The Key to Making Money in Penny Stocks

Everyone knows that penny stocks are risky but somehow some people are able to still get rich off of them. Many people will tell you that penny stocks are a gamble, and they can be if you are randomly picking and choosing stocks to invest in. However, the key to making money in penny stocks, and increasing your chances of success is RESEARCH! Yes research is the best way to make some money. However, I'm not just talking about looking for trends and researching stocks that look promising. Everyone will tell you it important to research, but the majority of investors don't know how.

Sure there is the elite guys who are pro at researching, but these are the same people bringing in all the money. The 80/20 rule can be applied to penny stocks. This means that 20% of investors account for 80% of the profits. How are you going to get in that 20% and start making money in penny stocks? There are a few resources which are considered the most accurate way to pick stocks.

The first tool is penny stock newsletters. You would be surprised to learn how powerful these can be. Basically what newsletters are, are a report given to you that are packed full of extensive research. These newsletters are accurate and can make you a lot of money. If you do subscribe to a newsletter, I suggest doing some research on the stock picks that they provide you with. I'm not saying they won't make you money, this will just further increase your chances of making money.

The second tool is stock picking software. The tool can give you VERY accurate stock picks. By accurate, I'm talking successful stock picks 4/5 time. When it comes to penny stocks, if you are having more than a 50% success rate then you are doing awesome. If you want to start making money in penny stocks I suggest subscribing to a newsletter or getting your hands on some of that golden software.

By Josh Lewis