guru_trader
485 posts
msg #54240
- Ignore guru_trader |
8/20/2007 10:21:49 PM
I found this in my email box today ...
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" 700% Profits Within 6 Weeks!"
If you have spent time on the internet looking for information on stock trading, you have seen these kind of headlines all too often. Sometimes they even come in the mail with something like 'Get Rich during the Next Technological Revolution!' with strong recommendations to buy certain stocks.
Whether online or in print, they all promote one thing - penny stocks. Companies with no real earnings, sales or much hope when faced with the challenges of competition and a changing world. Just last week I received an advertisement for BHLL and how it was going to skyrocket from $9 to $30. Well last time I checked, the price went down to around $5.
Or looking at some old mail lying around, I see XNWK was supposed to be the next Microsoft in a booming internet telephony industry. Since I received that mail, the stock has dropped 30%!
The truth is that very few small company stocks go up 200, 500 or 700% in a year. Some gurus claim to be very good at picking the companies that will, but I've yet to see this on a consistent basis. If you look at their track records, you'll find that most of their picks do not fare real well and its the few that do that keep their performance numbers reasonable!
The world's a competitive place and very few companies will really make it big in the long run. Some won't make it at all.
That's why I believe its smart to only buy small company stocks while they are outperforming. Very few will double or triple in price, but I have found that most will go up 5-30% within a few weeks if they are the right stock at the right time.
Keep in mind, if you can consistently achieve this kind of performance, its far better than a '2-bagger' or '3-bagger' in a year. 10% on 1 trade a month is over 300% per year if you re-invest your profits!
And think about this. In a years time, you spread the risk over a lot of stocks instead of just a few.
Its been proven that buying quality stocks with great earnings performance is your best bet. That's why I always insist on the following before buying a small cap stock:
1) Earnings performance in the top 2% of all companies. The company has to be consistently making more money than was expected!
2) Increasing forward earnings estimates from analysts that have good track records.
3) A stock chart showing the stock price is in a long-term uptrend or at least moving sideways in a wide enough channel.
There's always companies that have great earnings fundamentals and whose share prices are just starting to rally. And you can find these stocks right now using FREE websites on the internet! You don't need expensive charting services, a PHD or go to work on Wall Street.
You just need our simple yet powerful 5-step system to find these little gems. In our PowerInvesting ebook we tell you where to find these stocks, when to buy and when to sell. All the information you need to put you on the fast track to real profits in the stock market. The same system we use for our popular Weekly Alert service. Its worth every penny if you haven't ordered it already.
www.tradetobefree.com/100.html
Best Regards,
Brian C Neall
Founder - Tradetobefree.com
PS - You can try our system risk-free. Practice trade using our techniques for 60 days. If you don't see consistent gains of 5-30% with occasional losses, we will refund your purchase price of the book.
Disclaimer: Stock trading and investing involves risk of loss to investment capital and past performance is not a guarantee of future results. Tradetobefree.com, its founder and members of its organization are not a financial advisor or broker and we can not offer you financial advice based on your personal financial situation or goals. We have not and will not accept payment to promote particular stocks. None of the information contained in the Weekly Alert, website or other materials constitutes a recommendation to buy or sell a particular security. Tradetobefree.com, its founder and members of its organization will not be held liable for any investment losses you may incur by trading the stocks mentioned in the Weekly Alert or other Tradetobefree.com's publications. The content here is presented as an informational aide to your investment research and all investment decisions are solely the responsibility of the reader. The Weekly Alert, Tradetobefree.com website, PowerInvesting book and all other materials produced by Tradetobefree.com are copyrighted material and re-distribution of the Weekly Alert and other products is strictly prohibited. The information contained in the Weekly Alert, Tradetobefree.com website and other materials offered by Tradetobefree.com is believed to be accurate, however, we make no warranties or guarantees to its accuracy.
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