Do you know the first rule about stock trading? If you’ve watched The Wolf of Wall Street, you’d have an idea.
Don’t buy a penny stock.
It’s that simple. These are the stocks priced at less than $5 a share and often their price is less than a dollar. And that means the price can be manipulated quickly and effectively through sheer hype.
So when I saw the offer from Penny Stock Egghead (“$1,000 becomes $5.7 million”), I wasn’t too thrilled. But I sighed and signed up, so I can write about my experience.
Features of Penny Stock Egghead
Fortunately for me, the price is actually more than reasonable. It’s just $97 for a lifetime subscription. At the very least, it’s a reasonable price to pay to warn off my readers, and it’s also a cheap warning for me about never dealing in penny stocks ever again. But there’s also an 8-week test drive period, which is nice. Within that period, if I’m not satisfied I can get a refund.
So after signing up, what I got was a tip for a penny stock once a week. Part of the purchase is a downloadable guide on how to trade these stocks.
And that’s all there is to Penny Stock Egghead. You get tips, and you’re supposed to act on them.
When you think about it, Penny Stock Egghead is a cheap proposition. At the very least, you can get a tip every week. You can then investigate the hell out of it yourself, or you can just invest a modest sum. For the most part though, the tips from Penny Stock Egghead are right on the money. Part of the reason for that, I suppose, is that the increase in demand from the stock from his subscribers are boosting up the price. Now Penny Stock Egghead may claim that he did his analysis honestly, and I have no evidence to suggest otherwise. But I’ve been in the business too long. So what I did is to make sure that I profited handsomely—and quickly. It doesn’t pay to hang on too long to penny stocks. You get in and out quickly, like a Navy SEAL team on an extraction mission. I got in the stocks, watched it rise to about 20% or 30% above the price I bought it, and then sold it while the stock was still in demand. And that’s the reason why, despite everything else, this review is actually positive. It does identify penny stocks that will eventually increase in value. The trick is to control your greed and to avoid all those dreams of making a millions bucks. To profit, you need to get out of the trade quickly, and that’s why Penny Stock Egghead is actually a viable proposition. The rule about trading in penny stocks still holds true in my view, but every now and then I make an exception. I’ve already made back the $97 I spent, but there has to be better options elsewhere, don’t you think?
