Sunday, May 30, 2010

Penny Stock Billionaire

http://i.ehow.com/images/a04/ji/c3/become-millionaire-buying-penny-stocks-200X200.jpgCan you invest $200 in penny stocks or what you call microcaps and make that investment grow into something like $100K or even $1M in the next few years? Many people don't take microcaps as serious investments. There is some element of truth in that. But do you know a guy who turned $1K into $1M in just 1 month with penny stocks in just 38 trades! Or do you know the person famously known as the Penny Stock Billionaire?

So why microcaps? There are thousands of stocks in markets like technology, agriculture, health, commodities, energy and more. But what makes penny stocks different from the normal stocks is that they are dirt cheap. Most of these microcaps get traded for as little as $0.1 per share.

Imagine, discovering a stock costing $0.1 per share skyrocketing into $10 per share in a matter of let's say a few weeks. That is a gain of 10,000%. So with microcaps, you have the potential of an explosive gain and with the price as low as a few cents to a few dollars, small investors can also play with them.

Now the problem with most stocks is that they take too long a time to show a capital gain. For a stock to go from $50 per share to $100 per share can take a few years. But a stock priced $1 per share can easily double overnight. Hey, it's only one dollar.

So with penny stocks, you can get rich at lightening speed and also get poor with the same speed if you don't invest in them prudently. The best way to invest in penny stocks is to just start with $200.Grow that $200 into $1000! That $1000 into $10,000. That $10,000 into $100,000. You got the picture.

Over the last few decades, penny stocks have regularly outperformed regular stocks by huge margins. In 1939, John Templeton bought 100 shares of every company trading under $1 per share. Over the next few years, his investment multiplied by many times even though many of the companies that he had invested in went bankrupt.

This shows that profitability of penny stocks. John Templeton eventually retired as a billionaire and passed the rest of his days in sunny carefree Bahamas. John Templeton had graduated from Yale and he was a pioneer of investing in globally diversified mutual funds. But his success had started from his plan to buy 100 shares of every company trading before $1 per share.

Article Source: http://EzineArticles.com/?expert=Ahmad_A_Hassam

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