The odds are stacked against you on Wall Street. After all, when you open your Ameritrade account with a deposit of a few thousand dollars, you’re competing against multi-billion dollar hedge funds, foreign investment banks, and big institutions like pension funds, all staffed by hundreds or even thousands of MBAs and PhDs. These professionals work literally around the clock, spending millions of man-hours every year, just to make a fraction of 1% on any given trade. They have years of experience, proprietary statistical models, and—most importantly—access to inside information.
Can you beat them? Sure, it’s possible—but for most traders, it isn’t likely… Unless you choose to trade stocks where mammoth size is a detriment, not an advantage: The world of penny stocks!
Of course the “Wall Street industrial complex” wants us to believe penny stocks are a “sucker’s market”—they need us to buy stocks listed on the NYSE, Amex, and NASDAQ through their overpriced brokers. They need us to pay their big institutional firms to manage our money. The mainstream financial media (CNBC, Bloomberg, The Wall Street Journal, etc.) are dependent upon these exchanges, brokers, and institutions for advertising revenue, so they’re more than happy to conduct the propaganda campaign against penny stocks. It only makes sense.
Now the truth is that, yes, there are some scam artists pushing penny stocks to gullible novices who want to “get rich quick.” But this is true of every market everywhere since the dawn of mankind. Fools and money quickly part, and that’s just as true of the penny-stock market as anywhere else—but you’re not a fool are you? It’s fairly easy to see through penny-stock scams, which this book goes into great detail about, but if you’re smart enough to know that anything “too-good-to-be-true” is too good to be true, and you’re willing to invest the necessary time and energy, then there isn’t a better investment class in the world than penny stocks.