Originally Posted by Disqplay

I have to admit the stocks you listed are definitely not penny stocks infact most look like well established firms. This just goes to prove that money can be had by picking stocks that are rotating into vogue with the investing public no matter what the cost per share. The big problem I see with picking stock listed in Business week is that they are in the top 50 performers because the move they have already made put them on the list. The object of the expirement is to attempt to make as much money as you can in a one year period with the ultimate goal of making 1 million dollars in a year. I believe this could be done but would have to be done compounding your investement dollars and picking the correct stock before the general public see the big move and riding that move for a quick return on your investment as the general public jump on board a soaring stock out of greed. The question then is when to get out of the stock the expirement is trying to obtain a 10% gain on the stock quickly then get out of it before it retraces. I find this not so easy to accomplish so I set my goal as 3% gain. Now if you go back and look at the trades I have made you will see that some of them have attained the 10% gains and others are only in the 2 to 5% range. Be that as it may so far in the 3 months I have been in the expirement I have increased my investment dollars by approximately 200 %.
So as you can see taking your time and selecting the correct stocks can be profitable to the average investor. The point in picking the penny stock in the beginning is that you are trying to get the most bang for the buck on the limited investment dollars you have in your account. It should be noted that as the account grows in size the use of penny stocks would become more difficult because the size of your portfolio would then cause the stock to move because of the investment you would be making. This could hurt you in the long run because you may not get anyone else to invest in a sub 10 cent stock if you bought say 500,000 shares of a stock that has and average daily volume of say only a few hundred thousand shares. At this point I think stock selection would then have to be based on dollars invested in the stock instead of stricly volume of shares traded. So this would look like 5,000,000 dollars invested as and average daily dollar amount so that your 1% or less of this dollar amount would not attract to much attention. So that the effort you put into analyzing your stock pick has a good chance to suceeding.