Fact or Fiction: 9 Pennystock myths exposed

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• Hi, My name is Aaron and Im with Penny Stock
  Research, today were reviewing our recently
  published article

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Fact or Fiction 9 Pennystock myths exposed
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Pennystock Myths BUSTED!
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There are millions of searches for Pennystock
everyday on Google. Some results are stories
about average people who finding success trading
penny stocks. Other results are heated and
passionate rants about why penny stocks dont
work.
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Unfortunately both groups of results are full of
bad myths and misconceptions. Today I want to
take a look at some of the most common pennystock
myths and set the record straight. So, lets
jump right in
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Myth 1 A Pennystocks Low Price Means There Is
Low Potential.
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Critics of pennystock traders like to suggest
pennystocks trade at such low prices, they offer
very little upside. Nothing could be further from
the truth. The low price nature of some select
pennystocks means they are often open to high
growth.
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While a typical Wall Street stock may see gains
of 6, 7, or 8 over the course of a year or
more Some pennystocks can experience
double-digit gains in a matter of days. Just look
at Oncothyreon ONTY.
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The Company name might be impossible to say but
the stock results will leave you
speechless. This tiny biotech pennystock
announced positive data for a breast cancer drug.
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The stock jumped on the news form a 1.49 price
to a high of 4.69 thats a gain of over 214 in
less than 12 days! Clearly pennystocks have the
potential for explosive gains.
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Myth 2 Pennystock Companies Arent Real
Businesses.
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If you want to debunk this common pennystock
myth, just look at Pier 1 Imports PIR, Monster
Beverage MNST, and American Axle AXL. At one
point each and every one of these businesses was
a pennystock.
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Companies find themselves trading for pennies a
share for any number of reasons. The overall
market, a bad quarter, a broken customer contract.
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Just because a stock trades for pennies doesnt
make it a bad company You just need to find a
way to separate the good from the BAD!
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Myth 3 Every Pennystock Is A Pump And Dump
Scheme.
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Look, lets be honest here Pennystocks are
definitely a target of pump and dump scammers.
There are thousands and thousands of pennystocks
but only a handful of pump dump scams in the
market.
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The key here is being able to spot these schemes
and side step them. Want a leg up on the
competition? Start by reviewing our Pump Dumps
Exposed research paper
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which you can download for free on our
site. Study itand share it with your friends
and you can avoid this Myth forever!
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Myth 4 Pennystocks Are Exponentially Riskier
Than Blue-Chip Stocks.
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Ahhh, risk the age old issue The truth is,
theres risk in any investment. Remember Enron?
Many thought that was a blue chip what about GM?
Remember they went bankrupt or Lehman Brothers.

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Another white shoe firm, gone. Granted penny
stocks are risky but theres still a chance to
lose money with blue-chip stocks selling above
100!
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To avoid being a victim of risk, make sure you
educate yourself on the best ways to trade penny
stocks, how to avoid Pump Dump Scams (you did
download that free report right), and make a
habit of monitoring your investments.
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Myth 5 Pennystock Trading Is A Guessing Game.
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This is a favorite myth of the ignorant. When it
comes to trading pennystocks, success and failure
is only found through hard work, research, and
using your brains.
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Its far from a casino or a flip of the coin.
There is as much skill (maybe more) involved in
trading a pennystock as there is in investing in
large-cap stocks.
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Youve got to have the skill of conducting solid
research and separating the fluff from the truth.
Theres no guessing. Pennystocks are not
lottery tickets. Only to the uneducated are
pennystocks a guessing game.
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Myth 6 Shorting Is The Only Way To Make Money
With Pennystocks.
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Personally this is a Myth I think was started by
successful pennystock traders to scare away
noobs. You know new traders. Trading is hard
enough
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tossing on the idea of going short adds a level
of complexity most traders dont want to think
about. And thats great news for the
experienced pennystock trader.
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There are many pennystocks set to plummet, plenty
have bright futures too. You can make money
going long penny stocks just as you can make
money shorting them. Either way takes education,
knowledge, skill and experience.
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Myth 7 Experienced Wall Street Investors Cant
Apply The Same Tactics.
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Once again, a rumor to keep out
competition Trading pennystocks is a different
game than investing in blue chip stocks. Unlike
Warren buffett, who buys and holds forever, the
pennystock investor must monitor their trades day
in and out.
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That said, many strategies, like buying value,
watching for momentum, and other big stock
strategies will work well with pennystocks
too. The strategy is the same just different
stocks and stock prices
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Myth 8 The Experts Have All The Answers.
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I hate this Myth Nope the experts dont have
all the answers never have and never will. Ive
been trading for over 20 years now and I still
learn new things every day.
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That said, experts can teach you a thing or two.
Im convinced if I could go back in time and look
over JP Morgans shoulder for a few days Id
learn more than in the last 5 years of trading.
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Never underestimate the power of a mentor, a
teacher, or a friend. Man is only a failure when
he fails to ask for help in his time of need! No
expert has all the answers but they do have some
answers and youd be wise to pay attention!
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Myth 9 Trading Pennystocks Is Easy.
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This one is true trading a pennystock is so
easy, anyone can do it. If you believe
that All I gotta say is are you CRAZY?
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Trading a pennystock any pennystock isnt easy.
Youve got to work at it do your research and
study like theres no tomorrow.
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Anyone who thinks pennystock traders roll out of
bed, work in their pajamas, and finish the work
day 20 minutes later are just plain wrong.
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True professionals spend hours and hours every
day studying the markets looking for indicators,
and researching stocks. The time and dedication
can-not be underestimated. So there you go. 9
great stock myths debunked!
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If you have a myth that youd like to know about
or want my take on, shoot me an email, or leave
me a comment on the website. I look forward to
hearing from you. Good investing.
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