subject: Imagine Investing $200 Into Penny Stocks And Making $1 Million! [print this page] Question is can you turn $200 into $1 MillionQuestion is can you turn $200 into $1 Million. The answer is yes, it is very much possible to turn $200 into $1 Million by investing in scientifically selected stocks.
Here's how an ordinary investor can cash on huge profits! You must be thinking how do you find such stocks that can make you rich. You can do this by following a 4 step investing system.
You need to follow a systematic approach in your stock selection. First, you need to be very clear about the market sentiment. You need to know whether the market is bullish or bearish. You usually go long in a bullish market and go short in a bearish market. But how do you measure the market sentiment. Most of the stock exchanges in the world have a stock index associated with them. For example, NYSE has the Dow Jones, London Stock Exchange has the FTSE 100 whereas the Paris Stock Exchange has the CAC. These stock indexes are used to measure the market sentiment. For example, if the Dow Jones Index rises by a few percentage points, NYSE is considered to be in a bullish mood.
Let's make it clear with an example, Dow Jone Industrial Average (DJIA) is a price weighted stock index based on only 30 stocks. It only shows the performance of these 30 stocks not the New York Stock Exchange, but you will still hear frequently on CNBC and other financial news channels, analyst talking about DJIA going up or down.
S&P 500 Stock Index is considered to be a barometer of the US Economy. It is value weighted and based on 500 stocks listed on NYSE, NASDAQ, AMEX and other US Stock Exchanges. You must be thinking that S&P 500 is a good measure of the US market sentiment. To tell you the truth it's not either. It is heavily influenced by the 50 stocks in it and half of it's movement is just based on these 50 stocks.
Market sentiment can only be measured by knowing the internal strenght of the stock market. Infact, there are two stock market. One is the most obvious, the external stock market that is infront of your eyes and you can get a feel of it by taking a look at the Stock Indexes based on the stocks listed in thes stock market. But infact, there is another internal stock market hidden to most of the people that actually reflects what the market is thinking. If you can discover that internal stock market and drill it down to individual stocks in different weak and strong industry sectors, you have found your super stocks.These super stocks will have the potential of skyrocketing in the next few months.
Once, you have identified the super stocks, you can build your portfolio in such a manner that your risk is hedged and your profits are maximized. So if you have a system that can give you the best stocks and you know how to build your portfolio with those stocks, you can get incredibly rich without ever doing anything. This is the essence of investing! Follow this system and you can turn $200 into $1 Million over and over again!
by: Ahmad Hassam
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