Weekend Sleuth: Playing Penny Stocks with the House's Money

The Penny Sleuth Features: Penny Stocks, Options and High-Growth Opportunities! Weekend Sleuth: Playing Penny Stocks with the House’s Money By Jonas Elmerraji November 13, 2010 Right now, I’m sitting by Gate C14 at Baltimore’s Thurgood Marshall Airport. Destination: Las Vegas. But I’m not going to gamble… I’m heading to the Traders Expo. It’s hard to completely avoid the parallels between gambling and penny stock investing, however. After all, penny stocks can be a high stakes game that appears to come down to luck. How else can you explain the 150% jackpot weeks that penny stocks are known for (or the big busts that can come just as quickly)? The fact is that for many penny stock investors, investing in a speculative stock is akin to placing $1,000 on red at the roulette table (albeit with worse odds). Most people just don’t do their research… But when you’re investing with your hard-earned money, you shouldn’t be taking a gamble. Risk is inherent in the investing world, especially for penny stocks, but when I’m involved in a gambling transaction, I’d rather be the casino. That’s because in the end, house odds win out every time. Sure, a player’s big win might hurt a casino’s profits in the short-term, but over time, they’ll get that money back and more. Luckily for us, the penny stock world is one market where regular investors can enjoy house odds regardless of whether you’re a long-term investor or a short-term trader — but only if you do your homework. That means sticking to your analysis and not succumbing to the emotional side of investing. When you trade penny stocks, don’t think like a gambler — instead, think like the house. While at the Traders Expo this coming week, I’ll be bringing you some insights into how to do just that. 6 Penny Stocks to Own Right Now… Penny Stock Fortunes is giving away SIX penny stock recommendations to all new subscribers! But you must hurry because these plays could explode at any time. Click here to watch the presentation now. A New Way of Predicting Price Movements and Chart Smarts… Last week the Penny Sleuth featured a look at a new way of predicting price movements, a tutorial on timing your sells using charts, and a whole lot more. Here’s a recap of last week’s investment insights… Profiting from Exciting Developments in the Internet Landscape — On Monday, Ray Blanco chimed in with a look at some incredible new Internet technology developments for investors… A New Way of Predicting Price Movements — Resident currency expert Abe Cofnas shared the new price prediction strategy he’s been developing, analyzing the Fed’s QE2 announcement as an example. “The Single Most Important Investments Decision of the Coming Decade” — On Wednesday, Chris Mayer talked about how to play commodities in this inflationary market. How You Can Make Money Off Market Reaction — Joining us on Thursday, Alan Knuckman discussed ways to profit from the current price levels in the grain and oil market. Chart Smarts: Know When to Sell Your Stocks — Yesterday Greg Guenthner joined in, explaining how to use charts to predict the movement of stocks. Comment or question about an article? Just click on any article’s title above and join the conversation by leaving a comment... We’ll be back on next week with more thrilling insights on the on today’s market climate… Until then, please send me any editorial comments or suggestions at editor@pennysleuth.com. Have a good weekend, Jonas Elmerraji Managing Editor, Penny Sleuth P.S.: For the past year, I’ve been quietly developing a new trading strategy that focuses on penny stock plays. In the last few months, I’ve been testing it out with a small group of beta-testers. Soon, I’m opening my research up to newcomers — expect to hear more about it later this month after I get back from Vegas. Until then, you can still get my premium penny stock research here… The Secret $200 Retirement Blueprint Investing in Penny Stocks What Is Technical Trading Follow the Penny Sleuth on Twitter, here. Become a Facebook Fan of The Penny Sleuth, here. The Penny Sleuth, a free e-letter, offers independent news and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to KNUMASSCN@gmail.com because you or someone using your e-mail address subscribed to this service. Are you having trouble receiving your Penny Sleuth? You can ensure its arrival in your mailbox by: Whitelisting Penny Sleuth. To end your Penny Sleuth e-mail subscription, click: Unsubscribe. The Penny Sleuth is your free and independent source for analysis, commentary and news on small cap stocks, options and high growth opportunities. 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