Anyone who has done research on penny stocks in the last year has definitely heard of Michael Cohen and his company named DoublingStocks. His name and company is synonymous with promoting penny stock companies. He even has his own stock picking robot named Marl. In fact, a lot of the penny stocks he promotes makes gains of over 100% in a day or less. The reason for this is the sheer number of followers he has.

For those of you who do not know what a promoted stock is, allow me to explain. Companies that trade on the smaller boards, such as the pink sheets or the OTC, are usually small companies that fit the following profile. They may have only a few employees, limited capital, and their stock prices are usually .01 to $2.00 per share. In other words, they are classified as penny stocks. They generally do not get the media exposure a larger company, such as Microsoft, Dell or General Electric, would receive on a daily basis. Therefore, when they have a major breakthrough in their particular type of business, they have to get the word out to the public.

Let’s say that ABCD company just found a cure for baldness. If ABCD companys’ stock prices were trading at .25 per share, it is easy to see how their price per share would double or triple in just a few days. But it’s not likely that any of the major news channels would cover ABCD company, therefore they would have a potential gold mine and no one would know about it. That’s where a penny stock promotion company, such as DoublingStocks, comes to their rescue. The promotion company would alert the news media, as well as sending out ten of thousands of emails alerting potential stock buyers of the latest breaking news. The price of the stock could skyrocket within a few days. Now, you can see how important the job of a penny stock promoter can be.

Some people would view this as a pump and dump scheme, and that is why so many traditional traders say that DoublingStocks is a scam. But, if you are capable of buying and selling at the correct entry points, you can make a ton of money buying these promoted penny stocks. The secret is to refrain from getting greedy. You should set a goal for the percentage of your investment you are willing to lose and stick to it. At the same time, you should set your profit goals and decide ahead of time exactly when you are going to sell your stock. Keep in mind, when a stock price shoots straight up, it will fall down twice as fast. Trading the pennies is not a place to second guess yourself and you should not let emotions get in the way. If you follow these simple guidelines, you should be very safe in the treacherous waters of the penny stock market.

More On : Live Share Market Updates