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Why Do People Trade Penny Stocks?

Do you know the number one reason people trade penny stocks? They have the potential for MASSIVE GAINS which does not exist anywhere else in the financial markets. Everyday within the penny stock market there are individual stocks that double and triple in share price, in some cases even more. Finding these hot penny stocks for our subscribers is what we do. No doubt there are risks involved with penny stocks as there are with any form of trading or investing. By learning to understand market dynamics and the nature of the penny stock market as we do, the possibility for greater rewards increase substantially. You may be new to the stock markets and have never heard of penny stocks or a seasoned investor with experience in the financial markets but have never looked into the possibility of penny stocks. The first question you may be asking yourself is why do penny stocks possess such explosive potential?

Penny Stocks and Their Explosive Power

Large cap stocks seldom have the ability to double or triple within a short period of time, if at all. Hot penny stocks can make 1000% increases in a couple of days or even one day! Why…? It is far much easier for a penny stock trading at five cents to double to ten cents than it is for a stock trading at $20 to increase it’s share price to $40. Thousands of penny stock traders and investors understand the MASSIVE GAINS that can be had by building a list of penny stocks that would otherwise not be obtainable by trading only large cap stocks.

Trading the penny stock market does have its risks and careful consideration should be given to your approach to this highly volatile market. Experienced penny stock traders understand the importance of sound money management and stick to their trading system. They don’t trade with “scared money” and neither should you.

Penny Stock Picks and Using Newsletters

Many traders utilize stock newsletters, like ours, to help them find penny stock picks to eliminate the hours of research they would otherwise have to do in order to find hot penny stocks on the move. We scan thousands of stocks looking for those which have the potential to become the next big winner for our subscribers. Most of our subscribers started out as new traders and investors with little experience in penny stocks, opened a trading account, funded it with a small amount, used common sense along with our guidance and have since become successful and profitable. YOU can too!

Get Free Email Alerts About Hot Penny Stocks!

Our hot penny stock newsletter is free when you sign up for our email alerts. Everyday we send out email alerts to our subscribers with hot penny stock picks from our professional staff. We look for stocks with the momentum to move to the next level and is the number one reason why momentum players love our email alerts. By signing up for our free email alerts, you too can ride the wave of momentum of hot penny stocks!


Mining stocks have several benefits over physical gold investments. Firstly, paper-backed gold doesn’t need to be insured or stored in bank vaults. Conversely, a mining company’s stocks increase significantly higher than prices of spot gold. If you’re interested in making an investment in paper gold, here are 3 mining stocks to consider in 2014:

Harmony Gold (NYSE: HMY)
Harmony Gold were one of the most sought-after companies dealing mining stocks during 2011, being traded at $15.33 per stock. However, it got hit really hard when the U.S. Fed stopped the QE2 bond buying program. But everything is in the past now, since its shares this year have finally evened out and are being expected to increase by 47% this August.

Goldcorp Inc. (NYSE: GG)
Goldcorp Inc. has exceeded the expectations of mining investors this year by doing a great job of controlling its expenditures and altering its mine plans in order to have a more profitable production line. Investors believe that the company’s gold production this year could increase by more than 40%, and even reduce its gold mining costs to around $40 – $80 per ounce. Investors of Goldcorp Inc. are now being offered at a 2.1% dividend, and its consensus price aim is at $29.37.

Yamana Gold (NYSE: AUY)
Yamana Gold is a mining company known for declaring its reserves in a very conservative manner. Its production costs were reduced by a few ounces in 2013, and its resources continue to grow significantly every year. Now, its investors are paid a 1.4% dividend. Its consensus price target used to be at $11.44, but analysts at Morgan Stanley increased it to $12 a share, which represents a 41% increase from its current status.

Remember, mining stocks are great but they aren’t without risks. Mining company stocks shoot up when the precious yellow metal’s price increases, but that also means they fall 3 times faster if the price of gold decreases. In addition, the exchange rate of currencies can significantly affect the profitability of mines because of currency translation adjustments. Investors can find more information on buying gold mining stocks at Bullion Vault. Read up on the advantages and disadvantages of gold mining stocks over physical gold to get an idea on how both investments can affect your portfolio.

IDSM – Industrial Minerals is bouncing today after seemingly finding support after a strong downward move. The stock has moved up 25% in today’s trading on double the daily average volume going into the last hour before the closing bell. IDSM reached support in the .04 area and has rebounded nicely in what may be an attempt to reach the recent highs of Feb. and March. The 52 week high is .10 with average three month daily trading volume of 475,319 shares. No real news as been released from the company other than normal filing requirements. Today’s action is probably only a bounce play s the result of smart traders waiting for established support to be reached before taking positions after the latest pull back from the highs.

BONZ – Bonanza Goldfields Corp. is up 47% with less than two hours in today’s trading session on extremely high volume. BONZ has caught the eye of momentum traders with more continuing to pile on the buy side as the market moves toward the closing bell. Since the beginning of May the company as released an abundance of news which is driving the upward move Opening below the .01 mark today the stock has printed and intraday high of .013 on over 13 million shares traded. The three month daily average is only 67,000 shares which shows how things have quickly changed for BONZ. News announcements have been released from the company four times since May 4, which has turned today’s trading into a “Bonanza” for penny stock traders. Given the amount of news recently and trader interest, penny stock traders would do well to keep BONZ on their watclist of hot penny stocks.

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