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Bear Market, Bull Market or Dead-cat Bounce…It Matters Little to the Stalwart Penny Stock

Bear Market, Bull Market or Dead-cat Bounce…It Matters Little to the Stalwart Penny Stock

Over the last eight weeks June, 2006 I’ve been spending a lot of time reading articles describing the current market conditions…trying to figure if it really affects penny stock investors.

Are we in a bull market…are we wading into a bear market. Or is the recent rally just a dead-cat bounce?

The dead cat bounce refers to a short-term recovery in a declining trend. There’s a (relatively) old saying in investing: even a dead cat will bounce if it’s dropped from high enough.

No matter how you slice it…I’m not sure it even matters to penny stock investors like you and me.

For example…stocks surged in Japan this week as reports showed growth in manufacturing and exports. Markets rose across Asia as investors were encouraged by Wednesday’s gains on Wall Street.

Strong earnings reports from two bellwether stocks gave penny stock investors hope that rising interest rates wouldn’t kill profits. The recent sell-off, said one economist was “just turbulence.”

The turbulence, it seems, is continuing on this side of the pond. U.S. stocks traded flat to lower Thursday as the market took a breather as higher oil prices and downbeat economic data curbed Wall Street’s momentum. So, what are we to believe, is the market heading up…or heading down?

How does the market look in general terms? As far as stocks are concerned, the S&P index is up just 0.3 percent for the year, the Dow is up 3.4 percent and the NASDAQ is down 2.9 percent. Not sparkling data.

But for penny stock investors, the recent roller coaster ride that many seasoned blue chip investors are reeling over, is just par for the course. We know that a penny stock is often volatile and just as unpredictable.

While a penny stock may be more vibrant when the market is upbeat, in general, a penny stock marches to its own tune. Why? Few investors venture into the field of penny stocks because they are either unwilling or unable to do the work required to accurately predict what these shares may do.

By their nature, it is nearly impossible to know what price a penny stock share should be trading at, and conventional financial ratios and industry comparisons are rarely effective measures for realizing a penny stock’s value. Large one-day percentage gains and losses are not an uncommon occurrence for penny stock investors.

So really, bull, bear or cat…it’s just another day at the computer screen for penny stock investors. The work may be fun…but it’s not easy. Of the 14,000 public companies in the U.S., about 3,300 are considered penny stocks that trade on the OTC Bulletin Board operated by the NASDAQ.

Their visibility is low, chances are you’ve never heard of their CEO and I doubt they have any institutional following. And while they’re highly speculative, the more promising ones have a targeted business plans, and solid positions in niche markets. And for now, they’re flying under the radar of Wall Street

So what do you do in an unpredictable market like the one we’re in? Continue applying the same principles you’ve always used when searching for that untapped penny stock. And enjoy the volatility.

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Crush the Stock Market Without Trading Stocks

Crush the Stock Market Without Trading Stocks

Do you look at the stock market and wish you’d bought some Google stock back when it was first offered for $104? You’d have gained nearly 300% on that investment in the first year – that’s roughly 9.2% each month! That’s a Wall Street level of success!

Imagine if I could show you an investment opportunity that could easily give you over 14% monthly? What if 21.5% per month was within reach? These yearly returns of anywhere from 500% to 1000% are possible for anyone who has the initiative to go out and get them. That’s 2-4X MORE than GOOGLE, one of the fastest growing stocks IN HISTORY! We’re talking about an investment opportunity where your returns will crush even the top gainers of the stock market. Are you starting to get curious about how these numbers are attainable?

You can beat the stock game by playing a different game, the Foreign Exchange trading game. Also referred to as Forex, the Foreign Exchange market is where one country’s currency is traded for another’s. You can buy 1100 Euros for $1000 US Dollars while the exchange rate is at 1.1 Euros/Dollar. Then you can sell the Euros back to dollars for $1100 (and a nice $100 profit) if the exchange rate moves to 1 Euro/Dollar.

$100 may be nice, but that 1% return on the $1000 doesn’t sound like the path to your 500% returns, does it? Here’s how that 1% gets its power: Leverage. With Forex, if you have $300 in your account, you can control a $10,000 trade. That makes your money a lot more powerful than the $1-$1 control you get in the stock market! If you’re thinking that you can lose more money this way too, just read on, you’ll learn why that won’t happen.

Consider this: The Foreign Exchange market has a DAILY trading volume of around $1.5 trillion dollars. That’s 30 times larger than the combined volume of all U.S. equity markets (that includes the NASDAQ and NYSE). This is an untapped resource, and you’re about to learn five simple steps towards taking your share out of that market and into your pocket.

1. Get Educated!
As with all things, the more you know about trading, the more likely you are to success. A little effort spent learning up front can save you hundreds and thousands of dollars of mistakes later.

2. Have a Strategy!
A simple repeatable system can turn trading into a low-risk mechanical system. Know when you should trade, how often you should trade, how much money to spend per trade, when to cut your losses, and when to take your profits. Push the right buttons at the right times, and you’ll make money.

3. Practice Makes Perfect!
Most Forex brokers will allow you to sign up for a practice account, where you can trade imaginary money until you’ve solidified your winning strategy. Don’t risk your hard-earned cash until you’ve proven that you’ll succeed

4. Scrape Together $300
That’s 2 months of brown-bagging lunch instead of buying it; or a few months of cutting down on the daily coffee-shop visits. If you start now, by the time you’ve learned a strategy and perfected it on your practice account, you’ll be ready with your $300 to start earning real money. More money is always better, but $300 is the minimum you’ll need to get started.

5. Go Out and Succeed!
By the time you get to Step 5, you KNOW you will succeed, and you’ll spring out of bed every day ready to make your profit. Some days you’ll lose a little money, but you won’t worry. Your strategy allows you to lose a little money from time to time; you proved that losing money periodically wasn’t the end of the world when you practiced; you’ll get up tomorrow and make it back by following your proven strategy.

Starting with your $300, if you made “Google Gains”, you’d have $862 in a year. That’s not bad. With Forex gains, though, you could easily turn your $300 into $1500-$3000 in a year! Who need the stock market?!?

Saving the best for last, here’s the shocking truth: The 500-1000% yearly returns are possible, but with a smarter strategy you could turn your $300 into over $10,000 in less than a year without increasing your risks! Best of all, you can do all of this over the Internet without leaving home. That’s 3000% while wearing pajamas. With these kinds of returns, you could realistically quit your job and trade full-time!

If you could use more money if your life (and lets face it, we all can), you owe it to yourself to learn more about Foreign Exchange trading.

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