Buying penny stocks, although it can be highly profitable,
can also be very risky. The amount of risk involved can be
significantly lowered by thoroughly researching the stocks
you are interested in, but the research can be very
difficult and time consuming.
There is a new computer "bot" that has been created that
analyzes penny stocks thorough in-depth mathematical
analysis and by doing so dramatically decreases the risks
and increases the profits from buying penny stocks, while
greatly simplifying the work of choosing what stocks to buy
and when. Of course, such a system does not come cheaply,
but there is an opportunity for even the smallest of
investors to reap the benefits of it.
Penny stock investing has big advantages when it comes to
large, rapid returns on investment, and the fact that penny
stocks are priced low enough for even very small investors
to buy stocks and have the opportunity for a diversified
portfolio. Because penny stocks have such low values, just
a few cents change in the price of the stock can equate to
a huge change percentage-wise, and potentially a huge
profit to the investor, depending on the amount of the
total investment, particularly in comparison to the profits
possible with larger value stocks.
To show the power of penny stock price changes, let's do a
comparison. If you wanted to invest $1000 and found a
stock you decided to buy at $100 per share, if it increases
by $1 per share, you'll have made $10. On the other hand,
if you invested $1000 in a penny stock that initially sold
at $1 per share and it increases by $1 per share, you'll
make $1000!
Now, by the same token, penny stocks can lose a bunch of
money very quickly too, which is one reason why it is
important to be very careful when buying penny stocks.
Another reason that penny stock investing is risky is
because of shady or outright fraudulent practices of some
individuals involved in marketing and selling penny stocks.
Because companies that issue penny stocks are not required
to file financial reports with the SEC, it can be difficult
to obtain reliable information to really assess the stock.
Various unscrupulous tactics may be used to lure
unsuspecting investors into buying penny stocks as a ploy
to drive up the stock price and then insiders may quickly
sell of their stock at a high price. The sell-off drops
the stock value sharply and the investors take a big loss.
In investing, it is typical that investments with the
highest potential returns will also have the highest risk,
but in penny stock investing, the high rate of fraud
increases the risk well beyond just what is produced by the
natural tendencies of the market.
To overcome the risks, buying penny stocks has
traditionally required a large investment of time to
research stocks to avoid the scams and predict a relatively
good rate of return. A careful penny stock investor could
spend quite a bit of time evaluating a single stock. This
effort would hopefully pay off in the long-run, but the
time required in doing this often made penny stock
investing out of the question for part time investors.
Then along came "Marl", which is a penny stock buying
computer bot designed by a couple of guys that had the
unusual combination of computer programming expertise and
in-depth understanding of stock investing. Marl has
several advantages over human investors, but the biggest
advantage Marl has is that there are no emotions involved
in his stock picks. Marl makes his picks based on cold,
hard, statistical calculations. Plus, Marl can do a
detailed analysis of hundreds of stocks in less time than
it would take even an expert stock analyst to do a cursory
evaluation of just one stock. This doesn't completely
eliminate the risks of buying penny stocks, but it does cut
down on the risk considerably.
Marl has been so effective that he has allowed for huge
gains by advanced investors. Because of this, Marl is
considered a bargain at the $28,000 licensing fee, but
bargain or not, this is well beyond the means of small
investors. There is an option to use Marl that is
available to investors with even the smallest of budgets
though. The guys that developed Marl put out an
e-newsletter that gives Marl's top penny stock pick for
each week. For new investors, this might be even better
than buying the full Marl program, as it narrows down the
investment options to just one stock every week, instead of
figuring out what to buy out of hundreds of options. With
this, even the most novice of penny stock traders can do
well with penny stocks.
Although the inventors of Marl have indicated that they
will be limiting their subscriber list to the newsletter
and may stop selling new subscriptions in the near future,
hopefully they will have compassion for the small investors
who need all the help they can get and continue to allow
new subscribers long-term. In the meantime, small
investors now have an option to dramatically assist them in
buying penny stocks.
----------------------------------------------------
George Best is a small investor from San Antonio, Texas.
To learn more about Marl and how he works, please visit
http://pennystocks4u.com (*Note - There's no www in that
URL).
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