Can people really become rich trading penny stocks? The answer is, sure...
why not? You ever hear the old saying "buy low and sell high"? Well...
can it get much lower than penny stocks? Honestly stock traders become rich by taking calculated risks.
And honestly, do you really think you are going to become rich trading established companies like Microsoft, eBay, or Wal-Mart? The real beauty of getting involved with these cheap stocks is that their returns are a lot more volatile.
There are certain days where you can find a penny stock go up as much 500% in one single day.
I don't think you are ever going to find a blue chip stock that is going to be able to pull that off.
Obviously there is less risk involved in trading blue chip stocks, but risk is just a part of trading.
If you can't handle losing money in a trade, then you shouldn't be trading in the first place.
But the tough part is how do you go about picking which small cap stocks that you should be trading? There are several ways to go about doing this.
You can spend a boat load of time researching one stock after another.
Check out all the fundamental news, charts, that are associated with that particular company.
The other way, also the easier way, is to discover a system that will automatically scan the entire stock market, and find the most opportune time to enter and exit the market.
You use software that takes into account all the historical information and scans it to find patterns that have historically been profitable.