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									Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


Hey there. It‟s Tim Sykes again. As you may recall on my last video, I
exposed the ugly underbelly of the penny stock market and revealed how
you can easily identify the mini-Enrons and mini-Madoffs that infest it.
It felt good to make that video because the cockroaches behind those rip-
offs deserved to have the bright light of truth shined upon them as often
as possible. And if it sends a few of them scurrying back to the rat holes
from which they emerged and helps you protect your money from their
schemes, all the better. I hope you found that video enlightening and are
already using it to make yourself impervious to penny stock promoters
who want to take your money. However, if you haven‟t had a chance to
watch it, just click the link above once you‟ve finished this video, and
you‟ll be taken right to it. But don‟t wait too long because that video
won‟t be up forever.

So now that I‟ve gotten the truth about the dark side of penny stocks off
my chest, let‟s switch gears and move on to something positive,
something that can help you make a lot of money in the months and years
ahead.

In this video, I‟m going to reveal how I consistently pick the best and
safest penny stocks, using a one-of-a-kind five-step formula that I like to
think of as my secret sauce. Though it‟s been improved and refined over
the last 12 years, this formula is strikingly similar to the one I used to turn
$12,415 into $1.65 million in four short years, a feat I described in the
first video. And it‟s the formula that has helped me compile an enviable
track record over the last few years including returns of 197% in 2008,
141% in 2009, and 55% in 2010. In other words, if you‟d been taking my
advice in 2008, you‟d have nearly tripled your money in just one year,
and then you‟d have better than doubled it in 2009. We took a little
breather in 2010 but you still would have increased your portfolio by
more than half.

These are the kinds of returns that build fortunes, and if you‟d been with
me the entire time, you could have turned $25,000 into $277,360 in just
three years. And get this, even if I only repeat my “meager” 55% 2010
gains for the next three years, that 25K will grow to over $1 million.
Think about it for just a moment, from $25,000 to more than $1 million in
just six years.

Other than risky options and futures, there‟s simply no other investment
on earth that can bring you these kinds of returns or help you build that
kind of fortune in so little time. I realize this isn‟t the millions and

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Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


millions in overnight profits promised, but never delivered by the penny
stock promoters, but it is enough for you to grow your portfolio
significantly every year and to fund a pretty luxurious and relaxed
retirement down the road. And isn‟t that what it‟s all about?

Now, before I get into my formula, let me give you a few examples of
some of the stocks that have helped me generate the returns that are
making my subscribers rich.

Online video company Subaye handed us a seemingly wimpy 8.52%
return, but the good news is, it handed us those profits in just one day. A
few days later, and some of my more patient subscribers were sitting on
gains of nearly 50%. It took us three days to snag a 9.4% gain on SNAP
Interactive, a company that makes online dating applications. But again,
while I‟m not patient, and I like taking my profits quickly, a few days
later, the stock was up by more than 20%.

This is why I‟m so proud of my research because my subscribers can
profit over various time frames, whether they‟re impatient like me or if
they choose to hold the stocks a little longer. We also made 13.64% on
Diedrich Coffee, 29% on H&H Imports, and 42.56% on Luna
Innovations, and 55.73% on Liquidmetal, and these are just a few of the
plays of my many wins basically because my strategy is that good. And
the profit opportunity is there in a matter of days or weeks, no waiting
around for months while the stocks languished and kept us up at night.

Now, later in this video, after I‟ve described my five-step formula, I‟m
going to walk through exactly how I identified amazing opportunities like
Zagg, Diedrich and Liquidmetal, so you can see my formula in action.

By the way, I also sometimes run my formula sort of in reverse, with a
few tweaks of course, to short stocks that I can clearly see have been
artificially pumped up. Of course, shorting has added risks so it‟s not for
everyone but it can bring you some nice profits such as the 44.07% I
made shorting Willow Creek Enterprises, the 39.18% I made on NXT
Nutritionals, and the 19.49% I made on Clean Power Concepts, each
within just a few days. But like I said, shorting isn‟t for everyone, and
most investors should steer clear of it.

So in this video, I‟m just going to stick to my proven formula for picking
big winners.        Fortunately, my formula is fairly simple and
straightforward, and once you master it, you can use it yourself to find

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Proven Secrets for Picking the Penny Stocks That Make You Win


penny stocks on the verge of breaking out for big gains and big profits.
But I‟m not going to lie to you and pretend that my formula is foolproof
or that it doesn‟t require work. In a typical week, I spend up to 60 to 80
hours looking for penny stock profit opportunities.

No, you won‟t have to work that hard, I‟m just obsessive the way, but my
subscribers want fresh picks on a regular basis. And I don‟t provide
them, those subscribers are gone. But I will warn you right off the bat,
this isn‟t some lazy man‟s way to riches. Nor is it going to bring you the
massive 1000% returns overnight. And anybody who tells you different
is flat out lying to you. After all, if finding fabulously profitable penny
stocks were as easy as the penny stock promoters make it sound, we‟d all
be rich and I‟d be out of business. Good thing, they are straight up liars.

The fact is, if you‟re going to make money in penny stocks on your own,
you‟re going to have to do a lot of research, look through a lot of charts,
plow through some SEC filings, keep your eye on company news and,
most importantly, keep your emotions in check, and make all of your
decisions based on facts and logic, while ignoring the fantasies spun by
penny stock promoters.

Alternatively, you can have me do all the work for you by joining my
new Penny Stock Millionaire program, a new service devoted to bringing
you the best, most profitable penny stock opportunities every month. But
I‟m getting ahead of myself. I won‟t have all the details about Penny
Stock Millionaire for a few days, and I‟ll tell you all about it then. But I
will tell you that I‟m going to giving away three free memberships I that
program, and I‟ll reveal exactly how you can win them at the end of this
video. Okay, if you‟re ready, let‟s get started and discover how you can
uncover the penny stocks that can make you rich.

Not surprisingly, the first step in my process is to find a penny stock that
has actual profit potential. Most penny stocks will never make anyone
any money so you have to dig deep to find the winners, and I start by
compiling a watchlist of stocks that have caught my eye for one reason or
another. Essentially, I‟m looking for companies that have had big up
moves, have announced solid earnings or have had something positive
happen to them, such as a joint venture or contract with a big company, a
new product that has really caught on or anything else that is good news
for the company and raises its profile.




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Proven Secrets for Picking the Penny Stocks That Make You Win


In short, I‟m looking for companies that are big recent winners and that
have the potential to have a run-up that lasts more than a few days. It‟s
crucial, however, that you separate real news from promoter hype. Penny
stocks are forever issuing press releases announcing all sorts of wonderful
things that are supposedly happening or are on the verge of happening.
Most of this stuff is hype, and I never believe anything I read in a
company press release. And unless I can independently confirm the news
via an SEC filing, then I simply dismiss it as hype. And by the way, it‟s
also a good idea to refuse to consider deals that might happen, sales that
might take place or earnings that might be coming. Too often, the deals,
sales, and earnings never quite pan out the way the company said they
would. And you‟re left holding the bag if you bought the stock.

Of course, ignoring this stuff does cost me some gains from time to time
but it also protects my subscribers and I from large losses that would far
outweigh the gains. So where do I find news about a company that can
put it on my watchlist? This may surprise you but one of the best places
to look is on one or more of the stock market message boards that have
proliferate across the Internet. Now, let me warn you right off the bat,
these boards are overrun with scammers promoting the stocks they own
and bashing the stocks they‟re shorting. And the more sophisticated
sharks promote crummy stocks that they plan to short, knowing that once
the hype drives up the price, they can clean up when it crashes. So look
to these message boards as a source of ideas only, and all you‟re looking
for are stocks to investigate further. Never ever believe anything you
read on these boards. Your attitude needs to be never ever trust but
always, always verify.

You may be wondering, of course, why I‟d look to message boards for
breaking news about companies. After all, don‟t I want to get a jump on
other traders by hearing the news first? Not on your life. I used to drive
myself crazy trying to be the first guy to hear about any news, good or
bad, about a company. But what I discovered is that it didn‟t help me to
be the first guy to know, and often my crazed desire to be first got me
into lousy stocks.

What I learned over the years is that when my system, good trades
develop over days and weeks. They‟re not dependent on me being the
first guy in. In fact, my win rate is far greater when I sit back and wait
for the best stocks to come to me, and that makes my job and yours a
whole lot easier. You can literally wait until moves happen to begin your
research because there are plenty of penny stocks where one big move

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Proven Secrets for Picking the Penny Stocks That Make You Win


means another big move is coming. And the best up moves usually take
days, weeks or even months to pan out. So you and I have plenty of time
to get aboard, and my system is designed to identify those plays.

Okay, back to the message boards for a moment. Now, you can get
carried away and drive yourself crazy hopping from message board to
message board, reading hundreds of posts and trying to lock into every
single possible opportunity. Don‟t do it. You don‟t need every
opportunity. You just need one or two good ones a month to make a
pretty nice living in this business. So focus on finding a few good stocks
for your watchlist. Yes, you‟ll miss a few opportunities but you‟ll also
stay sane. I suggest you focus on just one or two message boards and
leave it at that. My all-time favorite message board is called „The Lion‟
and you‟ll find it at www.TheLion.com. Right off the back, you‟ll notice
something really cool about The Lion. You can punch in any ticker
symbol right in the landing page, and you‟ll be taken to every single post
on the Internet about that stock. It‟s a great way to get an idea of what
others are saying about any stock you‟re considering.

But that‟s not usually what I‟m here for at this point. At first, I just want
to see what traders are talking about in general, and my favorite forum for
this is called „The Wall Street Pit‟ which you‟ll find when you scroll
down the landing page. Here, I just listen into the chatter, find out what‟s
on traders‟ minds and looking for breaking news and stock ideas. But I
never ever take this information at face value even when it comes from
someone I trust. More than once, I‟ve come across a good reputable
trader who either falls in love with some crappy stock or gets taken in by
some scam because they want to believe. Your best bet is to picture
every single poster on these boards, including the moderators, as your
worst enemy in the world. Of course, it doesn‟t mean there aren‟t great
people on these boards, there are and plenty of them. The problem is,
you don‟t know who they are, and it‟s sometimes impossible to tell the
good guys from the scumbags. So use the message boards to get stock
tips but independently verify everything before you make a move.

You‟ll find www.TheLion.com fascinating, and you‟ll find more than
enough there to keep busy. But I also urge you to check out some of my
other favorites from time to time, including www.RagingBull.com and
www.SiliconInvestor.com. I also occasionally also get some ideas from
the boards on Yahoo Finance at http:\\finance.yahoo.com.




Transcribed by: mfjdeguzman@gmail.com                              Page 5 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


By the way, there‟s also a great message board that tracks pump and
dump penny stock scams, and it‟s absolutely the best source I‟ve found to
quickly find out if any of the stocks on your watchlist are pump and
dumps. Check it out at – this is a mouthful, it‟s worthwhile, just pause
the video right here and watch this and visit frequently just to keep your
emotions in check. Okay, so that‟s step one, compile a watchlist of
stocks that might be worth buying down the road, and add to it any time
an interesting stock comes on to your radar. Once you‟ve done that, it‟s
time to move on to step two, watch for a technical breakout. This sounds
complicated and math-oriented but it‟s really pretty simple.

You see, most penny stocks tend to languish at below a certain price for
months on end. They just can‟t simply get beyond a certain price. And
often when the price does rise, insider selling often brings it right back
down to earth. But when something happens at a company, something I
don‟t know about, its price will often start to move. And eventually it
will climb above the price that it‟s been stuck at. It will break through the
glass ceiling, so to speak. So for example, let‟s say a penny stock has
been selling for $1 per share for the past six months, and then out of the
blue, the stock starts climbing from a $1 to $1.10 until it eventually hits a
$1.20 a share. This indicates a technical breakout may be happening.

Here‟s a chart that gives you an idea of what I‟m talking about. Chart
like this tells me that the stock is worth taking a closer look at it,
especially if that breakout helps the stock achieve a multi-week, multi-
month and multi-year high, meaning the price is the highest it has been in
the number of weeks, months and/or years.

I also like to see strong volume in that stock with at least 50,000 shares
changing hands every day. Rising volume too is an indicator that the tock
may be springing to life. You see, when one of these breakouts occurs,
the stock starts showing up on the screens of active traders all over the
world, something which almost guarantees to increase action on the
stock.

But don‟t worry, you don‟t have to beat these traders to the punch.
You‟ve got time because these breakouts, except when they‟re generated
by a pump, generally mean something exciting is happening at a company
and that the move will last long enough for you to get in for some nice
profits.




Transcribed by: mfjdeguzman@gmail.com                              Page 6 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


So how do you know when a breakout is happening? It‟s easier than you
might think. It‟s just a matter of generating the charts that reveal this. To
do this, I use two different services, www.StockCharts.com and
www.StockFetcher.com. You‟ll have to lay out a little cash to use these
services, but they‟re absolutely indispensable if you‟re going to trade
penny stocks on your own without my help.

Each site allows you to set up a watchlist of stocks to follow, and then
every day, you check out their charts and look for technical breakouts.
Let me stress, however, that you have to do this every day, or else you
risk missing an important move in the stock that you‟re watching.

I also suggest that you set up charts to identify the penny stock market‟s
biggest three- and five-day winners, percentage wise and to look for the
biggest dollar gainers under $10 a share. This is another way to both
identify new stocks for your watchlist and to spot stocks that may be on
the move and are worth investigating further.

I use both www.StockCharts.com and www.StockFetcher.com. That‟s
because their stock databases differ slightly and one or the other is often
missing one or more of the penny stocks I‟m following, and I don‟t want
to miss an opportunity just because a stock fell between the cracks. So be
sure to use both.

I also use E*TRADE‟s powerful software Power E*TRADE Pro, and I
urge you to check it out as well.

When you‟re ready to start trading on your own, I urge you to go to each
site, take their tours and compare their different plans for yourself. You
can probably just do fine with each site‟s cheapest plan. Also, if you look
below, you‟ll notice a link to a free download of all the resources I talk
about in this video, complete with live links to each of these sites, as well
as a few others I mentioned in this video.

I‟m going to show you several examples of technical breakouts in just a
moment, but first I want to reveal the other criteria a stock must meet
before I‟ll recommend buying it, because a technical breakout alone is
never enough to make me buy a penny stock. If a stock starts breaking
out, it‟s time for my research to begin. I want to find out everything I can
about the stock to make sure it has the legs and that the move is real, and
that‟s when I make my move on to step three. I want to make sure the
company behind the stock is in a red hot sector.

Transcribed by: mfjdeguzman@gmail.com                              Page 7 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win



What‟s your red hot sector? In a nutshell, it‟s a market with people who
are already rabidly buying the product or service in question. I‟m not
interested in companies that are selling things nobody is buying yet, or
that have awesome, but unproven, technologies, or that are pioneering
new markets. I don‟t want the next big thing because I‟ve found that
finding it is near impossible and means I have to take on a level of risk
that is simply too much for my subscribers and myself. Instead, I love
copycat stocks that do what other companies are already doing
successfully. Does this mean I miss out on opportunities from time to
time? Yeah, it does. But you know what? It also protects me from the
colossal bombs. And when you trade penny stocks, protecting yourself
from a big loss is even more important than going after a monstrous gain.

In a way, this part of my strategy is comparable to how I‟ve read that
Burger King decides to open new restaurants. Rather than pioneer new
market areas, Burger King simply watches what McDonald‟s does.
Before opening up a new restaurant, McDonald‟s researches the market
like nobody‟s business. So Burger King sits back and waits for
McDonald‟s to open a restaurant, and then it swoops in and opens its own
restaurant nearby. It reduces their risk dramatically while increasing their
odds of success.

I follow a similar strategy with my pips, and I believe it keeps me out of a
lot of trouble. In fact, it‟s a great way to avoid pump and dumps,
especially in the technology sector. Remember, Emergent Health
Corporation, the pump and dump I mentioned in the first video, as you
may recall, the company claimed they could inject stem cells into
vitamins as a way to “rejuvenate life”.

I didn‟t have to know anything more than to know this company wasn‟t
for me because it was supposedly pioneering a brand new technology.
And like I said, I avoid pioneers like the plague. Of course, as it turns
out, Emergent was a nasty pump, and the SEC ultimately shut their stock
down. But it‟s just one more reason to stick to hot sectors that don‟t
require breakthrough discoveries to get them going.

Okay, so that‟s step three. Let‟s move on to step four, which is really just
an expansion of step three.

Once I find a penny stock in a red hot sector, I start to look for a
comparison company. What‟s a comparison company? It‟s a competitor

Transcribed by: mfjdeguzman@gmail.com                             Page 8 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


in the same business that is doing well and has already seen its stock price
went up in price. This tells me that the company has a chance to last long
enough to make me a little money on it. And I also know that since
traders have already made money in a similar company, or watched as
other traders made money, they‟ll be looking to pounce on any similar
companies that come along that might bring them some profits.

So whenever you‟re looking into a company, take a look at its
competitors to make sure it‟s a viable business and that the stocks behind
these companies see some action. Again, I‟ll give you a few examples in
a moment, and that brings us to the final step.

I also want the company to have what‟s called a catalyst. What‟s a
catalyst? Well, a catalyst is anything that triggers the penny stock to
move. Think of it like trying to start a campfire. You have dry logs, a
bucket of gasoline, and a camp site. But without a spark, you‟ll never
start a fire.

Same goes for penny stocks. A penny stock needs something that gets it
moving. There are a number of things that can act as a catalyst. For
example:

        Media attention.
        A new patent.
        FDA approval for a product.
        A contract or a joint venture with a much larger company.
        An approaching IPO for a company in which it has a significant
         ownership stake.
        Or even the hiring of a new CEO.

When these kinds of things happen to a company that meets all of my
other criteria, look out above because you may have a stock on your
hands that‟s ready to go through the roof. But be careful. As I
mentioned, companies are always releasing hype-filled press releases,
loaded with speculation that one of these catalysts is about to come into
play for the company, and that makes it absolutely crucial that you review
each company‟s SEC fillings to confirm as much as you can about the
company. These filings are easily accessible on your broker‟s website or
through such popular sites as Google Finance or Yahoo Finance. When
you look at the SEC reports, you want to confirm as many details as you
can about any big news that has come out about the company, and you


Transcribed by: mfjdeguzman@gmail.com                             Page 9 of 15
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Proven Secrets for Picking the Penny Stocks That Make You Win


want to watch for red flags and that the deal will actually be bad for
shareholders.

For example, if a penny stock announces a contract with a larger
company, it‟s going to need cash in the bank to handle the contract. You
need to make sure the company has the cash, and you‟ll find that info in
the SEC filings. What you don‟t want is a company that has to raise
money to make this deal happen. If the company has hardly any money
in the bank, it‟s likely to use any stock price spike to raise money by
selling more shares. But such a move dilutes the value of shares owned
by current shareholders and is usually toxic for them.

Remember, if a company doubles the number of outstanding shares, the
shares you own instantly lose half their value, regardless of what‟s
happening in the stock market. Also, keep a sharp eye out for selling by
company insiders. If good things have happened, or are about to happen
at a company, why on earth would they be selling? It‟s often an indicator
that the news isn't as rosy as they‟d like you to believe.

Another red flag is when lots of options owned by company insiders are
on the verge of vesting. Meaning they can turn them into shares and sell
off big blocks of stock for big profits that kill the stock price. Companies
will often pad their press releases at vesting time in order to give the
executives a nice payday. That is the number one problem with penny
stocks. Many of them simply have too many people who got into the
stock at $0.02, $0.03, $0.04 and $0.05 a share, and they want to sell at
$0.50, $0.75 or even a $1 a share on any good news.

So keep a sharp eye on those SEC filings. It‟s not the most exciting
reading in the world, -- that‟s an understatement – but if you‟re going to
succeed in this game on your own, it‟s absolutely essential.

Okay, let‟s do a quick summary and then move on to a few examples.

First, I go to the message broads to hunt down hot penny stock ideas and
compile a watchlist of stocks. Next, I watch the stocks for technical
breakouts that alert me to look into the stock more carefully. Third, I
confirm that the company is in a red hot sector. Fourth, I make sure the
company has a competitor who is already doing well in the same market.
And finally, I look for catalyst that is triggering the stock to move higher.
Now, to make all this crystal clear, let me give you a few examples of
penny stocks I found using my formula.

Transcribed by: mfjdeguzman@gmail.com                             Page 10 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win



Let‟s start with a neat little company I recommended called Zagg, Inc.,
ticker symbol ZAGG. Zagg makes invisible shields that protect iPads,
iPhones, and other mobile devices. I found Zagg through a message
board and almost immediately saw it was breaking out to a 52-week high
on strong volume. Previously, the stock had been stuck in the low $1-
per-share range for nearly two years. You can see the move pretty clearly
on this chart, and it didn‟t stop until the stock hit $8 per share nearly six
months later. I also liked the fact that Zagg was in a red hot sector. In
this case, mobile media, which was taking the world by storm, and Zagg
tapped into that market with its protective shields for mobile devices.

Zagg also compared favorably to another proven winner, Forward
Industries, Inc., ticker symbol FORD, a company that makes leather
carrying cases for laptops, not an exact comparison but close enough for
my purposes. Forward had exploded on to the scene back in 2005 when
it surged from the single digits all the way up to $30 a share. As for the
catalyst, iPhones and iPad sales had just begun to zoom, both products
that encouraged the use of accessories like those sold by Zagg, and the
rising-tide-lifts-all-boats philosophy may have well explained Zagg‟s
rising sales.

I got my subscribers into Zagg immediately on the breakout at $1.49, and
it soared all the way to $8.00 a share before the move was finished.
That‟s the gain of 504% in just a few months.

However, I must admit, as I always do, I sold early and got out for just a
few percentage points after a few days. Yes, it‟s true. I‟m a far better
researcher than trader which is why if an imperfect trader like me can
make millions trading these stocks, I‟m confident that you can do better,
as many of my subscribers have learned.

And then there‟s Diedrich Coffee, ticker symbol DDRX. Diedrich was
cashing in on the home coffee craze, as consumers were buying home
brewing machines and coffees at premium prices. However, the company
didn‟t really grab my attention until solid earnings pushed the stock up
100% in one day, after its quarterly sales and profits really began surging.
Now, even though it had already seen a huge move in just one day, I took
a position when Diedrich was priced at $4.18 per share. I was looking for
a quick profit and got my subscribers out at $4.75 the next day later, a
nice 13.64% gain. Little did I know, Diedrich would surge all the way to



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nearly $40 a share within a few months. So anyone with more patience
than me could have made some truly spectacular profits.

I latched on to Diedrich in part because of that big earnings breakout and
the fact that it was in a hot sector. But I also saw that it compared
favorably to a similar company, Green Mountain Coffee Roasters that
had gone from $2 a share to $30 per share. In the end, Diedrich put some
nice profits in my pocket, and anyone who followed my advice to buy it
did pretty well, too, especially those who were patient.

Let me give you one more example, Liquidmetal Technologies, ticker
symbol LQMT. Liquidmetal is a tech company that does research and
development on new metal alloys. Of course, the very name Liquidmetal
conjures up scam in my mind and seems like something penny stock
promoters could have had a heyday with. After all, the murderous
Cyborg in Terrminator II was made of liquid metal and could morph into
anything he touched and even melt into the ground when needed.

So when I first heard about the company and its supposed impending deal
with Apple, I was skeptical to say the least. You can see the company‟s
technical breakout on the chart below. The stock was practically
comatose under $0.20 per share for years, and then it suddenly shot up
like nobody‟s business from $0.25 per share to $0.50 per share. The
rumor was that Liquidmetal had signed a deal with Apple for the
licensing of some of its metals. It was exactly the kind of rumor that
stock promoters would unleash in an attempt to pump up a stock.

But when I started digging around, I discovered that the company hadn‟t
hired a single stock promoter. Nobody was pumping the stock. In fact,
the company wasn‟t even putting out press releases about the deal,
whereas pumps put out a press release about every pie-in-the-sky deal
they can think of.

In any case, at this point, Liquidmetal had a technical breakout going
forward, and the promoters weren‟t behind it. I also liked the fact that
Liquidmetal was at least working in a hot sector, computers. It‟s a bit of
a stretch, I‟ll admit since it‟s a metals company. But in this case, my
experience told me it was close enough and that if this deal with Apple
were real, that would be enough to carry the day.




Transcribed by: mfjdeguzman@gmail.com                           Page 12 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


Deals with big companies are always great catalysts because they usually
mean a big spike in revenue, heightened interest from investors and a nice
run up in the stock.

You may have noticed that while Liquidmetal had a nice breakout, was in
a hot sector and had a great catalyst, I didn‟t list a comparison company
which, as I mentioned, is one of my key criteria. In this case, there was
no comparison company, but since all the other factors were so strong, I
decided to go with it anyway. In other words, every stock doesn‟t always
fit my criteria perfectly. So sometimes I have to weigh all the factors and
decide if the positives outweigh the negatives. However, I don‟t
recommend that you do this until you‟ve got several years of experience
under your belt. It‟s just too risky for someone who is new to this
market.

I got my subscribers into Liquidmetal at just $0.54 per share. I watched
carefully as the stock climbed to $0.84 per share the very same day.
Being a natural born coward, I decided a 50% gain in less than a day was
good enough, so we sold at $0.84 for a quick 55.73% gain. Our profits
would have been higher if we‟d just held on to the stock as the stock
actually shot up to $1.76 per share just a few days later. And while I hate
to miss out on profits, I also hate losses. Today the stock sits at $0.65 per
share. And I could just imagine how many investors sitting fat and happy
at $1.76 and thinking the stock would go higher rode it all the way back
down to $0.65 a share.

All right, so there you have it, my five-step formula for safely trading
penny stocks.

Let me recap:

   1. Find penny stocks with potential by looking for ideas on the
      message boards.
   2. Watch your stocks like a hawk every day looking for technical
      breakouts.
   3. Make sure each stock is in a red hot sector.
   4. Look for a comparison company.
   5. Look for a catalyst that will send the stock higher.

And remember, before you buy, always confirm as much as possible
about the company by taking a look at their SEC filings. If something



Transcribed by: mfjdeguzman@gmail.com                             Page 13 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


smells fishy, don‟t buy the stock. It‟s simply better to save your money
for another day than to have to make up for big losses.

Now, if you follow my five-step formula, you‟ll dramatically increase
your odds of success in the penny stock market. Of course, there are no
guarantees, and remember, I‟ve been doing this for 12 years now, and I
spend 60 to 80 hours a week at it. This has enabled me to develop a
certain instinct about the market and to spot little indicators that are likely
to escape your eye. And because of the hours I put in and my ability,
developed over the last 12 years, to immediately laser in on what‟s
important about companies pretty darn quickly, I‟m able to evaluate
many more opportunities than most investor ever can. Which means I
often find winners that otherwise would have fallen by the wayside.

This explains why I was able to wrack up gains of 197% in 2008, 141%
in 2009, and 55% in 2010. Can you do as well? Obviously, I can‟t
answer that. It all depends on the time you put in and how carefully you
follow my formula. But if you‟re willing to put in the hours and do the
analysis, I‟m willing to bet you‟ll do better than 99 out of 100 penny
stock investors who buy based on hunches and hot tips, or repeatedly fall
for some promoted penny stock.

But let me remind you that in the next few days, I‟ll be introducing you to
my new service that will do all of this hard work for you. With my new
Penny Stock Millionaire Program, you won‟t have to worry about
slogging through message boards, studying charts, or digging into a
company‟s SEC filings.

Call me a psycho, some people do, but I love doing that stuff, and I
regularly miss out on social events, favorite TV shows and vacations in
pursuit of the lateest, greatest penny stock. Ask any of my friends, and
they‟ll confirm how selfish I am with my time.

So if you‟d rather I did all the research for you so you can spend your
time doing whatever it is that you love, then my new Penny Stock
Millionaire Program might just be for you. I‟ll have all the details about
the program for you in just a few days, so watch for that announcement.

In the meantime, as you may recall, I promised earlier in this video to
give away three free memberships in the Penny Stock Millionaire
Program, and winning one is pretty easy. All you have to do is ask me a
question or make a comment on the blog below. I‟ll read every comment

Transcribed by: mfjdeguzman@gmail.com                               Page 14 of 15
Wealth Insider Alliance
Proven Secrets for Picking the Penny Stocks That Make You Win


and every question, and the three most insightful will win a free
membership in Penny Stock Millionaire.

By the way, I‟ll also be answering as many questions as possible on an
upcoming video. I want all these to be as clear as possible, and I don‟t
want to leave you hanging on anything. So, please, if you have question,
if I haven‟t been clear about something, fire away with your questions,
and I promise to answer as many of them as possible.

In closing, let me thank you for watching and remind you to download
the free resource file link below, and be sure to watch your inbox so
you‟ll know when I post the Q&A video and the video that describes my
new Penny Stock Millionaire Program.

Until then, have a great rest of the week.

[End of Video]




Transcribed by: mfjdeguzman@gmail.com                           Page 15 of 15

								
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