The Penny Stock Experiment is a project I started on January 15, 2010 to track the performance of my penny stock trading strategy. I've identified a unique strategy that puts the odds of profiting from each trade in my favor and believe that I can return over 150% annually with minimal risk to my initial capital.
Most penny stock trading sites are paid to advertise certain stocks. I am NOT COMPENSATED by anyone. I use these alerts from pump & dump alert services to my advantage. They're an integral part of my trading strategy. These alert services inflate and exaggerate their returns by sending an alert that suggests entry into a stock at a price equal to the prior days closing price. However, by the time you get the alert you won't be able to buy any shares for that price! The bid and ask prices will have skyrocketed and your entry into the stock will only make the pump & dump alert service rich, since they themselves purchased the stock in the prior trading session. My strategy outsmarts these scammers!
In general my strategy will consist of the following:
- Limit entries to less than 10% of the previous day close to avoid getting in too high on morning optimism.
- If my limit doesn’t hit by 10:30am I’ll generally close my limit buy order.
- I’m typically looking for a 5% to 10% profit per trade. The goal generally a quick-in, quick-out profit.
Follow my trading picks to see how much I can return on my initial investment of $2,000! Each of my posts will include a performance update of the specific trade and my cumulative return to date.
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