Penny Stock Trading: How To Reduce Risk and Make Good Money

Penny stock trading is generally considered more risky than trading other stocks. However, there is a simple way that you can very significantly reduce risk and make nice profit with penny stocks. In fact, you can use this method to make good money on a very consistent basis month after month, year after year.

I personally use this method for finding profitable penny stocks so I know first hand how well it works. It is so simple that even a person who is brand new to stock trading can use it to easily make a quick and very high return on their investment.

Before I explain this method, there is something you need to understand first. Picking penny stocks and knowing exactly when to buy them and exactly when to sell them requires a very different style of research than what traditional stock analysts use. For many penny stocks, there simply isn’t enough public information available to analyze the “fundamentals” and even where there is, this is not usually the best way to pick a penny stock.

People who are exceptionally good at picking penny stocks use research methods that are more akin to those used by investigative reporters and police detectives. They tend to be people who just have a natural knack for sniffing out information through back end channels and they are equally good at piecing together clues. They can often “see” things that other people just don’t see.

In light of this, unless you are one of those rare exceptional people, you should probably not try to pick out penny stocks for yourself. Most people who try to do this fail miserably. Even if you succeed in picking out one winner, you probably won’t be consistent enough to be able to make good money over time. This is true even if you are an experienced stock market investor. This is especially true if you don’t want to spend at least a 40 hour work week every week researching.

However, you really don’t have to be an expert at picking out penny stocks in order to find extremely profitable ones to trade. All you have to do is find a person(s) who is really goodat picking them and offers a subscription service. It’s very simple. You pay a small fee and in return you are sent high quality well researched picks that you can then trade. Most services offer picks on a weekly basis but some do so on a different schedule.

The key to this method is making sure that the picks you are being sent are profitable on a consistent basis. So, when you begin receiving picks, you should test the picks for a while before you invest any real money. Only once you have determined that they are profitable on a consistent basis should you invest real money. In this way, you significantly lower risk and you can evaluate just how profitable a particular source of picks will be.

Here’s one of the very best penny stock pick services out there http://pennystocksystem.co. His picks are always dead on and if you follow them you’ll definitely make money.