Blog : The Hyenas and the Lions
by Peter Leeds on March 5th, 2015
Coming Soon: Newbies Guide to Trading Penny Stocks
Also Below:
- A Quick + Important Fable: (See below)
- Latest Pre-Release Video: Penny Stocks for Dummies
- 5 Steps to Penny Stock Success (Scroll down)
The Hyenas and the Lions
Those of you who have been with us for any length of time know that Peter Leeds Stock Picks consistently reveals the hottest penny stocks on the market. We uncover excellent companies with tremendous upside potential.
Occasionally, we hear from subscribers who have trouble getting in on a new penny stock pick immediately after its release.
In some cases, the shares of the penny stock will open higher than their last closing price (called gaping up) because investors have entered orders at levels above the last trading price. In other cases, prices rise out of reach almost immediately.
While this can happen, many subscribers do not realize that they should not necessarily be trying to get involved early. They should also avoid chasing after rising share prices in penny stocks.
There may be a better strategy, an alternative that does not decrease your ability to make money with the penny stocks we pick, but instead enhances it.
This short article is intended to show you how you could make the most of your Peter Leeds Stock Picks subscription.
The Hyenas
(What Most People Do)
There is sometimes a frenzy to get in on the latest penny stock pick as soon as it comes out. Sometimes the sudden buying pressure can cause a temporary spike in the penny stock, and anxious investors may be in danger of paying inflated prices.
While we never give trading advice, we will say that it may be a foolish strategy to get involved in any initial stampede. In trading, it is never a good idea to be buying when everyone else is.This is especially true when it comes to thinly-traded penny stocks.
In other words, don't line up at a restaurant at 6:00, when you could walk right in and get the best table at 7:30.
In nearly every case, the initial buying stampede fades away, and the penny stock's price comes back down to realistic levels within days.
One of the things that makes our service so special is the excitement we generate among our subscribers whenever we make a new penny stock pick. That excitement even extends outside of our subscriber base to other savvy investors on the net.
The companies we select, emboldened by making the Leeds Analysis cut, are quick to boast about being chosen, through their investor relations and media departments. This excitement and buzz is often reflected in the penny stock's price in the first few days, as word leaks out and more and more investors jump on the action.
However, as a Peter Leeds Stock Picks subscriber, you have two powerful advantages over these other investors:
- First, you have access to our buy and sell price opinions, so you know the exact price points that our research team feels are attractive.
- Second, you know that these price spikes are often temporary.
There is plenty of time to get involved with these incredible companies, at prices that represent better value.
Remember, penny stock profits are not made when you sell, they are made when you buy. You need to get the best buy price that you can. That is way more important than getting a great sell price.
The Lions
(What Successful Peter Leeds Subscribers Do)
Calmer, more effective Peter Leeds subscribers have taken the time to familiarize themselves with the penny stock company, and have done their own due diligence. They can decide if this investment may be right for them, considering their;
- investment strategy;
- other penny stock holdings;
- risk tolerance;
- expectations for the industry;
- if they think an even better Peter Leeds pick may be upcoming
Have the courage to pass on one of our penny stock picks. Impulsive buyers who feel like they need to get in on every single selection, or have to buy in immediately as the penny stock is revealed, usually have trouble profiting in the way that they really could.
A new pick is always just around the corner. Choose among our selections, looking for the penny stock companies which would be best for you.
Have the courage to wait out the price spike. This applies to our penny picks, and to just about any type of investment or negotiation - any price spike is prone to deterioration over time.
A price spike, by its very nature, is an unstable, artificial, technical trend. It usually can not be sustained, except in very short time frames, after which it tries to return to a more stable situation. In most cases, especially in small penny stocks, this means coming back down.
The Best Picks and the Biggest Profits
The greatest testimonials with the biggest gains almost always come from subscribers who waited out any price spike, took at least a few days to read the reports and follow the company, and then got involved when they felt confident. They made sure that no new detrimental information came to light since the time of the profile.
Some traders feel good about making 30% profits trying to play a price spike. However, by taking a longer view, many investors have been enjoying gains of hundreds or thousands of percentage points!
One big trade will always be more rewarding than a dozen small gains.
Our focus and purpose has always been single-minded: to reveal the absolute best penny stocks, when they are at attractive prices.
A buying spike that flares up and fades away does not, in any way, degrade the quality or potential of the underlying company.
Our selections are always great companies, with tremendous upside potential. The most effective Peter Leeds Stock Picks subscribers are making use of this valuable and exciting information. They choose their favorites out of dozens of companies, rather than chasing up prices in a penny stock that they have only just heard about.
5 Steps to Stock Pick Success
- review new penny stock picks when they are released
- watch previous picks which appeal to you, ignore the others
- have patience, and pass on prices and companies that are not highly compelling to you
- be alert for cautionary news or issues that surface AFTER the release of our report
- invest only if you feel confident in a company
You shouldn't feel confident solely because the Peter Leeds team selected the penny stock, but because your own research makes you feel secure in the company's prospects.
A Quick Fable...
...about picking your moments, proceeding with confidence, and getting your results:
(Edited to avoid offending anyone, based on what the fable "really" says)
A lion and his son are standing on a hill, looking down over a group of warthogs.
The son says, "Hey dad, let's run down there and hunt one of those warthogs!"
The lion looks over and says, "No son, let's walk down there and hunt them all."
As of January 2017 we no longer publish the blog and it has been removed from the webiste menu.
You are reading this old blog entry because we still like to reference it. :-)
You are reading this old blog entry because we still like to reference it. :-)
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