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John Hanlin is an Independent Investment Consultant specializing in high yield, low risk investments secured by real estate. He is a seasoned investor of over 25 years, manages the investors' website: www.JohnHanlin.com and is the author of "The 7-Step Retirement Investments Planning Guide" and... More
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  • Penny Stocks: How to Become a Millionaire on a $100 Investment 4 comments
    Mar 2, 2011 3:11 PM
    Today, in my opinion, other than the lottery -- there is no other investment that provides the potential to become a millionaire faster or for as little money as buying penny stocks.



    NOTE: Be sure to read my companion blog here on SeekingAlpha: "Penny Stock Landmines to Watch Out For".


    What is a Penny Stock?

    In layman's terms, this is a common stock that trades for less than $5 per share and typically is traded on the 'over the counter' (OTC) or outside of the major stock exchanges such as the NYSE or NASDAQ. A great number of penny stocks trade for well under $1 and quite a few actually trade for fractions of one cent!

    Many new businesses get their start: as 'penny stock companies'.

    In order to raise capital to get their business off the ground, a new company will offer common shares of stock in their business. Because they are unknown and unproven, they are usually viewed by investors as being very risky. So, their initial offering can literally be valued at well under one penny per share.



    How to Become a Millionaire on a $100 Investment - Buying Penny Stocks

    1. Buy one million shares of penny stocks at $0.0001 per share. (Cost = $100)

    2. The company really takes off and their stock price increases to $1 per share.

    3. Your one million shares is now worth ONE MILLION DOLLARS!

    Getting Started Buying Penny Stocks:

    First of all, besides some money to invest, you're going to need either a stock broker or an online trading account. I use Scottrade.com  but there are many others to choose from like E*Trade, Charles Schwab, etc.

    These online traders will require a minimum deposit
    to get started and will charge you a small commission when you trade stocks (either buying or selling).

    Once your account is set up and you've deposited some money, you next need to decide what stocks you want to buy.

    All you need to do to find ideas on stocks to buy is to Google the terms "penny stocks" or "hot penny stocks" and you'll find dozens of sites providing penny stock tips. Here's a link that I use frequently: http://www.thehotpennystocks.com/

    Once you've picked a penny stock or two to buy, you're all set.

    The online trading system will ask you for the company name or its stock symbol. Then, you need to decide how many shares you wish to buy, etc. Basically, they lead you right through it.

    Those are the basics!

    Personally, I didn't read any books beforehand -- I just waded in and learned as I went. I didn't even have the weak advice that I'm providing you with!

    If you would like to learn more, here's a link to a FREE online book by penny stocks guru Peter Leeds titled "Understanding Penny Stocks":  http://www.pennystocks.org/



    I should caution you on a couple of things:


    1. This is like Vegas or Atlantic City -- unless you can afford to lose the money, don't play the game.


    2. This can be addicting! Like I said, it's basically gambling.

    Good luck!

    AUTHOR'S BIO:
    John Hanlin is an Independent Investment Consultant specializing in high yield, low risk investments secured by real estate and is a seasoned investor of over 25 years. John is the owner of the investors' website www.JohnHanlin.com & author of "The 7-Step Retirement Investments Planning Guide" (available at www.LazymanCompany.com)


     


    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: John Hanlin is an active penny stock investor.
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  • chief1974
    , contributor
    Comments (3) | Send Message
     
    BUY MARIJUANA STOCKS BEFORE THEY FLY!! (MJNA)< (CBIS)<(HEMP) etc! Now the OTHER GREEN is GREEN ENERGY! Your tax payer dollars are already funding these projects! GET IN NOW all electric cars need BATTERIES!!!! BUY (ZOLT) BUY anything to do with BATTERIES! People It's time ! Make your nest egg grow for your retirement! DO YOUR REASEARCH! its now or never will you be eating canned tuna for dinner or STEAK!
    17 Jan 2013, 04:37 AM Reply Like
  • chief1974
    , contributor
    Comments (3) | Send Message
     
    I have been trading penny stocks for only a few weeks! I was blown away by medbox inc, its soared from $.03-204!!! It made people instant millionaires! I was not buying stocks 3 months ago (wish I was) but the TWO BIG things in this country are GREEN ENERGY and MEDICAL MARIJUANA!! Lets face it people marijuana is a legit medication and we are a liberal country! For thousands of years we have been using it for its medicinal properties and for rope, paper,oil etc! Now think about this, The USA is in a fiscal crisis, we import everything export nothing! Tax is on the rise unemployement skyrockets etc. THE FINANTIAL GAIN ON LEGAL MARIJUANA WILL SAVE THIS COUNTRY ALONE! 18 states have now made it legal! LEGALIZED REGULATED AND TAXED! A WIN WIN! This is your chance to buy in at a super low and watch it FLY shy high! EXAMPLES (PHOT), MJNA, CBIS, HEMP, pennies a share! Now with GREEN ENERGY your president is spending your tax payer Dollars on developing Green products! ELECTRIC CARS NEED BATTERIES!! WIND ENERGY! Get my drift BUY (ZOLT) Buy now at the ground floor the sky is the limit do your reasearch. People its now or never! ITS YOUR FUTURE!!!
    17 Jan 2013, 04:37 AM Reply Like
  • Peter Leeds
    , contributor
    Comments (4) | Send Message
     
    This is Peter Leeds here author of the book mentioned above. I would caution all investors interested in penny stocks to start slow and learn first, before actually investing real money. Penny stocks can move so fast that there is no rush to get in - instead, learn the ropes by paper trading (imaginary money in real stocks) and once you're ready, take the plunge!
    27 Mar 2013, 06:55 PM Reply Like
  • Peter Leeds
    , contributor
    Comments (4) | Send Message
     
    This is Peter Leeds, the author of the penny stock book mentioned above. With penny stocks, I'd suggest that investors don't jump in right away, but instead learn the ropes. Paper trade first (no risk, no money needed), then once you are comfortable get involved with real cash. Penny stocks can move so fast that there should be no rush... Great article by the way. Peter
    27 Mar 2013, 06:56 PM Reply Like
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