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http://residualincomelife.com/ Penny stocks do make money. The do require risk. There are ways to mitigate risk and set yourself up to win no matter what. Learn what penny stocks are, what it means to pump and dump and a sweet short cut to researching for the perfect investment opportunity instead of waiting for it to come to you.

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3. Penny Stocks: The Unforgiving Money Machine
-How to be bold without getting greedy. Machines are about timing and numbers not emotion or greed.
“Subscribe to quality stock newsletters. These newsletters pool together a number of expert facts about the best and hot penny stock picks, and other valuable information.”

We are now into week three, I would like to thank everyone who has subscribed to my penny stock course. Please feel feel to email me feedback. I want to make sure I am producing the best course possible to help people make money. This week are going to talk more about research, how the pigs get slaughtered, and how a stock new letter can be your best friends in implementing efficient use of your time.
First research, we have talked a little bit about some things you can do to find companies worth shorting. The first thing you need to do is get and account at Interactive Brokers. They have the largest borrowing pool for short selling, thus allowing the best chance to short Pump & Dumps. Second, Create a few scan systems in your interactive Brokers account. One showing large changes in volume in stocks under $5.00 per share and another showing large changes in price of a stock also under $5.00 per share. What you are looking for here are stocks that randomly have a huge increase in volume of the shares traded and in the price of the stock. Once you have those listed you can start trimming them down by first getting read of any Bio-chemical, medical, or otherwise chemical companies. You be thinking why there are tons of those companies. The reason why is because those companies are the highest risk for you to loss your shirt. All they need to do is get a level 3 patent which really means nothing, but will have there stock price up 500%. You don’t want to be holding it short when that happens. Thus, we don’t waste our time with those. Next, we pick 5-10 and go to the SEC website and look at there 10-K to see what there financials look like. Do the have revenue? Do they a ton of debt? Is there equity actually worth anything? Are the burning through cash on there statement of cash flows? Then don’t forget to read the Notes. This is were many companies will say. We can do this or that. Or we are growing product x in our yard. They have to be honest in their disclosures, but most people don’t read them. After all of that you will have a good idea of what stocks you should short. Then you need to look at the chart of the stock is it being Pumped as we previously discussed, if so, short it and wait for it to come crashing down and for your profit to roll in.

Speaking of profit, never be afraid to take profit off the table. If you think a stock will go down 60% and its down 20% in one day for a total gain of 40%. Take profit. I have my lesson the hard way a few times not taking profit and eventually losing it. I was a greedy pig and wanted a little bit more. Never feel bad about taking profit. You might be thinking, but when? That’s the tough part. With the Gravity news letter I use I get an email that tells me exactly when to short and when to buy back. Making my life and stress level much easier. If you are going to set profit targets yourself you really need to be good at understanding charts. And know when a stock has hit a near-term bottom.

Next, we will look at few charts and dissect how to set profit targets and how it is a most to take profit when it is there.

Duration : 0:4:38

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