How to Get Rich with Penny Stocks

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How can you get rich with Penny Stocks? Any of you guys making money with them right now? Which websites, books, magazines, or any other sources are you researching and utilizing? What is the best Program or Service to Trade Stocks with?
  • Profile picture of the author butters
    Someone watched wolf of Wall Street recently!
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    • Profile picture of the author tagiscom
      Originally Posted by butters View Post

      Someone watched wolf of Wall Street recently!
      Yes, we don't need any visual cues, concerning closing a deal over the phone.

      Need a MA+ for that one!

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      • Profile picture of the author myob
        Penny stocks may sound alluring, but they are more often than not money losers or even scams. In my experience, the best time to buy stocks are during major downturns and recessions. Save your money now and be ready to invest in quality stocks when the next opportunity (ie recession) hits.
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        “If I have seen further than others, it is by standing upon the shoulders of giants.” – Isaac Newton
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        • Profile picture of the author DURABLEOILCOM
          Can anyone chime in about this? Penny stock trader: From $1,500 to $1 million in three years - Dec. 16, 2013 I am trying to find out if this is real or some scam? Apparently this guy knows his stuff about trading Penny Stocks "Timothy Sykes".
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          • Profile picture of the author Enfusia
            Hi, I have made several investments with these guys advice and one broke even, with the rest making money. One was just over 300% in a week.

            This is not investment advice, I'm not an affiliate.

            Money Morning - We Make Investing Profitable

            What you do is subscribe to their daily newsletter.

            They have commercials where they attempt to sell you stuff, so watch for that. But, I've done well with them. Like anything you have to pick and choose what they say and act on what makes sense.

            Patrick
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            • Profile picture of the author HN
              Banned
              Originally Posted by Enfusia View Post

              Hi, I have made several investments with these guys advice and one broke even, with the rest making money. One was just over 300% in a week.

              This is not investment advice, I'm not an affiliate.

              Money Morning - We Make Investing Profitable

              What you do is subscribe to their daily newsletter.

              They have commercials where they attempt to sell you stuff, so watch for that. But, I've done well with them. Like anything you have to pick and choose what they say and act on what makes sense.

              Patrick
              I'd second that. Be careful with these guys. The so called expert Kent Moors from MM predicted oil to rise to $250 when it was at all time highs above $140. Instead it fell to $40. In early 2012 he predicted it to rise to $200 due to Iran crisis. Never happened. Today it's below $60.

              Are you really getting good advice from those guys?

              P.S. I 've invested in IAMGOLD Corp. at $1.78 in March.
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          • Profile picture of the author DURABLEOILCOM
            Originally Posted by DURABLEOILCOM View Post

            Can anyone chime in about this? Penny stock trader: From $1,500 to $1 million in three years - Dec. 16, 2013 I am trying to find out if this is real or some scam? Apparently this guy knows his stuff about trading Penny Stocks "Timothy Sykes".

            Apparently Timothy Sykes has a training program that teaches his methodology, can anyone attest to the legitimacy of his program?
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            • Profile picture of the author myob
              Be ware that many such penny stock "trainers" typically own the stocks they "recommend". This scam is known as "pump and dump", whereby they pump up stocks though their newsletters to starry-eyed novice investors, then dump them for huge profits. This link may be helpful in becoming more of an astute investor: Timothy Sykes Busted Promoting Penny Stocks
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              “If I have seen further than others, it is by standing upon the shoulders of giants.” – Isaac Newton
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          • Profile picture of the author kv151
            He trades stocks with very thin volume and charges you 5k for his training program. It is very hard to make money with Tim Sykes, but his training program is very comprehensive
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  • Profile picture of the author Nate Simms
    Originally Posted by DURABLEOILCOM View Post

    How can you get rich with Penny Stocks?
    You don't.
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  • Profile picture of the author GlobalTrader
    You may wish to check out Stock Gumshoe at:

    Stock Gumshoe | Secret Teaser Stocks Revealed. Investment Newsletters Reviewed.

    They have a great amount of free info and a paid subscription (but not required to get value from their site!).

    Basically they evaluate the 'hypey' headlines that most investment promotion services publish and give you what their research uncovers. Additionally, they allow comments from readers/subscribers who may already be paid subscribers to the service they are reporting on and much of what someone pays for can often be found in these comments.

    They also have a 5 star rating system for the various newsletter services out there so you can see what actual paid subscribers rate them for several different categories, i.e., customer service, value of recommendations etc..
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    GlobalTrader

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  • Profile picture of the author bizgrower
    Just for fun, I Googled the stock Sykes got busted for: iTrackr Systems, Inc.: Private Company Information - Businessweek

    I'd pay attention to Bloomberg and Forbes, etc., and find a good forum devoted to stock trading.

    It can be done, but the odds are not favorable. Research the broker as well as the companies.
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    • Profile picture of the author DURABLEOILCOM
      Originally Posted by bizgrower View Post

      Just for fun, I Googled the stock Sykes got busted for: iTrackr Systems, Inc.: Private Company Information - Businessweek

      I'd pay attention to Bloomberg and Forbes, etc., and find a good forum devoted to stock trading.

      It can be done, but the odds are not favorable. Research the broker as well as the companies.
      Great advice guys, does anyone know of a great forum for Stock Trading? I am glad I did not pull the trigger on Timothy Sykes' trading program.
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      • Profile picture of the author myob
        Originally Posted by DURABLEOILCOM View Post

        Great advice guys, does anyone know of a great forum for Stock Trading? I am glad I did not pull the trigger on Timothy Sykes' trading program.
        Never trust forums for accurate information!

        A good start in understanding the shark-infested waters of investing would to attend a free webinar offered by Rich Dad FREE Live Webinars and recommended reading ("Rich Dad Poor Dad", "Stock Investing for Dummies").
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        “If I have seen further than others, it is by standing upon the shoulders of giants.” – Isaac Newton
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        • Profile picture of the author bizgrower
          Originally Posted by myob View Post

          Never trust forums for accurate information!

          A good start in understanding the shark-infested waters of investing would to attend a free webinar offered by Rich Dad FREE Live Webinars and recommended reading ("Rich Dad Poor Dad", "Stock Investing for Dummies").
          I don't know the stock arena with respect to forums.

          I do like BiggerPockets.com for real estate. Some
          experienced posters over there. I assume there
          has to be something similar for stocks.

          Like anything else, buyer beware and if it seems to be
          too good to be true, it probably is. In real estate, there are
          offers that sound good, sort of make sense, but are illegal -
          such as a certain way to get cash back at closing
          which was pushed a few years ago.

          With forums, Rich Dad, Poor Dad stuff, and Stock Investing for Dummies...
          It's primer material that should be coupled with legal or tax advice
          from a CPA and/or Attorney professional when it comes
          down to actually doing it in your State and Country.
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          "If you think you're the smartest person in the room, then you're probably in the wrong room."

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          • Profile picture of the author myob
            Originally Posted by bizgrower View Post

            With forums, Rich Dad, Poor Dad stuff, and Stock Investing for Dummies...
            It's primer material that should be coupled with legal or tax advice
            from a CPA and/or Attorney professional when it comes
            down to actually doing it in your State and Country.
            Excellent points, although these are explained in the material I referenced. Investment offers through the stock exchanges and brokers are legally required to be accompanied by a prospectus. I would never make an investment (particularly in penny stocks or IPO) without first closely examining such documents with competent unbiased advice.
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            “If I have seen further than others, it is by standing upon the shoulders of giants.” – Isaac Newton
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  • Profile picture of the author Janice Sperry
    Penny stocks are one of the worst gambles you can make. The "pump and dumps" have made it nearly impossible to know if there is a legitimate possibility for growth or if it is pure hype. Most, if not all, of the so-called proof that "I went from $1,000 to $1,000,000 in two years" are just reverse engineered picks. It is very easy to research past listings; pick winners by buying and selling at the right time; and then claim you made all those in real time. The slickest ones will show a few fake losers also to make it more believable.
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  • Profile picture of the author butters
    Just wait for major economical news like the EU bank adding stimulus to the economy or general elections, you need a lot to invest to make good returns but you just know the market will react a certain way to certain events.
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  • Profile picture of the author bizgrower
    I will throw out some more names/resources.

    Since I don't have any stock investments, I can't give them my highest endorsements,
    but they seem legit and at least educational. Read up, google names for scams, talk to
    your professional advisors, and then you can separate the wheat from the chaff when
    dealing with a stock broker, promoter, or using something like etrade.

    Maybe get a free consult with a Certified Financial Planner and find out more about what
    kind of investor you would be - high risk or not, etc.

    Anyway:
    Nick Hodge "Early Advantage" - primarily in the energy sector
    currently suggesting high gains through uranium stocks
    Energy Investing For Dummies: Nick Hodge, Jeff...Energy Investing For Dummies: Nick Hodge, Jeff...

    Energy and Capital

    MotleyFool at http://fool.com

    Daily Reckoning - Economic News, Markets Commentary, Gold, Oil and Investing Strategies.
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    "If you think you're the smartest person in the room, then you're probably in the wrong room."

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  • You absolutely can not make money trading penny stocks over the long term.

    These sites operate in a very similar approach to sports betting sites: the site sends out 10 different penny stock ideas- they group there list into 10% segments so if one of these crappy ideas go up they have a group to aggressively sell. They do this over and over and eventually there is a very small sub-group that has seen a good trade. Often times they buy in front and sell once its 'pumped' but this approach is illegal so the legal exposure is huge. On the other hand, the first example is not illegal just extremely misleading and obviously unethical.

    Jonathan
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  • Profile picture of the author HeySal
    Well, of course, the best way to get rich on penny stocks is to own the company.

    Basically it's partly good ole gambling luck and partly your understanding of business. A lot of new companies show quite a bit of capital gain - but if you look into the prospectus, it's from funding, not service/product sales. What part of their intake are they spending on output? Etc. You want something with a healthy product sale.

    What % was funded (doesn't disqualify a product because the fact it found funding says at least a little bit if it was funding from non-owners) Ask yourself, what % of a population will want, need, use the product - what's the cost of each product (divide by current sales to see how much is actually selling). Is it a one time or long term use product, disposable, one time sale only -- just do some math and then hope that everyone who is part of the market for a product really wants it. Do some projection accounting.

    If you aren't familiar with futures markets or growth industry projections - study up, that helps, too. Sometimes blind luck isn't bad for gambling either.
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    Sal
    When the Roads and Paths end, learn to guide yourself through the wilderness
    Beyond the Path

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  • Profile picture of the author David Beroff
    I've sometimes wondered if there was some contrarian trading approach to the pump-and-dump scams. i.e., The scammers send out millions of emails trying to get people to buy a given stock, so would there be any merit toward the idea of using options or shorting, etc., knowing full well what's going to happen after they dupe some people?
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    • Profile picture of the author kv151
      There is a good indicator of when pump and dumps schemes begin. The website below helps to track when these kind of schemes start. Check it out

      theOTC.today
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    • Profile picture of the author myob
      Originally Posted by David Beroff View Post

      I've sometimes wondered if there was some contrarian trading approach to the pump-and-dump scams. i.e., The scammers send out millions of emails trying to get people to buy a given stock, so would there be any merit toward the idea of using options or shorting, etc., knowing full well what's going to happen after they dupe some people?
      As a contrarian investor myself (scoop up on bad news, dump on the good news) this might work except there generally are no options for penny stocks and the typical spread (buy price vs selling price) makes it impractical.
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      “If I have seen further than others, it is by standing upon the shoulders of giants.” – Isaac Newton
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      • Profile picture of the author kv151
        Depending on the liquidity of the stock, you can find a good amount of shares to short on Interactive Brokers and Suretrader. Short at the peak of a penny stock promotion.
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  • Profile picture of the author Rod Cortez
    Originally Posted by DURABLEOILCOM View Post

    How can you get rich with Penny Stocks? Any of you guys making money with them right now? Which websites, books, magazines, or any other sources are you researching and utilizing? What is the best Program or Service to Trade Stocks with?
    As a former financial planner who specialized in stock and mutual fund investing, I am not a big fan of penny stocks. There's a reason why they have such low valuations.

    Now that doesn't mean people don't make money investing in penny stocks, but like anything else out there, you have to really know what you are doing. Penny stocks are not for the faint of heart, nor is it a place for the novice investor. I invest in them rarely and only when my due diligence points out that it's set to move.

    My not-so-secret weapon with my stock investments for the past decade plus has been Investors Business Daily. I love that publication. I used to be very active on the IBD forum, but found myself spending way too much time in there are not enough on my own investments. You can learn more about William J O'neils style of investing at Investors.com

    The IBD University is free and have found it very useful to learn their CANSLIM method of stock investing. I've taken different methodologies and have combined them to come up with my own. I may hold a stock for a few hours or a few days, depending on what I'm trying to accomplish. I do have some long term in individual stocks apart from my mutual fund investments.

    I've made my trades with Ameritrade, TradeStation, eTrade (back in the day), and Charles Schwabb and have been happy with all of them. You can often find deals where you can get a few hundred commission free trades.

    RoD
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    • Profile picture of the author kv151
      I wouldn't say the average Joe would "Invest" in penny stocks. If you plan to make money with penny stocks its going to be trading them and trading them quickly. The fees associated with Ameritrade, Tradestation and eTrade are the highest in the industry. Best option if you want a great broker with low fees is Interactive Brokers.
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      • Profile picture of the author Rod Cortez
        Originally Posted by kv151 View Post

        I wouldn't say the average Joe would "Invest" in penny stocks. If you plan to make money with penny stocks its going to be trading them and trading them quickly. The fees associated with Ameritrade, Tradestation and eTrade are the highest in the industry. Best option if you want a great broker with low fees is Interactive Brokers.
        Thanks for the tip, I'm going to take a look at them.

        RoD
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        "Your personal philosophy is the greatest determining factor in how your life works out."
        - Jim Rohn
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