Pink Sheets Stocks
Picking Penny Stocks Just Got Easier

Question: How did this guy successfully predict this winning Penny stock?

ANSWER: It’s pretty easy! Read below.

How Successful Penny Stock Newsletters pick Penny Stocks

FACT

• A stocks fundamentals and traditional technical analysis have very little to do with a particular pick!
• There is no special hidden formula!
• There is No genius algorithm professor behind the big curtain
• Jimmy, the high school math prodigy, is not picking the big winners..
• Psychic Susy is not picking the winners either

So how do Penny Stock News Letters Pick stocks?

A) Promoters with incredibly large email lists are solicited by small cap companies to hype the stock to hungry traders for quick day trades and huge profits, thereby leaving unskilled amateurs left holding devalued shares after the big climb turns to an even bigger fall.

WHAT DOES THIS MEAN FOR YOU?

Armed with this very knowledge and having a dozen or so disciplined practice trades under your built, you can begin to see both the nuances of the market and how newsletters can be used to make you money.

Turning the gears of a Penny Stock Newsletter

It’s standard practice for small cap companies to promote their stock via a stock promotion service. A stock promotion service is nothing more than an advertising agency. Some promotion services charge on the order of one hundred thousand dollars or more to promote a particular stock. They pull all the stops and exploit the penny stock via twitter, facebook, and email. Imagine a promotion service with a million email subscribers, a hundred thousand or so twitter followers and maybe a facebook fan page with another hundred thousand followers. That’s a lot of people intercepting the latest pick.

What does this do to the stock price?

If the company has a small float (small pool of available trading shares, not counting restricted shares), and a good promotional campaign is in effect, you can rest assured that the supply of the stock will dwarf in comparison to the demand of hungry traders lining up to purchase as many shares as possible!!!!!
Speculators make huge gains in penny stocks by simply playing the pump and dump game.

And how exactly does the pump and dump game work?

Penny stock promotional campaigns require three important conditions to be successful and it has absolutely nothing to do with the company itself:

1. A stock promoter
2. A press release
3. momentum

A stock promoter: Promoters such as microcap millionaires and the  penny stock prophet newsletter will be compensated by the company to promote the stock. These two paid services have huge email lists, are picky about the companies they promote and have a decent track record picking penny stocks, as a result.

Press Release: The buildup to a great promotional campaign is often accompanied by a press release. When the company has something good to say; maybe a new product or a good quarter, they will broadcast, via media outlets, positive information to prospective investors.

Momentum: Usually the promotion service doing all the hyping, is already aware of the news contained within the press release, a few days prior to its public release and is often the source of information used to hype the stock. This in turn, creates the volume (momentum) to drive the stock price up. Some jump hundreds of percent in a single day.

IMPORTANT

You’ve got to be apart of a good penny stock newsletter so you can get informed before the pump starts.
In addition, you need a few more things to trade effectively and make a profit.

1. Never Ever place a market order on a penny stock under any circumstances!!! Limit orders only!!!
2. ALWAYS have a stop loss on your stock!!!!! Do not ever purchase a penny stock without having a stop loss!!!
3. Do not be greedy!!! This will dwindle your trading account quickly..
4. Trade with what you are willing to lose in a slot machine because sometimes promotions fail!

OTCBB stocks and especially Pink Sheets stocks should be bought and sold within the same day or a couple days at the most!! You’ll be holding a super tanking stock if you keep these bad boys any longer than that!!! The potential downside is much larger as compared to the benefit if you risk keeping the stock longer than one trading session. It’s safer to sell with an above average profit and jump out the same day than waiting to see what happens.

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