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Penny stocks get traded on the Pink Sheets and Over the Counter Bulletin Boards (OTCBB). This makes them risky as both the Pink Sheets as well as the OTCBB are nt regulated as much as the regular stock exchanges like the NYSE. Due to this reason many investors don’t take penny stocks seriously. There is anothe problem with penny stocks, many of them have an illiquid market .

This makes penny stock trading a bit risky. So invest only that money that you can afford to lose. The best way is to only start with something like $200 and grow that amount into a big sum overtime. What this means is that you are not going to add any more amount to that $200 and let it grow ovetime with a series of well planned trades. This way, you will never lose more than $200 of your hard earned money in this venture .

Can you turn $1,000 into $1000,000 investing in penny stocks? That too in just 1 month? You might not be able to do that but that is exactly what one college student with the name of James Connelly did. Now James Connelly was no ordinary college student. He was an Ivy League student majoring in statistics exactly the right subject used in identifying killer penny stocks. So he hit upon a secret statistical formula that could predict when a penny stock was about to make a massive breakout. He used that formula to turn $1,000 into $1000,000 in just 38 trades in 1 month trading penny stocks .

Read this FREE report that shows how James Connelly finds killer Penny Stock! Watch this weird 30 minutes Stock Trading nitty gritty video plus this Stock Market Training FREE video series by Bill Poulos, a veteran trader of many decades and a highly respected trading coach and mentor that shows 4 low risk, high probability profit pockets in any stock chart that can make you rich!

You might want to know something about that statistical formula that was so successful in turning $1K into $1M in just 1 month trading penny stocks. Now, James major research was finding winning stocks. So he spend a lot of time researching volume, resistance, trading patterns and stuff like that that could be used to make predictions about winner stocks .

He ultimately discovered that the Psychological Support Level (PSL) was the key variable that determined the four shared variables of winning stocks. He developed an algorithm that used PSL as the key factor in determing the winners. He applied that to penny stocks and was able to prove practically how anyone can turn $1K into $1M with penny stocks. He is also known as the Stock Prophet !

Why penny stocks? With one big stock at $100 a share, you need $10,000 to buy 100 shares of that stocks. However, microcaps are cheap. So cheap that you can buy hundreds of shares for only a few bucks. So how much you need to start with penny stocks? Let’s say you spot a microcap priced $1 per share. With $100 you can buy 100 shares of that stock. But suppose, you spot a microcap for $0.5 per share. How much you need to buy 100 shares of that stock? Only $50!

Whatever, have you heard the story of John Tempelton who borrowed money to invest in all the penny stocks that he could invest in. He ended up a multi billionaire. Many of the rich and famous investor had used microcaps to jump start their careers. Famous investors like Warren Buffet and George Soros have been investing in microcaps.

He started with only $1,000 and in just 38 trades turned that $1,000 into $1,000,000. How long did he take to turn his $1,000 into $1,000,000? Only 1 month! So with microcaps, you have the potential of becoming an overnight millionaire.

Can you make a 970% gain with a large cap in just 30 minutes? Impossible. This huge gain can take years to materialize. But with microcaps, you can make a 970% gain in a matter of just half an hour. On Jan 25, 2010, just after the market opened the microcap Command Security Corp was already up by 970% in just a matter of 30 minutes.