Frequently Asked Questions (FAQs)

Why don't you charge for your penny stock ALERTs?
Simply we don't need the money or want the money. We already do the work for ourselves so that we can put food on the table for our own team.  We don't mind sharing the fruits of our labor and tell you about the penny stocks we are trading.

All we ask is that you Try & Buy a few games (Fun & Games) to help support the maintenance of this site.  A portion of the proceeds that we collect from the "Fun & Games" sales will go to charity...(Muscular Dystrophy Association Mattie Fund www.mdausa.org). 

Are penny stocks risky?
Penny stocks are riskier than the average investment. In the past, penny stocks were tarnished because there was little information about these smaller companies...new regulations and the internet have changed this. We look at profitable penny stock companies and penny stocks that have a strong track record to minimize the risk.

Can I use common trailing stop tools with penny stocks??
Yes you can. In fact this wonderful trailing stop tool from Tradestops.com has been proven to act as a reliable stop-loss alert system for penny stocks for many years.

If penny stocks are risky...why trade them?
Penny stocks have huge payoffs in short time frames, and they require little investment capital.  We've seen stocks that move from $1.52 to $31 in two months (Immunomedics: IMMU).

How do you pick the penny stocks?
We look at several key aspects of the penny stocks: Balance sheet and income statements...does it show profitability?, Analyst ratings...do analysts follow it?, Company story...is it well run?, Technicals...do the moving averages show an opportunity?

How much do you invest in penny stocks?
First let us say that penny stocks should only be part of a large portfolio. We invest no more than 10% of our trading capital in penny stocks. We try to use good judgment as to how penny stocks should play a part in our overall portfolio.  If you are trading penny stocks please consult your financial advisor to determine what role penny stocks should play in your portfolio.

When do you buy and sell penny stocks?
We aren't emotional with penny stocks and have a clear enter/exit strategy.  We use limit orders and stop losses to trade penny stocks.  If our profit target is 15% and we reach it...we sell.  If our loss limit is 5% and the penny stocks reach the loss limit...we sell.  We don' t hold on to penny stocks...hoping. We pre-define what our enter/exit strategies are and execute them without emotion.

Why don't you look at Over The Counter Bulletin Board or Pink Sheets?
We do look at these...and we stay away from them. In our opinion, these penny stocks have very little liquidity and are often targets for pump-n-dumpers.

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We find that penny stocks are fun, and they are a living breathing entity which we treat with respect.  We don't push the penny stocks too hard; we take what they give us and move on either with good or bad returns.  We find the key to success to penny stocks is trading with money management, stop losses, and sticking to entry and exit strategies.

Good luck and happy trading with penny stocks.  Be sure to join the e-Flyer email ALERT to get the ALERT one day before we feature the ALERT on our site!

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