Trading Penny Stocks and OTC Stocks: Why Don’t You Invest?

Everyone knows about the stock market and many want to invest and make a million dollars, but rarely does anyone ever follow through with their desires. The stock market appears to be one big gigantic mathematical equation that requires a supercomputer to be able to decipher the numbers and what they mean to non-investors is what scares most from even trying to understand the concept. Which is precisely why many of the wealthiest investors of our time, and how the Nasdaq Exchange actually started, started to invest in penny stocks. So Why not start out small trading penny stocks and OTC stocks?

If you dream about making money or you make a goal to make money, trading penny stocks and OTC stocks is a great place to begin your stock market portfolio. We all have desires in life but can rarely put a finger on them which is why most people have dreams and wealthy people have goals. Goal driven people are much more likely to be able to determine all the methods which they can take action upon in order to reach their goal. Much like trading penny stocks and OTC stocks, penny stock alerts, penny stock newsletters, how to manuals and most importantly, very little startup capital is needed to begin a goal oriented approach to making a million dollars in the stock market.

Why Not:

It’s too complicated
I don’t have the time or the money
My pension fund was wiped out by the stock market
I invested once in the stock market before and lost money
Penny stocks are risky

All of the above are excuses made by the majority of non-investors which can all be construed as fear. The fear of failure overpowers the fear of success exponentially. But when you look at what it really is, fear is nothing more than false emotions appearing to be real. We were all once scared of the dark but learned that there was no boogey man. So why not take a small step in the right direction, the direction of self-sustained wealth, and start trading penny stocks and OTC stocks?

It’s amazing to know that the U.S. has two of the largest financial markets in the world but only 54% of American households own any form of stock investments according to a 2011 Gallup poll. That means that 46% of U.S. households have no form of stock investments. It’s no wonder the U.S. is the leading country when it comes to average household debt.

As part of the excuses list above, the #1 excuse is it’s due to a lack of wealth. Of the 46%, most claim they simply don’t have any money to invest but they can buy the latest tech gadgets and have take-out dinners and extravagant lunches. You would think that since a sizable number of even the wealthiest Americans don’t own stocks it would be understandable, but that’s because they buy guaranteed investments like Government and Municipal bonds which pay out tax-free interest.

Of U.S. households ranked in the top 33% in wealth, 34% of them admit that they did not own stocks directly or through mutual funds. Of those in the top 25% of U.S. households in wealth, 14% had no stock investments. Within the wealthiest 5% of U.S. households, 6% owned no stocks.

Those numbers are amazing considering how each and every household has the desire to live comfortably, have a healthy retirement and most importantly, be able to be independent of consumer debt that the top 33% in wealth trade stocks and the percentages increase as you climb higher up the wealth ladder.

Why trade penny stocks and OTC stocks?

More money to start your own business with
Fancy cars
Dream homes or vacations
Secure retirement
Pre-Paid college tuitions for the children

Two hundred years’ worth of data makes one very clear point: Over the long-term, stocks exponentially beats the returns made on bonds, cash, commodities, and real estate and with much less risk.

Adjusted for inflation, $1 invested in 1802 in:

stocks was worth $755,000 in 2006
bonds, turned into $1,083
gold grew to $1.95
cash depreciated to $0.06

Sure, no one’s going to live through another two hundred years to enjoy their money but stocks win over the long-term, and yet an enormous amount of Americans avoid them. Why, because Americans’ love for self-destructive financial behavior is never-ending.

Would you believe that half of workers over 59.5 years old, those eligible to withdraw money from a 401(k) plan right away, don’t contribute enough to retirement plans to take full advantage of employer matching. They are turning down free money that would have been theirs to spend immediately. 67% of those over 59.5 years old not participating in a retirement plan with employer matching said they would never sign up. It’s asinine when they could have pulled the money out the next day penalty-free.

The majority of people avoid stocks simply because they think they are going to get cheated. Well, they are half right. Stockbrokers have one goal, to earn a fee, a commission, financial advisors the same. But really it’s because of trust in the system. With the Enron and Bernie Madoff scandals to name a few, who could blame them for not having any trust.

But one thing that changed the views of many made its debut in 2000 on the silver screen, sold DVD’s in the millions, has played thousands of time on cable T.V and been downloaded across the planet which will push you in one direction or the other;

“I read this article a while back that said Microsoft employs more millionaire secretaries than any other company in the world. They took stock options over Christmas bonuses. It was a good move. I remember there was this picture, of one of the groundskeepers next to his Ferrari, Blew my mind.

You see shit like that, and it just plants seeds, makes you think it’s possible, even easy. And then you turn on the TV, and there’s just more of it. The $87 Million lottery winner, that kid actor that just made 20 million on his last movie, that internet stock that shot through the roof, you could have made millions if you had just gotten in early, and that’s exactly what I wanted to do: get in. I didn’t want to be an innovator any more, i just wanted to make the quick and easy buck, i just wanted in.

The Notorious B.I.G. said it best: “Either you’re slingin’ crack-rock, or you’ve got a wicked jump-shot.” Nobody wants to work for it anymore. There’s no honor in taking that after school job at Mickey Dee’s, honor’s in the dollar, kid. So I went the white boy way of slinging crack-rock: I became a stockbroker.”

Today is the Day:

So today is the day. Today is the day when you begin to start trading penny stocks and OTC stocks. Today is the day when the excuses go out the window and the path to financial freedom and independence begins. Today is the day when you learn how trading penny stocks and OTC stocks responsibly will lead you to a wealthier life, a healthy life.

You will make a million dollars in three years or less by trading penny stocks and OTC stocks. Let me repeat that; you will make a million dollars in three years by trading penny stocks and OTC stocks. There are some very simple rules to live by which, if followed, will lead you to that million dollar goal.

Learn What Are Penny Stocks and OTC Stocks:

Any professional investor will tell you that a penny stock is any stock which is trading at or under $5.00 a share. Bank of America (NYSE: BAC) came damn close to becoming a penny stock back in late 2011, Sirius Satellite Radio (NASDAQ: SIRI) and Sprint Communications (NYSE: S) are two of the largest traded penny stocks in the market daily.

OTC stocks are any stocks which are traded on what is called the Over-the-Counter Bulletin Boards which has stocks that have opted to trade there for a cheaper fee than listing on the NYSE or NASDAQ exchanges or simply doesn’t have the ability to trade over $1 consistently which regulates them to this exchange. AMR Corporation (OTCBB: AAMRQ), parent company of American Airlines, was removed from the NYSE in 2011 after their voluntary re-organization bankruptcy filing to the OTC and has gained over 100% since 2012 began.

Have a Reputable Online Broker Account:

eTrade and Scottrade are the most dependable online brokers to use for trading penny stocks and OTC stocks. They are market-makers which means they execute trades and do not pawn them off to other market makers to do so. You can open an account with either one of them for less than $1,000, sometimes they even have promotions where a deposit of $500 will get you 25 FREE trades. That is like them giving you $250 for FREE.

Other online brokers offer access to trading penny stocks and OTC stocks. Some have certain restrictions which will not allow access to pink sheet listed stocks and some have a slight delay in the execution of the trades.

Have Access:

To be successful at trading penny stocks and OTC stocks, you need both internet access and time. The first is obvious but when it comes to time, you do not need to crunch the numbers of 20,000 different stocks looking for the right one. Visit and bookmark the websites and also and get to know how to browse around those sites. Each has its benefits and each offers direct access to all OTC listed stocks.

Get The Information:

When most investors who have been successful at trading penny stocks and OTC stocks began, they had one source of information, the Wall Street Journal which was printed and delivered the day after a stock moved. Today, information is shared in real-time which allows for savvy traders to take advantage of each and every opportunity they target to make the best financial decision on.

Buying, Selling and Holding are all actionable based on not only what information is available, but also what momentum a stock is moving towards. Three of the most successful people trading penny stocks and OTC stocks have less than 12 stocks on their radar screen at any given time and look for certain triggers before taking any action.

Be Realistic:

Those stories about how trading penny stocks and OTC stocks is risky are actually true. Most of the stocks have short-term volatility which means that they are hot today and dead tomorrow kinda like parachute pants were back in the 80’s. Some stocks can gain 1,000% in a day whereas some stocks can also lose 99% in a day. Rarely do either of them occur but the first is the more important of the two because it exposes a novice investor to the worst disease you can have in the stock market; GREED.

Investors trading penny stocks and OTC stocks have set rules which allow them to maximize their profit and minimize their losses.

Learn How to Read a Stock Chart
Do Your Own research
Trade Responsibly
Move Fast or Get Left Behind
Do Not Use Market Orders to Enter a Position, Use Limit Orders
Have a System That Fits You
If a Stock Gaps Open, Look for Pullbacks to Enter
Plan a Trade and Trade a Plan
Always Use Stop Loss Orders to Protect Yourself
Positive Self-Belief
Keep Trading as Part of a Balanced life
If a Stock Breaks Below an Alert Price, GET OUT. Do Not Wait
View Trading as a Score in Points and Not In Money
Always Take Your Profits Whenever You Can. Don’t Be Greedy
Work Hard at Learning How to Trade Properly and Keep Working

Get Started:

Using these basic building blocks will help anyone trading penny stocks and OTC stocks to strengthen their trading skills and weaknesses to becoming a million dollar penny stock trader. If you have never traded before, create a portfolio on Yahoo or Google, whichever one you visit more to track stock prices. Once you’re ready to get started, subscribe to a few FREE stock alert sites like AimHighProfits and track a couple of recommendations you get to see how they perform. Pretty soon you will have your system that works for you designed and be ready to start taking advantage of those who are sitting on the sidelines not investing in stocks.

Beware of the Future:

Once you begin trading penny stocks and OTC stocks, you will start to develop a new sense of “investment chat” which not many people will understand. The guys who are all talking about Apple’s new iPad or iPhone and how the stock is going to $1,000 will have you biting your tongue because a 10 cent move to an Apple shareholder means nothing but a 10 cent move to you could be difference between hundreds and thousands to your net worth on a penny stock. So get ready to convert others to trading penny stocks and OTC stocks risk finding new friends.

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