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Buying Penny Stocks The Easy Way

Dec 26, 2007
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.

A penny stock picking robot has been developed that provides in-depth statistical analysis of stocks to predict investment returns and in the process greatly reduces the risks and enhances the potential profitability of buying penny stocks while drastically reducing the work involved in choosing stocks. This technology of course comes at a rather high price, but there is a way for even the smallest of penny stock investors to profit from it.

There are some big advantages to penny stock investing. The small price of each stock allows even very small investors to have diversified portfolios. Due to the fact that even a small dollar amount change in the price of the stock can have a major percentage change, it is possible to get much larger returns with penny stocks than with higher value stocks, and such returns can be made with small intial investments.

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!

Because of the percentage of value change that a small dollar value change makes in penny stocks, you can lose money very quickly too. In addition to the inherent risks from normal losses in value, penny stock investing has more than its fair share of scams and fraudulent practices. Companies that issue penny stocks don't have to file financial statements with the SEC (although some do so voluntarily), so it can be very difficult to find the necessary reliable information on a company to do a thorough analysis of the stock.

In some instances, hard-sell marketing tactics, such as email spam campaigns, paid promoters making cold calls, exaggerated press releases, and "boiler room" operations may be used to lure unwary investors into buying a stock to drive up the price and then the insiders suddenly sell off their stock at the inflated value, leaving the investors holding the bag as the price drops like a rock. As with any investment, the higher the potential return, the higher the risk, but in penny stocks, the relatively high potential for fraud drives the risk even higher than what is seen in other investments that are simply at the whim of market forces.

Until recently, buying penny stocks required a tremendous amount of research and evaluation of stocks to avoid scams and have a decent chance of getting a good return on investment. A prudent penny stock investor might need to spend hours of work just to evaluate one stock. Done right, this work would likely pay off, but the necessary time investment put the high profitability of penny stock investing out of the reach of casual part-time investors.

A couple of computer geeks who also had an in-depth understanding of penny stock investing have recently developed "Marl", which is a computerized bot that can evaluate hundreds of penny stocks in less time than it would take a human to evaluate just one. Unlike human stock-pickers, Marl is 100% cold and calculating - there's no emotion to cloud his judgement. Although even Marl doesn't have a perfect track record, he's a lot better than any human, and Marl can dramatically decrease the risks involved with penny stocks.

Marl has allowed some big investors to make many millions of dollars, and as such, Marl doesn't come cheaply. At $28,000 to purchase Marl, he's out of the question for most investors, but there is a way for investors with even the smallest of budgets to use Marl. Marl's human inventors put out a very affordable newsletter with Marl's top penny stock pick each week. In the case of those investors new to penny stocks, this could be preferable initially to owning Marl, as it limits their investment choices to just one stock per week as opposed to having to select from many options. This makes for easy stock investing for even the newest of "newbies" to penny stock investing.

Sadly, Marl's inventors are indicating that they will soon cease to offer the newsletter to new subscribers. Hopefully they will reconsider and continue to offer this valuable service that puts small investors on a more even playing field with large investors. For the time being anyway, Marl provides small investors with a great opportunity to profit from buying penny stocks.
About the Author
George Best is a small investor from San Antonio, Texas. To learn more about Marl and how he works, please visit buying penny stocks.
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