3 Easy Steps to Becoming A Rock ‘n’ Roll Starâ€¦and Penny Stock Guru
By John Whitefoot for Peter Leeds, Inc.Â Â PeterLeeds.com’sÂ newsletter is the number one onlineÂ resource for penny stock investors.
NEW YORK, (RUSHPRNEWS) August 3, 2007 -I really wish I knew how to play the guitar. And by play, I mean more than three chords. Though, some of my favorite bands have lived quite well off of three chords. The point is, I donâ€™t think itâ€™s all that easy to pick up a guitar and just playâ€¦or at least play something someone else wants to hear.
Mind you, I was listening to the radio the other day and heard â€œSo You Wanna Be A Rock ‘N’ Roll Starâ€ by The Byrds. And according to them, there are in fact some simple steps you can take to find success.
Hereâ€™s what I learned. All you really need is an electric guitar, to take some time and learn how to play. Then just get an agent, and a week or two later, if you make the charts, â€œthe girlsâ€™ll tear you apartâ€.
The way they explain itâ€¦it seems quite easy.
I think the same can be said for being a penny stock guru. It certainly seems like there should be an easy 3-step process to uncovering terrific penny stocks. How difficult can it be to find a $0.25 penny stock that will hit $0.75 in a week or two?
Technically, I suppose, all you need to do is find a financial website with a stock filter and a bunch of empty fields. Enter in some basic informationâ€¦like P/E ratio, share price, shares outstanding, sales growthâ€¦maybe even toss in the quick ratio if you like.
Hit â€œenterâ€ andâ€¦voila!!! There you have it, your list of 50 penny stocks that you can retire on.
Sadly, itâ€™s not that easy. If it wereâ€¦everyone would be a rock â€˜nâ€™ roll star with a penny stock portfolio that Warren Buffet would envy.
Yes, there are some basic fundamentals that everyone likes to look at. We all want a penny stock that is profitable, with growing revenues, and a decent P/E ratio. It doesnâ€™t hurt if your penny stock has a good cash position too. But even with all of this information, you can still end up investing in a dud. And plenty of those abound.
If thereâ€™s one thing you cannot gleam overnight from reading every financial website, it’s experience. I know itâ€™s not very sexy sounding. But when it comes to penny stocks, experience teaches you that these investments march to their own drum.
What will help you find a solid mid and large-cap stock will not help you find a great penny stock. Because penny stocks are (generally) thinly traded and have smaller product offerings, it takes less to make their share price pop or drop.
For example, a penny stock with strong fundamentals could tumble because of one negative parameter. Say youâ€™re interested in a penny stock that gets 60% of its revenue from one large customer in Baghdad. For starters, itâ€™s easy to see that this company could suffer from any geo-political hiccupâ€¦and could tumble if their major customer takes their business elsewhere.
Sure their fundamentals look great on paperâ€¦but a little experience will tell you to dig deeper. The point is, it takes more than numbers to pick great penny stocks. Fortunately, there’s a way you can gain experience without risking a dime.
Paper trading allows you to keep track of imaginary money in real investments. The idea is to find out how you would have fared if you had really traded the stocks with real money. It also means you can start out with a $100,000 portfolioâ€¦and not risk a dime.
If you want to become a rock star, you have to learn how to play guitar. Unfortunately, you canâ€™t gain experience with an air guitar. If you want to become a penny stock guru, you need to learn the ropes. And paper trading is the perfect place to begin.
As North America’s leading expert on penny stocks, Peter Leeds is frequently contacted by top media organizations like the Associated Press, NBC, CBS, and CNNfn for his comments and views. He helps investors understand and benefit from penny stocks. For more information go to www.pennystocks.comTo contact Peter Leeds for an interview, please contact his publicist Anne Howard by phone at 310-295-9578, or email at email@example.comÂ www.peterleeds.comÂ www.annehowardpublicist.com