How To Invest Your Way Into Oblivion

Traditional investing advice could cause you to invest your way into oblivion or stated more succinctly into financial ruin. This is not to say there aren't many good and safe long-term investments, but they will rarely give you financial independence, while Penny Stocks can allow you to double, triple, or in some cases quadruple your investment.

A CD, or a mutual fund, while traditionally a safe investment, should the market turn against you, as it is doing now (in early 2009), it can quickly wipe out the meager gains you've experienced and make thoughts of retirement a fading dream.

We've all heard the term buy low sell high, and while this is a simple concept, the vast majority of investors do not follow it, rather hanging on to losing issues hoping for a miracle as their money vanishes into the wind.

That same is true with Penny stocks, you have the opportunity for substantial growth from the get-go, but at no time do we suggest hanging onto a losing issue. With penny stocks you'll need to get in when the time is right, knowing in advance your exit point, then place a stop loss slightly below the current value of your investment.

By doing this you will lock in your gains, eliminating the possibility of catastrophic loss. What sometimes makes investors fearful of penny stocks is they wonder how to pick one company over another; and since the offerings are extensive, it is often difficult to see the forest for the trees.

There are some who seem to constantly pick winners, while others never seem to profit, are the winners simply lucky or do they know something others do not? At no time do we suggest gambling with the stock market (save that for Las Vegas). When you buy a penny stock, you should know in advance if it has a good possibility for growth.

You may wonder if this is even possible without your own Wall Street crystal ball. Let me assure you it is possible, it's not magic, and no crystal ball is necessary, simply the right knowledge, which can be gained by subscribing to a quality penny stock newsletter.

The difference between a penny stocks and larger stocks discussed on financial news is a little thing called "stock promotion". Imagine you're a new company with a strategic idea, how do you make your company more appealing then another company? The answer... stock promotion.

Reputable stock promotion firms are paid a fee by the company in question for publicizing, (promoting) the offering. When this promotion is done by a leading stock promotion firm, this new penny stock has a very real possibility for success.

The investing technique for substantial profit with penny stocks is to immediately place a buy order, the instant you hear about the offering. If you wait till tomorrow or next week, it will probably be too late.

The question arises, how would you know about this new company? And the answer comes in one of two ways.

1. You would do your own research tracking which newsletters have the best track over (at least) six months, then following the advice of the ones with the best picks or...
2. You would be a member of a leading penny stock newsletter team that has extensive contacts with all the newsletters and knows which the big movers are.

The difficulty with method one is the sheer amount of time and diligence it takes to assemble its research and the fact you'd probably miss multiple opportunities while the research is assembled.

Does using method two assure you wealth? Of course not, no one can make that promise in good faith, and if someone does, take your money and run.

What a quality penny stock newsletter will do is cultivate contacts with industry leaders and quality stock promotion firms, allowing them the opportunity to present the offering to their newsletter membership, before the general public.

If the company is sound, (and it should be if promoted by a leading stock promotion firm) then the investor would move immediately knowing that by tomorrow the general public will likely hear about it.

The other thing that you can do to ensure success for the long term is to diversify. While no one will get rich with mutual funds or CDs, we are not advising they be eliminated from your market portfolio, just that penny stocks be one part of your investment strategy.