Penny Stock Trading – Fastest Way to Millions in the Stock Market?

 

There’s a lot of debate as to what is the fastest path to making millions in the stock market. If you’re starting with just a little capital, penny stock trading can certain pay huge rewards.

What exactly is penny stock trading though? Actually, if you buy a stock with the intent to sell it in a short period of time (minutes, day, weeks, couple months, etc), you’re basically a trader. A stock investor is typically someone who will buy stocks in a company and let them sit there for at least a year—usually many years.

I’ve made big returns on penny stocks with one trading day and I’ve had others that were simmering for months before they bubbled up.

Perhaps a better question is simply about the profitability of penny stock trading in general. After all, the real goal to wealth building is to find a vehicle that makes a profit and then improve or replicate that vehicle. While grand slams are great, most wealth is built through a constant barrage of profitable singles (if I can steal some baseball terminology).

I think researching penny stocks is more vital than anything else. Many stock traders just look for charts and technical items, but if you look at penny stocks that experience 100%, 500%, 1,000% and more growth, it was because of the company and not because the stock hit some technical indicator.

In other articles, we’ll talk about penny stocks and about things to look for. One idea is to look at the big companies and see who they are dealing with and what they are dealing in. That’s how I identified one penny stock that yielded me 1,000% profit when I dumped it.