Long Live Penny Stocks

The markets are broken which is why penny stocks have become so inviting to traders. What has to be done to fix the markets in general likely will not get done. That’s because the JP Morgan’s and Goldman Sachs’ that are capable of fixing the markets are actually prisoners t the powerful people who like them the way they are.

And that’s bad news?

People are being drawn more and more to small cap stocks simply because they want a better rate of return than they can get from the “big boyz club.”

Example A:

Stock A open for trade with a price per share of $25.00. At the end of the day, Stock A closes with a price per share of $25.10 for a 0.4% gain.

Example B:

Stock B opens for trade with a price per share of $0.10. At the end of the day, Stock B closes with a price per share of $0.20 for a 100% gain. The same 10 cent gain in price per share but an extra 99.6% gain on your investment!

The good news is, if you understand what’s wrong and who’s responsible, you can actually make a lot of money playing the game the way it’s been set up.

There is no great conspiracy to screw the public. (Not this time.) Instead, incremental changes in various corners of the capital markets manifested innumerable unintended consequences. The net result is this:

The stock markets aren’t functioning for the greater good of the economy and the nation. And the public is getting screwed. But you knew that.

The markets have become a kind of stacked deck in a rigged card game. A game being played by a bunch of whispering pros against mostly deaf, dumb, and blind amateurs (yeah, I’m taking about too many people you know) in a shady casino overseen by pit bosses who work for the house – which is owned by the pros who set up the game in the first place.

I’m not going to break down what the incremental changes were that got us here. I’ve done that over innumerable articles I’ve written for Money MorningForbes, Wall Street Journal’sMarketWatch, and right here.

This isn’t about how we got here. This is about proving where we are now by means of a kind of grand supposition that hopefully is going to open your eyes. And probably is going to scare the you-know-what out of you.

Earlier I said the public is getting screwed, but you knew that. How do I know that you know the public is getting screwed? Most people are out of the market. They are either on the sidelines or out of the game for good. They know the markets are a casino, and most people have come to realize that they have no idea what the game is, let alone how to play it.

And that, children, is the unhappy ending. Precisely because the public is so leery of losing their shirts and knickers in the strip poker club, investing is a thing of the past.

Long-term investing is dead. Long live short-term trading.


***Reminder: never chase stocks that gap at the open and always protect your profits!

Good luck in making the Best Penny Stock picks.

2012 – Become a Millionaire!!


Want to Discover the “Next” Blue Chip while it is still under $1 and turn $1,000 into $50,000 or more!?

Subscribe to Aim High Profits Penny Stock Alerts Today. You will have unlimited free access to penny stock picks which will help guide you to some of the biggest and most profitable trading alerts and techniques proven to bring in the “big bucks“.

Visit AimHighProfits.com to find out more about Good Penny Stocks to Watch and the Best Penny Stocks to Buy in the Stock Market Today.

For a review on the penny stock of Rarus Technologies Inc., click RARS stock to get details from behind the curtain.

AimHighProfits’ due diligence will help to stay away from all the scams out there these days or at least help you to understand the risks involved with them!


Got Something to Say or Add......

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s