In February Money Philosophy thought it would be a good time to get back into the stock picking game after having been out of it for a few years. He was immediately drawn to stocks such as C & GM which had taken a huge hit since the stock market fell through the floor in September of 2008. These stocks looked like they were rebounding and he was thrilled about the possibility that they may eventually reach their 52 week highs.
The GM and C picks were extremely successful and that got him interested in looking for other stocks similar to them. He ended up coming across a couple of penny stocks, LJPC and CTIC, that looked like they may break through in a similar way. These stocks looked like bigger risks but they also seemed to have even greater potential for reward.
That ended up being the case as both CTIC and LJPC ended up being huge winners. They were even bigger winners than GM & C.
He thought that he may really be onto something with the way he was selecting these stock picks so he decided to try and make a stock screen screen which would find more stock picks like them right at the moment before they were about to “pop” with big gains.
The reason I’m writing this blog post right now is because his first stock pick with this new screen reached a high 40% above it’s open today and that certainly impressed the heck out of me. Obviously my imagination is off and running with the huge gains I could make by following his advice.
I definitely don’t expect every stock pick he or anyone else makes to have this kind of gain. That’s impossible. It’s also key to remember that a gain isn’t “official” until you actually sell the stock. Deciding when to get out is equally as important as deciding when to get in. The really cool thing is that he also makes a post on his blog (and on Twitter) when he sells his holdings.
He does not share the precise way he screens for these penny stocks as I guess he’s too selfish to share all of his trading secrets but he definitely shares more about what he’s actually doing on the market than most so called “gurus.”
He does not suggest that anyone trade his penny stock picks. There’s actually nothing to gain from that.
While I understand wanting to sign up for The Day Trading Robot or The Forex Autopilot System, I honestly think I’ll have better gains just by doing what he’s doing. And the really awesome thing is that it’s completely free.
Consider this: It’s definitely a good idea to “trade on paper” before you start making trades with real money when starting up a new strategy.