The Promoters

One on of the facts of the penny market is simple promotion. Some people want to believe that stock prices move on their merits alone but the fact is that its simply not true. This is mainly due to the fact that there are thousands of companies that have their shares trading. There is just no way to know about all of them, theres just no way to follow all the venture capital ideas and business plans. 


Still these companies in the early stages of their development are reliant on the price of their stocks to exicute their game plans, for aquistions and fundings. How do these companies try to solve this problem and have their share followed among the thousands of companies competing not only in their fields of business for also for investment dollars.


Promoters in the industry host websites and are paid to tell the stories of the trading issues, it there form of advertising. You can find these websites all over the net some have ads on this page. These promoters begin what is a self fulfilling prophecy the stocks that get volume and movement are ones that people know about its that simple. 


I like to report on stocks that have huge changes in there are volumes because often that means that there is some type of promotion accompanied with positive news releases of some kind. Then I wait for rebounds in the stock price, it has just jumped for .10/shr to .24/shr it is almost certian that some investors will take profits leading that price back down. Once it aproraches the prior trading range is when I would buy and hold for the next move or major shift in the price. There are a hundred different ideas and this is one I have felt comfortable with. I also never invest more then half my available dollars at on time, always leave room to average down.


Say a company has a great idea and is experiencing some success and say I bouhgt it at .05/shr, if my timing isn't perfect and it won't be then if it hits .035/shr its a chance to double my position and lower my cost.


The key to remember is that promotion is good, it gets the story heard, find some good reliable sights and follow some of the issues. Don't pay any mind to their outrageous clams, do your own home work. Write if you need ideas.