Posted on 04 February 2012.
There are very few investments that can move more than 100% in a day, but penny stocks gainers are one of the few that are capable of such a feat. The major difficulty involved in taking advantage of such movements is that they are generally over and done with by the time news of the jump trickles out to the general public. Another problem is that many penny stocks gainers are frankly being heavily manipulated by their backers. This is not a problem for free riders who follow along and jump off at the right moment. It can be a severe losing proposition for those who get too greedy and stick around after the party is over. The only solution is to watch all potential penny stock gainers like a hawk and pull the trigger before the rally shows any sign of hesitation. Another important rule is never to carry a position in these stocks overnight.
• On October 27th, 2011, Consolidated Biofuels (CSBF) jumped an astonishing 1000% in a single day. This move from 1/700th of a penny to $0.015 was followed by an equally swift decline back to where it started, followed by another sudden jump back up to $0.01 where it has since leveled off. The stock shows continued massive peaks and valleys not coupled to any specific news event. From July 28, 2011 to January 23, 2012, the stock is up approximately 1900%.
• Megola (MGON.PK) is another stock that nobody has ever heard of. It has been from $0.01 to $0.11 over the past year. That’s a 1000% rise over its low.
While four figure percentage gains are not the norm in even the best penny stocks gainers, they are not available at all in other financial investments.
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