Buying Penny Stocks Training Guides

Buying penny stocks are a great way to invest money because they offer the opportunity to make massive amounts of profit in the shortest possible time. However for trading in penny stocks is extremely risky if you don't know the ins and outs.

No one in their right mind should attempt to trade in penny stocks without getting themselves extremely well versed in the ins and outs, having all the information and learning every trick they can pick up. Thankfully there are several training manuals that will help you to start buying penny stocks and trading with them successfully.

Some are better than others so to help you out here are the best choices available that will provide you with enough information and tips and tricks to start making money with penny stocks.

Top Pick
Day Trade Penny Stocks

If you are a beginner to penny stocks, and the odds are that you are, then Day Trade Penny Stocks is the ultimate resource and training manual for you. The guide shows you how to do your research, how you know which stocks to buy and when to buy and sell plus much more besides but more importantly it is given to you in an easy to follow step by step method. The book cost just $24.95 and is worth every penny .
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Next Best
Penny Stock Secrets Revealed

This guide is exactly as at says, a book revealing the secret methods to succeeding with penny stocks. Penny Stocks Secrets Revealed isn't a fantastic step by step guide like the Day Trade Penny Stocks book but it is a fantastic aid to have by your side. The guide shows many short cuts and methods which make trading easier such as using certain keywords in search engines and how to find out financial information about companies even if they do not have a financial statement. The book is also $24.95 and comes highly recommended although for a complete beginner I would suggest it more as a companion to my top pick as opposed to a stand alone product.
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Worth A Look
The Penny Stocks Kit

This book is a great source for general information about penny stocks, from the risks involved to strategies you can use to get the best prices possible. The information is of a very high quality but because it isn't a step by step guide it can be a little harder to take all the information in, although once you have you will realize what great information the book contains. The book is $5 more than my top two recommendations but you do get a free bonus package thrown in containing several books about stock market trading.
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All three of the books above contain great information that will prove invaluable in helping you to make money form buying penny stocks and steering you clear of bad buys but because of the way Day Trade Penny Stocks written, in a clear step by step method, it has to be my recommendation.

When Buying Penny Stocks Beware Of Fraud

Although when done correctly buying penny stocks can be extremely profitable it is also a mine field of fraud that you must be very careful to avoid. The most popular method is the method known as the pump and dump.

The pump and dump works like this. A website will make posts and press releases detailing something positive such as a new product or great financial health. They will also send out newsletters claiming to be from unconnected sources and post messages in forums and chat rooms and all of them will urge you to buy stock before the price skyrockets. You may also hear it mentioned on the radio and even television.

The unsuspecting investors then pile in sending the price of the stock up, this is the pump part of the fraud. Now comes the dump because as soon as the people behind the fraud see that the stock has reached its peak they sell their stock and then dump the campaign, in other words they no longer hype up the stock and therefore the price drops and all those who invested end up losing their money.

The reason this is done with penny stock companies is because it is an easy market to manipulate thanks to the lack of details contained about companies that trade this way. There are several other ways in which this scam can be worked but all are based on pumping up the price and then dumping once the stock reaches its peak. It is also reported that up to 15% of spam emails are based around recommending penny stocks.

Legitimate companies do exist on the OTC market and there is certainly money to be made buying penny stocks but because of the massive amount of fraud that is there you should never try your hand at penny stocks without first receiving training.

Buying Penny Stocks - What Are They

If you are looking into buying penny stocks you are probably still a little confused as to what they are exactly. This confusion however is not easily solved for the simple reason that there is no set definition as to what they are.

Some define penny stocks as stock that is priced at lower than $1, others at anything under $5. Also some include the entire over the counter market ( OTC ) whereas others only stock traded on the pink sheets.

If we go by the Securities division penny stocks are stocks that trade on the pink sheets or on the NASDAQ and are lower than $5. Penny Stocks will also only trade in the OTC markets and not on the stock market.

New investors find penny stocks appealing because of the low price and potential for rapid growth which may be as high as several hundred percent in a few days. However it should also be noted that severe losses can also occur and for this reason penny stocks are listed as an high risks investment by the SEC.

Anyone looking into buying penny stocks should therefore obtain training before risking any actual money as with the right training the risks involved are lowered dramatically.