The penny stock market is a cruel animal. It can take away all your money in an instant. It can also turn a small investment into an amazing sum of money.
Last month Pennystockguru Subscriber turned $199 into $7,000 in the span of a few hours trading CMGR. CMGR, as I have noted before, is not a stock you want to hold, but it shows how even the worst stocks can make you a lot of money. The chart above show's the day Boxer made his 3,500% gain and the previous 3 months of CMGR trade.
For Boxer and the few out there who successfully traded CMGR for a huge profit, there are many out there who did just the opposite and are sitting on huge losses. I imagine there are people still buying this stock in the hopes of landing a 3,500% gain. I hate to break the news to you, the odds are not in your favor. If you had bought CMGR at anytime outside that one day phenomenon you would have lost a lot of money.
Look at this chart after CMGR went from sub $.01 to $.24.
That is a scary chart and the reason why you should never hold these stocks for too long. Tkae your profits or cut your losses.
There is a very small window with most penny stocks. Experience, research, and luck will help you find that window, for the rest of the retail traders out there, you might as well be throwing your money out that window. Which is why you should never invest with money you can not afford to lose.
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