Buying Penny Stocks The Easy Way

New technology dramatically simplifies the process of selecting penny stocks to invest in.

Buying penny stocks is potentially very profitable, but penny stock investing is also filled with risks. Thorough research and evaluation of stocks can greatly reduce the risk, but this process is tedious and requires a considerable investment of time and effort.

A new computerized system has finally been devised that uses cold, hard, mathematical analysis to greatly reduce the risks and increase the profitability of buying penny stocks, while eliminating most of the work involved. As you might have guessed, this technology comes at a rather steep price, but some creative minds have come up with a way to make it accessible to the small investor while making the process of buying penny stocks simple and easy for even the newest of penny stock traders.

There are some big advantages to penny stock investing. The small price of each stock allows even very small investors to have diversified portfolios. Due to the fact that even a small dollar amount change in the price of the stock can have a major percentage change, it is possible to get much larger returns with penny stocks than with higher value stocks, and such returns can be made with small intial investments.

For example, if you had $1000.00 to invest, and put it into some stock on the S&P 500 list at a purchase price of $100.00 per share, and it went up by $1.00 per share, your $1000 investment would yield $10.00. But, if you purchased $1000.00 worth of a penny stock at a purchase price of $1.00 and it went up by $1.00 per share to $2.00, your $1000 just became $2000 – a yield of $1000!

Now, by the same token, penny stocks can lose a bunch of money very quickly too, which is one reason why it is important to be very careful when buying penny stocks. Another reason that penny stock investing is risky is because of shady or outright fraudulent practices of some individuals involved in marketing and selling penny stocks. Because companies that issue penny stocks are not required to file financial reports with the SEC, it can be difficult to obtain reliable information to really assess the stock.

Various unscrupulous tactics may be used to lure unsuspecting investors into buying penny stocks as a ploy to drive up the stock price and then insiders may quickly sell of their stock at a high price. The sell-off drops the stock value sharply and the investors take a big loss. In investing, it is typical that investments with the highest potential returns will also have the highest risk, but in penny stock investing, the high rate of fraud increases the risk well beyond just what is produced by the natural tendencies of the market.

Until recently, buying penny stocks required a tremendous amount of research and evaluation of stocks to avoid scams and have a decent chance of getting a good return on investment. A prudent penny stock investor might need to spend hours of work just to evaluate one stock. Done right, this work would likely pay off, but the necessary time investment put the high profitability of penny stock investing out of the reach of casual part-time investors.

A couple of computer geniuses who also had an in-depth understanding of penny stock investing have recently developed "Marl", which is a computerized bot that can evaluate hundreds of penny stocks in less time than it would take a human to evaluate just one. Unlike human stock-pickers, Marl is 100% cold and calculating – there’s no emotion to cloud his judgement. Although even Marl doesn’t have a perfect track record, he’s a lot better than any human, and Marl can dramatically decrease the risks involved with penny stocks.

Marl has been so effective that he has allowed for huge gains by advanced investors. Because of this, Marl is considered a bargain at the $28,000 licensing fee, but bargain or not, this is well beyond the means of small investors. There is an option to use Marl that is available to investors with even the smallest of budgets though. The guys that developed Marl put out an e-newsletter that gives Marl’s top penny stock pick for each week. For new investors, this might be even better than buying the full Marl program, as it narrows down the investment options to just one stock every week, instead of figuring out what to buy out of hundreds of options. With this, even the most novice of penny stock traders can do well with penny stocks.

Marl’s inventors have stated that they will be limiting the number of newletter subscribers that they allow, and the subscription option may not be available much longer. For the sake of small investors, hopefully they will reconsider and keep the subscriptions list open. For now though, small investors have a big opportunity for assistance in profitably buying penny stocks.

George Best is a part-time investor from San Antonio, Texas. For more about Marl and penny stock investing, visit buying penny stocks. Click here to get your own unique version of this article.

Technorati Tags: buy penny stocks, buy stock on line, online stock investment

3 Responses to “Online Stock Investment – Buying Penny Stocks The Easy Way”