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Buying Penny Stocks The Easy Way

Buying penny stocks, although it can be highly profitable, can also be very risky. The amount of risk involved can be significantly lowered by thoroughly researching the stocks you are interested in, but the research can be very difficult and time consuming.

A new computerized system has finally been devised that uses cold, hard, mathematical analysis to greatly reduce the risks and increase the profitability of buying penny stocks, while eliminating most of the work involved. As you might have guessed, this technology comes at a rather steep price, but some creative minds have come up with a way to make it accessible to the small investor while making the process of buying penny stocks simple and easy for even the newest of penny stock traders.

Penny stock investing has big advantages when it comes to large, rapid returns on investment, and the fact that penny stocks are priced low enough for even very small investors to buy stocks and have the opportunity for a diversified portfolio. Because penny stocks have such low values, just a few cents change in the price of the stock can equate to a huge change percentage-wise, and potentially a huge profit to the investor, depending on the amount of the total investment, particularly in comparison to the profits possible with larger value stocks.

For example, if you had $1000.00 to invest, and put it into some stock on the S&P 500 list at a purchase price of $100.00 per share, and it went up by $1.00 per share, your $1000 investment would yield $10.00. But, if you purchased $1000.00 worth of a penny stock at a purchase price of $1.00 and it went up by $1.00 per share to $2.00, your $1000 just became $2000 - a yield of $1000!

Now, by the same token, penny stocks can lose a bunch of money very quickly too, which is one reason why it is important to be very careful when buying penny stocks. Another reason that penny stock investing is risky is because of shady or outright fraudulent practices of some individuals involved in marketing and selling penny stocks. Because companies that issue penny stocks are not required to file financial reports with the SEC, it can be difficult to obtain reliable information to really assess the stock.

In some instances, hard-sell marketing tactics, such as email spam campaigns, paid promoters making cold calls, exaggerated press releases, and "boiler room" operations may be used to lure unwary investors into buying a stock to drive up the price and then the insiders suddenly sell off their stock at the inflated value, leaving the investors holding the bag as the price drops like a rock. As with any investment, the higher the potential return, the higher the risk, but in penny stocks, the relatively high potential for fraud drives the risk even higher than what is seen in other investments that are simply at the whim of market forces.

To overcome the risks, buying penny stocks has traditionally required a large investment of time to research stocks to avoid the scams and predict a relatively good rate of return. A careful penny stock investor could spend quite a bit of time evaluating a single stock. This effort would hopefully pay off in the long-run, but the time required in doing this often made penny stock investing out of the question for part time investors.

Recently, a penny stock buying robot, called "Marl" was created by computer programmers who also understood the intricacies of stock investing. Marl uses mathematical and statistical analysis of trends to predict stocks that will likely increase in value by large percentages. Marl has the obvious advantage that he can do in-depth analyses of many stocks in much less time than a human would take to study just one. Another big advantage of Marl is that he's cold and calculating and maked his pics strictly on mathematical analysis - there's no pesky emotion to get in the way of making sound investment decisions. Of course there's no way to pick a winner every time, but Marl has a much better track record than any human and this greatly reduces the risk of penny stock investing.

The power of this system is amazing, and it has created vast fortunes for those fortunate enough to be able to afford the up-front $28,000 licensing fee that is charged for Marl. Obviously, this price tag puts Marl out of reach of the small investor, but there is an opportunity for small investors to also benefit from Marl. The inventors of Marl produce an extremely affordable e-newsletter with Marl's top penny stock buy for each week. For new investors interested in buyng penny stocks, this might even be better than having their own license to Marl, as it cuts down the investment choices to just one stock per week, rather than having to choose from hundreds of options. This makes penny stock investing a very simple process for even novice investors.

Marl's inventors have stated that they will be limiting the number of newletter subscribers that they allow, and the subscription option may not be available much longer. For the sake of small investors, hopefully they will reconsider and keep the subscriptions list open. For now though, small investors have a big opportunity for assistance in profitably buying penny stocks.