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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. As you probably guessed, a system this effective comes at a rather high cost, but
there is an inexpensive way for even the smallest stock investor to get beneits from 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. But, if you took that same $1000 and invested it in a penny stock selling at
$1 per share and then it increased by $1 per share, you would earn $1000 on your investment!
Unfortunately, for the same reason that penny stocks can make so much money so quickly, they
can also lose a lot of money quickly, which is one of the big reasons you need to be very careful in
buying. 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. It is often
very hard to get reliable information to really evaluate penny stocks, as companies that issue
these stocks are not legally required to file financial reports with the Securities and Exchange
Commission.
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. It is normal for
investments with the greatest potential rewards to also have the greatest potential risks, but in
buying penny stocks, the relatively large amount of fraud drives the risk much higher than what
would occur just from the whims of the market.
In order to reduce the risks of buying, it has usually required a large amount of time and effort to
evaluate the stocks so that one could avoid the frauds and obtain a good return on investment. 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. Using this system,
even complete novices have the potential to make good returns on their penny stock investments.
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, part-time investor from San Antonio, Texas. For more information about
Marl and how he works, please visit Buying Penny Stocks.
Article Source:
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