imperative to your sites existence and success. Submit Your Website to the Searchen Networks directory and search engine to achieve authoritive inbound links.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5