Have you ever wanted to make big money trading stocks? Have you ever dreamed of swooping in and picking up a stock for only a few pennies… then watch it explode in value? Do you dream of becoming a millionaire almost overnight?
Of course you do.
Everyone dreams about big financial gains. That’s what keeps state lotteries running despite their horrible odds!
You can become a successful investor… and give yourself the opportunity to hit a few home runs on your stock investments. But there’s a catch. A problem actually. See, most investors don’t have the time or the gumption to study the markets.
They don’t want to make the effort to uncover the ONE are of the market where you can turn a few hundred dollars into thousands… or hundreds of thousands… almost overnight.
Big gains can be had… you just need to know where to look.
After years of studying and working in the financial markets, I learned some invaluable lessons. One of those lessons I’m going to share with you today.
Now before I share a very valuable secret with you, let me start by saying this…
Your stock broker is out to screw you.
Seriously.
His goals do not align with yours… they never have, and they never will. Look, your stock broker works for a living. He sells people things. You are a customer… he’s not your advisor. He (or she) may be a nice guy. You might enjoy their company.
But at the end of the day, he only cares about you, IF you can buy something from him.
If you get that simple notion in your head, you’ll be light years ahead of all the other investors trying to find their way in the market.
So let’s get down to business…
One of the most important realizations you can make is the old way of investing on “Wall Street” is dead. The old school way of making money is gone forever. This is a huge secret you must learn now!
What strategy am I talking about?
“Buy and Hold”
It used to be, when you invested your money in “Wall Street” you’d buy a stock or two with the idea of holding them forever. Hence the adage – “Buy and Hold.” You invested for the long run. It was easy.
If you bought the right stock your account grew in value. The advice was simple… Keep holding for bigger gains down the road… you’re making money.
And if your investment value fell? Advisors would say… “Well, just hold tight! After all, you’re investing for the long haul – RIGHT!?!”
You were told, Buy and Hold was the gateway to wealth and prosperity. Buy and Hold was the way to a safe and prosperous retirement. Buy and Hold was the ONLY way to invest.
I’m here to destroy that kind of stagnant thinking.
Buy and hold is DEAD!
If you need proof, look no further than the Dot-Com crash of 2000. How many people bought near the peak and are still sitting on huge losses? How many people still own former high flying tech stocks… stocks that over a decade later are nowhere near their all-time high levels?
Want more proof?
Just look at the last decade in the stock market.
Chart courtesy of StockCharts.com
At the start of the millennium… January 3, 2000 to be exact, the Dow was trading at 11,357. Today, more than 10 years later, the Dow is trading around 12,200!
The returns were so bad, one group started calling this decade “The Big ZERO!”
You don’t need me to do the math. Gains of this size are pathetic. You’d have been better off investing in a bank CD or government bonds. Why risk your money for returns measured in fractions of a percent? It just doesn’t make sense. It doesn’t hold true anymore.
Buy and hold is dead as a doornail.
I realize this is blasphemy to many. And for others, it will serve as a big wake-up call.
I’m here to tell you that investing for the long term is “OK”. But you’re not supposed to blindly hold onto any and every investment you make.
No longer should you stand idly by as your investments fall in value. No more watching your trades fall 20%, 30%, 40%, or MORE. No more standing by doing nothing. You must take action.
No more hanging on and not managing your portfolio. The best way to cure yourself of these stagnant ways of thinking is to play a more active role in your investments. Look at them. Watch them. When you have a big win, don’t be afraid to pull a little off the table. There is nothing wrong with the idea of investing with house money!
And if a trade goes against you… get it out of your portfolio.
Never again should you buy a stock (or any investment) and hold regardless of movement, valuation, or price.
This simple lesson alone can differentiate you from the herd of sheep that blindly follow the advice of their brokers. You don’t want to blindly hold stocks forever. Don’t ride stock after stock into the ground and wonder where your life savings went.
Now you realize just how important it is to actively manage your own portfolio.
With that as a starting point, I want to share with you the best way to make big money in the stock market! It’s not a secret trade or a source of insider information. Nope. One of the ways I like to invest… and make big money is with small cap stocks.
Specifically penny stocks.
Now before you roll your eyes at me, consider this. The value of a small company is more likely to double than the value of a mega-capitalization market giant!
Just look at Exxon Mobile (XOM). You know this company… everyone knows this company. They own giant oilfields throughout the world and make their money selling petroleum products. Right now they have a market value of around $400 billion dollars.
They’re a huge company. And their stock trades for $80 a share.
Consider this… for their stock to simply double. To go from $80 to $160 a share, their market value would approach $800 billion. At $800 billion Exxon would rank number 16 on a list of countries according to GDP.
Exxon would be bigger on a GDP basis than the Netherlands, Turkey, Indonesia, and even Switzerland.
The idea of Exxon quadrupling in value is mindboggling. They would break into the top 10 list leapfrogging countries like Canada, India, and Russia!
Imagine one company, and only one company, exceeding the GDP of these entire countries. Is it impossible? No. It’s not likely to happen any time soon.
Now consider a much smaller player.
Take a look at a company called Hansen Natural Corp. (HANS). This company wasn’t a household name back in 2000. And it’s not really a household name today… unless you like their products.
The company produces several lines of natural sodas, fruit juices, and energy drinks. Nothing shocking here.
Back at the start of the decade, HANS had a market cap of $40 million and the share price was a mere $0.54 split adjusted. You could have bought a share for around the price of a soda.
Over the next decade the company grew like a weed.
Just look at their chart.
Chart courtesy of StockCharts.com
The stock skyrocketed from just $0.54 to over $56 a share, where it stands today. A little back of the envelope math and you can see it’s a return of more than 10,270% during the “lost decade”. This company value jumped from a mere $40 million to over $5.0 billion today!
Just imagine if you’d have invested a small $1,000 in Hansen Natural stock. You would now be sitting on more than 1,851 shares… worth more than $103,703!
Do you see the power of investing in penny stocks?
Just a few hundred dollars can turn into thousands when invested in the right companies! Take a few minutes and look around. You’ll find this isn’t the only example. I could go on for days with example after example of big penny stock winners.
Oh! And just so you don’t think I’m trying to steer you wrong, Exxon started trading January 3, 2000 with an adjusted stock price of $30.51… today it’s worth just over $82. I guess turning that same $1,000 into $2,687 isn’t too bad…
Remember, if you’re looking to make big money in the stock market, you need to look where the big money has always been made…. Penny Stocks.