Seeking Penny Stock Picks – Finding Fun Stock

Sometimes when I get tired of trading I think of an easier way. Although I should know better that there is no magic formula for instant success (riches), I can’t help but surf the web for ideas. It is always good to keep an open mind and refresh it with different approaches and ideas.

I was thinking about penny stocks again, and why is there such an appeal. With the amount of information and offers on penny stocks, I would have to assume that there are a lot of fans. I prefer blue-chip stocks because of the notion of relative safety (eg, lower risk than speculative penny stocks). But I see the appeal of penny stocks realistically doubling down (for example, $2 stocks going to $4). I took a look at some recent penny stock picks and indeed, a doubling in price is definitely on the cards and the trick is to enter at the right time to take advantage of the momentum. But the charts also show the typical stock price drop after momentum doubling action. So it is very much a caution not to hold (long-term) trading opportunity. This may explain the endless chase for the next penny stock to catch the breakout. This would explain the reason for a continuous flow of recommendations that are offered for free or paid.

Okay, that was the not fun but serious part. Now for some fun stuff.

I found a service that offers penny stock picks. How does it work? They say they run artificial intelligence software developed over 3 years by a team of 15 day traders that costs $3,000,000. They go on to cite their main success story of 13,000% annual return, recommending a stock at $0.07 which rose to $9.60. Their pitch is just listening to their buy and sell recommendations that they put out about 3 times a month. With horrendous wins like that, you only have to trade $500 to make it $65,000.

Let’s say they have such a system. Why wouldn’t they use the system for themselves? With successes like that, they only have to hit the jackpot once and be done with, unless of course greed drives them to repeat 13,000% wins over and over again. Maybe they ran out of capital spending the $3,000,000 to develop the software.

Let’s say you have a system that can spot penny stock opportunities. Why brag so ridiculously to jeopardize credibility? Why brag so loud to dampen any chance of managing expectations?

I did not register. I will look for something more authentic and real. His tone doesn’t lead me to trust them. I prefer balance over extreme.

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