Try Making These Extraordinary Gains in ExxonMobil
By Brian Hunt, editor, Penny Trends
Saturday, June 13, 2009
Venoco, a tiny "microcap" oil company, has soared 214% since late February. ConocoPhillips, a major U.S. oil producer, is up a fraction as much: 14%. ExxonMobil, the world's largest public oil company, is only up 3%.
The difference comes down to something I heard from legendary commodity investor Rick Rule. Rick is habitually right on everything... He's an extraordinary money manager (and CEO/founder of top commodity-firm Global Resources), so I always sit in on his presentations.
One thing you can count on with a Rick Rule presentation is that he'll hit his audience with an incredibly important question: "Are you an investor? Or are you a trader?"
You see, most folks get the two confused. They think they're long-term buy and hold investors, then they go out and buy speculative assets that should only be held for weeks, months, or at the max, just a few years. They get involved with assets they just aren't prepared to handle. They don't stick with large, safe companies.
Some people have it right, though: They know they are traders. They don't buy Intel or ExxonMobil expecting to make fast gains. They know about stop losses and position sizing. If you're one of these people, it's vital you understand what a microcap stock (aka a "penny stock") is.
"Microcap" means different things to different people. But just remember it's generally a company with a market cap below $500 million. To get an idea of how small this is, realize Google is 272 times bigger than a $500 million stock. ExxonMobil is 726 times larger.
Microcaps are a good friend to the trader because they can make huge moves in short periods of time. It's just far easier for a $200 million company to double or triple in price than it is for a $200 billion company. So the microcap space is a no-brainer place for a trader to operate in. Let me show you some concrete examples…
I've been bullish on oil for the past five months. You could've bought a large oil company to play this idea... but the best trade – the "juice" – was to be found in tiny, microcap oil companies.
So several months ago, my colleague Tom Dyson and I recommended the microcap oil firm Venoco to "beta testing" readers of our trading service Penny Trends. Venoco has tripled their investment since our recommendation. Try making that gain in ExxonMobil or PetroChina.
As I mentioned, it's vital you know what stop losses and intelligent position sizing are before you venture into the microcap world. If you don't – or won't – use these tools, stick with larger, slower stocks.
But if you answer Rick Rule's question with "I'm a trader!" venture here and you can make the biggest, fastest gains in the market.
Good trading,
Brian Hunt
P.S. My co-editor Tom Dyson and I plan to issue at least 10 more Penny Trends recommendations that double in price this year. Some huge trends in commodities and stocks are developing now, and I'm sure we can make a fortune.
If you'd like to see how these trades are made, I recommend you learn about Penny Trends. But hurry. The number of people in this service must be capped to ensure it's useful to our readers. We're almost out of spots. Learn how to reserve your spot here. |
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46%
Increase in the price of unleaded gasoline in the past 10 weeks. Gasoline is now trading at its highest level since October. |
A Government Boondoggle that Can Save You Thousands on Your Taxes
By Dr. Steve Sjuggerud
Friday, June 12, 2009
The U.S. government needs your money now. So it's willing to do something foolish to get your money today, instead of waiting until you retire. The government has created a loophole that allows us to exploit its desperation for cash.
How to Legally Pay Less Tax on Your Fixed-Income Investments
By Tom Dyson
Thursday, June 11, 2009
This anomaly means you collect bigger yields – 10%-12% for the safest preferred stocks – and a guaranteed capital gain...
If You're Looking to Sell Your Treasuries, Here's the Best Time
By Tom Dyson
Wednesday, June 10, 2009
Occasionally, the market loses its efficiency and you can make money from public information. I've found one of those situations in the government bond market.
The Right Amount of Gold Investors Should Own
By Dr. Steve Sjuggerud
Tuesday, June 9, 2009
You don't want to own too little gold and have the purchasing power of all your savings shrink dramatically. You can't afford that. But you don't want to be an end-of-the-world nutcase either.
These Stocks Rise Faster Than Any Other Investment Class in the World
By Tom Dyson
Monday, June 8, 2009
Penny stocks are tiny companies, and small improvements in their business or in their market can result in huge gains in the company's profits and stock price. |
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