CHAPTER
1
The Big Business of Penny Stocks
PENNY STOCKS ARE BIG BUSINESS
They may sound small, but penny stocks are big busi-
ness. The phrase “penny stocks” is one of the most popular fi nan-
cial searches on the Internet. In fact, it gets more searches than
terms like “stock picks,” “stock quotes,” “New York Stock Exchange,”
or “stock broker.”
This translates into tens of millions of investors in America, and
millions more worldwide, actively searching for information and guid-
ance on penny stocks. Unfortunately, hidden motivations abound,
and misinformation outweighs the amount of proper analysis. As the
Penny Stock Professional, I am actively working to change this state of
affairs.
My team and I help people avoid some of the common dangers,
and fi nd the best penny stock companies with the greatest upside.
You’ll fi nd that it is quite simple—it’s extremely lucrative to get
involved with the best 5 percent of penny stocks. These companies
will have:
• Strong management teams
• Good upside potential
• Proven revenues
• Patented technologies
• Solid financial trends
Finding and investing in the best penny stocks is one of the
most lucrative ways to make money on the stock market, or to make
money at anything for that matter
Broad Appeal of Penny Stocks
I love the broad appeal of penny stocks. Unlike most investment
vehicles, which get the attention only of specifi c types of people,
penny stocks seem to generate interest among all types of investors,
of all skill levels and all fi nancial situations.
If you are a beginner, you’ll learn about trading quite quickly,
because penny stocks move faster and are more volatile than more
conventional investments. Your learning curve will be much shorter
than if you just put money into IBM and let it sit there for a year
or two.
If you have limited funds to invest, penny stocks give you the
potential of actually making something out of your money. A $1,000
investment can multiply many times over, compared to putting that
cash into a slow-moving blue chip or a super-safe bond, even if you
let it sit there for years and years.
If you are an experienced trader, penny stocks are appropriate
for a portion of your portfolio because they add excitement and
big-gain potential to your investments.
If you know what to look for, and thus get involved with really
high-quality companies, it can translate into massive gains. So many
of these high-quality penny stocks are trading for pennies a share
simply because they are:
• Overlooked
• Undiscovered
• Unfairly valued
• Sold off in sympathy with a sector or the overall market
Invest in Penny Stocks: A Guide to Profitable Trading by Peter Leeds