There is a lot of people that want to know how to profit from penny stocks.
Penny stocks have been given a bad reputation lately by people who have no idea about them.
They say that they are to risky and do not make good investments.
Well, I live off of penny stocks and I live pretty well.
There problem is lack of knowledge.
They view penny stocks like the view long term investment and it does not work that way.
I am going to give you a few hints on how to profit from penny stocks.
One thing I use all the time to profit from penny stocks is trends.
A trend is a pattern that you can identify in the stock price over a time range.
For example, look up the past two years of a stock you are interested in and see if you see any trends.
You may notice that the price rises for many months and then drops suddenly.
Now that you know this information, you know not to buy at the peak but right after it drops.
Then it is all profits while it raises.
Make sure you do not get greedy and keep it until it drops.
Unload it when you reach your goal! If a stock has a large average trade volume, it is a good sign for a great investment.
The larger the trade volume, the more true to the trend the stock will stay.
This is an important factor that should not be over looked.