Top 6 Best Penny Stock Books

You can learn trading the best penny stock books and become part of the 90% of traders who win money in the stock market. There are tons of penny stocks books about investing.

The right penny stock book will give you the knowledge and tools that you require to become an incredible investor.

All of these books are about penny stocks, but each book has several aspects and concepts that will help you profit when you’re trading low-priced, speculative shares.

READ More About: How to Use Penny Stock Rumble

Penny Stock for Dummies

Penny Stock for Dummies is such an informational book about penny stock. This is one of my favorite books because I start my trading with the help of this book.

The most important book about trading penny stocks is penny stocks for dummies.

Penny stocks for dummies are the book I wished I had read when I started trading penny stocks at 14 years old and lost all my money within two weeks.

I want to help that 14-year-old version of me, just like I want to help you, and I know that the book will do that.

Penny stocks for dummies is an international bestseller on the shelves from Jacksonville to Japan.
Some might think that because it is in the “for dummies” series, the concepts are basic or rudimentary.

Sure, certain aspects of the book are straightforward and clear, but some sections get into really advanced and complicated topics.

So anybody who reads this book can become an excellent trader in penny stocks.

The Intelligent Investor

This is a great book to discover the principles of investing. Even as a penny stock trader, you will benefit a great deal, even though the focus of this particular book is on much larger Stocks.

When I lost all of my money within two weeks to become a much more successful investor, this book and others like it made all the difference.

How To Make Money In Stocks

I wouldn’t take everything that these books said as gospel truth, but I would pick and choose individual sections and principles illustrated in each book that I felt would benefit as I learned and refined my approach.

For investors who enjoy a step-by-step process, this book could be a great way to begin.

Like all the books mentioned here, I did read this one, and I benefited from it. William O’Neill’s [Can Slim] process is beneficial in many situations.

Do feel like it over-generalizes the very complex and fluid world of investing.

It is perfect for most cases, but there may arise specific unique environments in which the concepts will not bear fruit, in my opinion.

Even so, people will be better for having learned what is discussed in this book.

It is also an essential first step for anyone who’s trying to create their trading system because it will introduce you to the concept of developing and refining your style if you mimic certain parts of the approach discussed in the book.

Fire Your Stock Analyst!

The most important part of this book is also the most complicated.
The discussion of position sizing is critical and is the most outstanding value that this work provides.

The part on position sizing is only one part of what this book discusses, but this book will be well worth a read even if it was only that part. Keep in mind,

if you are a new or beginning investor, the position sizing topic involves a lot of math and complexity to do it properly.

So if you’re looking for the more superficial stuff, this might be a book that you leave for a little while until you’ve read some of the introduction and strategy development books.

One Up On Well Street

This book is timeless, an easy read, and incredibly helpful. You will be a more successful trader, only by taking some time to go through this one.

The concepts in this book are not too complicated for most people but are still incredibly useful.

In other words, one up on Wall Street is the perfect book for most investors, beginners, and more advanced traders alike.

The author, Peter Lynch, is a genuine and straightforward guy. And I don’t just say that because he’s got a great first name.

Rampaging Bulls

Lastly, I have a bonus book for you. I left this one to the end because it probably won’t help most investors trade more effectively.

However, This is about the best penny stock books precisely and the shady side that involves promoters.
This book was around well before “The Wolf of Wall Street” movie came out.
It is a super fun read and was one of my favorite books when I was younger.

It is perfect for taking with you on an airplane or a vacation. Just know that you will not get a lot of direct benefit from it, besides the enjoyable read.

How to Use Penny Stock Rumble

Penny stock Rumble that has chosen a particular stock for we get signed up. Here we cover to talk about some Penny stock Rumble features. This is a Hall of Fame, you all the winners.

READ MORE : Why are Penny Stocks Bad & Best Penny Stock Books

This page is a great place to take a look at all the penny stock Pickers that have one eye gives you a quick breakdown of who Is the winter. What date they won the symbol and the one-day game.

That they pulled off, but their penny stock pick it also is pretty great. Because it gives you the URL lets, you quickly see what their website is.

And if you want to, you can sign up there and Rumble TV, a nice little fun thing. We’re going to enter the email address that you want to sign up with the signup button.

You’re going to go over and check your email. And from there. You’re going to click a link in the email, and it will be taken back to the penny stock Rumble website.

The username is the email address you signed up with, and the password is the auto-generated password provided by the system.

You can always change that later in your profile setting. Click the
the link at the bottom says login here, and you’ll be taken to the login screen.

So I’m logging in here with my credentials. And here we are in the rumble area what we have here. These are all the stocks alphabetical that we have input in the morning every single morning before Market.

We are entering all of these companies that have been chosen by stock-pickers. Here are the Stock Pickers.

You can click on links you can go to the website so you can see what they’re up. You can quickly get more information, headlines, charts, all that good stuff, the great tool.

See who’s the winner, who’s the loser for the day?
What if you want to sort her quickly who’s tiger oil energy down 26? I want to look at the fantastic volume tool here. It’s completely free.

Enter your email address, and you can rock and roll up here on the right corner. We have the Winner’s Circle.

These are the last few days’ pics with the corresponding symbol and the one-day gain for that particular stock. He’s Are All One Day game got a great for him here.

What is a Penny Stock?

Definition of Penny Stock

Penny stock generally would be considered a small-cap. The peoples tend to treat these terms the way, and in a UK context, a small-cap would have a market cap of less than 500 million. Pound, on the other hand. If you to the very small end, we are in the micro-cap.

The territory that would be less than a hundred million pounds as a round number means the pet that the name is misleading because it does not matter its share price.

Explanation of Penny Stock

Penny Stock Upside 

Here is a Penny stock currently trading at only 4 cents per share. If it goes up by just one Penny, which could happen any day now, you will profit by 25%.

And if it hits 10 cents, your profit also increases, and you earn 150%.

Now you think that is great for you. But on the other hand downside of Penny stock.

The downside of Penny stocks

A Penny stock sales pitch does not mention or mentions only passing because there is also colossal downside potential to this Penny stock.

If it goes down by just one penny, you will lose 33% of your money.

And if it goes down and hits the one cent, you will lose your 75% from the four cents you started.

Penny stock is a risky business. A great way how to learn about penny stock trading works?

READ MORE Penny Stock Rumble Best Penny Stock Books

It’s the movie “The Wolf of Wall Street.” Jordan Befort and his team of brokers are selling penny stocks at 50% commission. And they find even more ways to make lots of money.

Here’s Wolf’s penny stock sales pitch on Aerotyne International: “It’s a cutting edge high-tech firm out of the Midwest awaiting imminent patent approval on the next generation of radar detection that has both considerable military and civilian applications.

The key to making money in a situation like this is to position yourself before the event. The only problem you are going to have with this stock is that you didn’t buy more!”

And that the potential of this as-yet-unknown company is probably never going to materialize.

Not all penny stocks are “unknown” companies though, some companies that have turned into penny stocks used to be quite successful. Sears Holdings Corporation became a penny stock.

Why are penny stocks risky?

The first and most significant reason is the lack of information available to the public—it only applies to the OTC penny stocks traded under $1.

Companies listed on the pink sheet are not regulated by the SEC and are not required to make financial documents available to their investors.

So without this documentation such as the 10K, investors cannot find out their cash flow, operating expenses, and whether they generate revenue.

As for the small-cap penny stocks trading above $1 and are listed on the Nasdaq and NYSE, these companies are required by the SEC to file their financial statements, register for offerings and inform investors of essential updates.

So in that sense, the penny stocks above $1 are a little less risky than the real penny stocks on OTCBB.

However, they are still sketchy and easily managed through misinformation and pump and dumps.

Which is the second reason penny stocks of all prices are considered risky.

Many of these penny stock companies release news and pay promoters to pump their share prices up with sensational headlines.

These penny stock news releases often include keywords in titles such as agreements, contracts, advancement, strategic placement, etc. I call sensational key words. because these sketchy penny stock companies take advantage of the fact that most investors

and traders in the market are lazy, and they do not read past the headlines. And of course, the purpose of this PR pump is to drive shares prices up hundreds of percent, as we have seen in past examples like $OPTT, $BPTH, $YRIV and $ABIO.

As the shares hiked up, that’s when insiders of these penny stock companies start to sell and dump millions of their shares on unsuspecting investors.

Sometimes, these penny stock companies will take advantage of the pumped-up share prices to issue offerings and raise more money for their companies.

We’ve seen examples of these pumps and dumps with OTC stocks. These penny stock companies recruit third party online promoters to send out promo emails and publish false articles.

While many will argue that the NASDAQ penny stocks are regulated and less manipulated than the OTC penny stocks, the truth is these sensational press releases are what’s considered “legal” pump and dumps. In the SEC’s eyes, it is indeed legal to release exciting news about the company to investors.

There have been some extreme NASDAQ penny stock manipulation cases like $LFIN and $HUNT, both of these companies released misleading news to drive their share prices up from under $10 to around $100, basically a 1000% ROI scheme.

Both of these companies were investigated by the SEC and delisted from the NASDAQ stock exchange to OTCBB.

Unless it’s blatant insider trading or manipulation like $LFIN and $HUNT stock, these PR pump and dumps from small-cap penny stock companies are just everyday activities in the stock market. So I want to raise awareness for new traders and investors.

Why are Penny Stocks Bad?

When you buy a penny stock or trade penny stocks, you are fishing in a sewer or a drainage ditch. These kinds of companies and their associated stocks. these are the worst companies

They are almost always terrible businesses run by shady operators, and the stocks are highly manipulated. They have fairly small market caps, usually, so they’re effortless to run pump and dump schemes.

If you google buy penny stocks, you’ll see many of these penny stock newsletters where uh fierce investor penny stock millions. I don’t know anything about these companies. I assume they are complete garbage.

But what they will do is they will often try to get all their subscribers to run into a specific penny stock and because these stocks are so small.

It can drive the stock up. But then, as people try to get out, the stock plummet, so there are many unscrupulous.

Operators in the penny stock arena, what I found is that stocks even stocks

under twenty dollars a share do not trend as well as stocks over twenty dollars, so if you’re looking for perfect momentum stocks and high-quality companies. You always want to look at stocks priced above twenty dollars, now even stocks

under ten dollars. They tend to be even worse. They tend to be much more mean-reverting. 

So, for example,

You might have a stock that starts at three dollars it’s trading around three it spikes up to six dollars and then it falls back down to three dollars that’s what I mean-reverting it reverts down to its average trading price now, some people think this might be a profitable trading strategy.

They’re various people who promote this online, but the problem is the risk-reward on shorting penny stocks is just not very good. Because even if you’re able to borrow the shares, which can be difficult to short a stock, you have to borrow the shares from your broker.