Meme, penny, crypto stocks OH MY! (here’s what you need to know)

The answer to those questions is really up to you [The Trading Letter Logo] Hi Trader, Daryl here to continue with our lessons.  AMC, Bitcoin, GME...they’re all highly volatile but they’ve made people very wealthy. Most of those people are focused on short term turnaround...which isn’t the position of most successful people like you and I.  As a short-term investor (or someone looking to get involved with some big upside) should you even consider investing in such a volatile market as penny stocks or meme stocks?  The answer to those questions is really up to you, but you should understand exactly what penny stocks are before non-investors scare you away from a profitable market. A market where every professional short-term, and day-trading investor is trading. Penny stocks are simply defined as a stock trading at less than $5 per share, meeting minimum standards of trade volume and market capital. The Penny Stock market capital average is between $10-300 million. Now does that sound like pennies to you?  The strongest motivator for my own interest and history of discovering profitable penny stocks, are the numerous privately held companies I only wish I could invest in (but can’t) that are worth far less. I sure don’t tell my friend Ryan, whose family owns a gasket company worth north of $100 million, and if they would let me buy a piece of it, I’d be waiting outside overnight for the opportunity. Several penny stocks trade on the NYSE & NASDAQ and some historically notable ones include Sirius XM (SIRI), Monster Energy (MNST), Xerox (XRX), Kodak (EKDKQ), Alcatel-Lucent (ALU), BlackBerry (BBRY) and Ford (F) or General Motors (GM). All of these companies were at one time or another traded as a penny stock, and thereafter each provided over 1000% return to investors, with some returning over 10,000% in just a few short years.  Many investors find it challenging to discover resources about penny stock trading companies they are interested in purchasing. This is common for the industry and can be discouraging. Personally, this makes investing in this market much easier, as I ONLY invest in companies where I can apply my normal processes of evaluation. This removes much of the chaff throughout the market.  Investing in penny stocks should be no different. This is important because most penny stocks fall into one of two categories. The first, being companies that are on the verge of entering bankruptcy and the second, are newly formed companies entering the marketplace. I almost rarely invest in the ladder, unless they are companies with a global level opportunity. I also use the “Jockey and Horse” model, where in order for me to take on this level of risk, I have to trust the executives of the company and their platform (product/service).  For companies entering bankruptcy, I only invest if I believe they have the potential to recover or be bought-out by another. Once companies enter penny market territory after being a blue-chip stock, there is the likelihood of a buyout, but the question is how low will the stock go, before buyout rumors begin, giving short-term investors their quick return opportunity.  Important...maybe the KEY takeaway from the above: INVESTING in penny stocks is MUCH different than TRADING penny stocks.  Investing is a different animal and a LOT less risky than actively trading penny stocks.  Any questions or want to learn more about me...check out my bio here: LINK TO BIO?  Cheers, Daryl Thompson Editor / TheTradingLetter.com P.S. Tomorrow...do you want to dive into Venture Capital with me? GREAT! This email was sent to {EMAIL} because you subscribed at our website TheTradingLetter.com.   To read all of the risk disclosures, [please visit this page.](   If you no longer wish to receive these emails, you can [unsubscribe](   Traders News Media, LLC PO BOX 02525 Miami, FL, 33102  If you are a bot, please click here[...](