I learned the hard way how to make money in penny stocks, and I hope to make it easier for you by revealing how I have started to make six figures.
I lost a ton of money when I started trading penny stocks, but I finally learned the the few simple repeatable steps that make it possible to win 80% of the time using the following steps.
The first thing I learned was that for the most part, it's best not to invest in penny stocks, but to trade them. Leave the investing to the blue chip stocks with the paltry 4-5% yearly returns(if you're lucky). Penny Stocks are for trading, and if you have a good alert provider, and can trade the momentum, then you can make some serious returns in just a few short days.
The second simple step is to totally take guesswork out of your trading. That means take the emotions of buying and selling completely out of the equation. This sounds like it's easy, but I'm sure many of you have already realized that it's not so simple. The quickest way for a penny trader to burn himself out is buy holding on to a losing stock thinking it has to bounce back up. The reality is that it will not, and even if it does it will often take longer then what we traders like. You don't want to tie up your trading capital for weeks when many other potential winners are around the corner. When you go into a trade with pre determined entry and exit points and use stops to control this you ensure no emotional trading.
There are many types of stops you can use, but really you only need an automatic stop for the downside, and the upside(the amount or percentage you are happy with profit wise, or losing; on the downside). These are really important for the working trader as you are not in front of your computer all day to place the trades manually. Even if you are, use them, as I see even the most experienced traders let emotions ruin otherwise good trades.
Finally, and most importantly, you need a reliable pro who is tracking the markets, and the pro that i found was James Connely who offers his Penny Stock Prophet Picks. He was an MIT student who figured out a unique investing strategy that allowed him to turn a few thousand into a million in just over a year. The best part is that unlike the others that I tried, he actually finds these momentum patterns before the stock runs up. I know on more than one occasion I used a few so called gurus who were about a day or two late with sending their picks.
He only charges a one time fee, and you can paper trade his picks first to see how they work and to get used to them. He also backs his service with a 100% guarantee, which takes all the risk out of it.
In closing if you follow these three simple steps you will be ahead of 95% of the rest of the traders in the penny market. Discipline is the key to survival, and James Connelys Prophet Picks are the difference makers.
Will RAJA be a top pick again? I can not answer this, but I can say you will eventually get hundreds of picks that are ready to explode.