With the economy looking so bad right now, lots of people are looking for ways to make extra money.
One way that people have been trying for years is investing in the stock market.
While most people consider stocks to be long-term investments and are meant to pay off over the course of a life time, there is a second group of people who are looking to make short-term profits from stock trading.
One of the best ways you can extract short-term profits from the stock market is through the trading of penny stocks.
A penny stock is defined as any stock which is currently trading for less than five dollars per share.
How can penny stocks be profitable, you ask? The answer is that they can be extremely profitable because of a principle called leverage.
When you price of a stock is low, you are able to buy many share of that stock.
Also, a stock which is priced at 50 cents can easily double literally overnight.
This can result in huge profits if you pick the right stocks to invest in.
Unfortunately, it is very difficult to know which stocks are going to increase in value in the near future.
Just as the value of a penny stock can double overnight, it can just as easily fall in half overnight as well.
I have found that the best way to pick which penny stocks to invest in is to let a piece of software or a stock trading robot analyze the stocks for me and choose the ones most likely to increase in value.
A stock trading robot is able to perform complex mathematical calculations and trend analysis, as well as examine hundreds of stocks in a short amount of time.
A human could never analyze stocks as quickly or accurately as a human, and this is why you will be able to see much bigger profits if you decide to invest in some stock analysis software.