Stocks | Investing In Penny Stocks For The Rookie

There is a new computer "bot" that has been developed that analyzes penny stock. through in-depth mathematical evaluation and by doing so dramatically decreases the risks and increases the profits from buying penny stocks, while greatly simplifying the effort of choosing what stock. to buy and when. As you've probably guessed, a method this potent comes at a fairly high price tag, but there is an affordable way for even the smallest stock investor to gain from it.

Penny stock buying and selling has big advantages when it involves large, rapid returns on investment, due to the fact that penny stock. are priced low enough for even very small investors to buy, as well as benefit from the option to have a diversified portfolio. Given that penny stocks have such low values, just a few cents change of the value of the stock can equate to a huge difference percentage-wise, and potentially an incredible profit to the investor, depending on the value of the overall investment, especially in comparison to the profits possible with higher value stocks.

To emphasize the power of penny stock price adjustments, let's do a comparison. If you wanted to invest $1000 and identified a stock you committed to buy at $100 per share, if it increases by $1 per share, you'll have made $10. But, if you took that same $1000 and invested it in a penny stock trading at $1 per share and then it increased by $1 per share, you'll make $1000 with your shares!

However, for the exact same reason that penny stocks make so much money so rapidly, they could also lose a lot of money quickly, which is one of the major reasons you need to be particularly careful when buying. Yet another reason that penny stock investing is dicey is due to shady or outright fraudulent methods of some people involved in promoting and selling penny stocks. It's at times quite difficult to gather dependable information to truly compare penny stocks, as companies that issue these stocks aren't legally required to file financial reports with the Securities and Exchange Commission.

A number of deceitful strategies may be employed to lure unsuspecting investors into buying penny stocks as a ploy to drive up the stock price, which then insiders could easily sell off their shares at a higher price. The sale then drops the stock value sharply and the holders suffer a big loss. It's normal for investments having the greatest prospective rewards to also hold the greatest capacity for risks, but in searching for penny stocks, the relatively large degree of misconduct drives the risk much higher than what would occur under ordinary market conditions.

In order to cut the associated challenges of buying penny stocks, a good amount of time and effort is often required to assess possible stocks, to prevent potential for fraudulent misconduct, and realize an acceptable return on investment. A cautious penny stock investor could devote a good deal of time evaluating a single stock. This effort would hopefully pay off in the long-run, however the time spent in doing so at times tends to make penny stock investing unrealistic for part-time investors.

Then enters "Marl", a penny-stock-picking computer "bot" developed by a couple of guys that combined computer programming knowledge with an in-depth comprehension of stock investing. Marl has several advantages over human investors, but the biggest advantage Marl has is that there are no emotions involved in its investment picks. Marl makes its picks based on cold, hard, statistical calculations. Plus, Marl can do a comprehensive analysis on hundreds of stocks in less time than it would take even an expert stock analyst to accomplish a cursory evaluation of just one stock. This doesn't entirely eliminate the risks of buying penny stocks, nonetheless it does reduce it considerably.

Marl has been so effective that it has allowed for substantial gains by sophisticated investors. Because of this, Marl is deemed a bargain at the $28,000 price tag for a licensing fee; but bargain or not, it is well beyond the means of small investors. There is an option to use Marl, though that is available to traders with even the smallest of budgets. The makers of Marl publish an e-newsletter that provides Marl's leading penny stock pick for each week. For new traders, this might be even better than purchasing the entire Marl program, since it narrows down the investment options to just one stock every week, in lieu of figuring out what to pick out of hundreds of options. By using this technique, even total novices have the potential to generate very good returns on their penny stock purchases.

Although the creators of Marl have indicated that they might be limiting the number of subscribers to their newsletter, and might even discontinue selling new subscriptions at all in the very near future, small investors, at least for now, have an opportunity to dramatically enable them in acquiring penny stocks.

Since Marl's appearance, the penny stock market has been flooded with competing newsletters, all claiming to be the end-all in trading and investing in penny stocks. It is recommended that novice investors pick the one that answers their questions, matches their budget, and appeals to them personally. You'll find our picks in the resource box below. Good luck!