Tim Grittani (left) began trading with $1,500 of his savings and within three years had turned it in to his first $1 million. Since then his portfolio has continued to grow with a value now over $2.7 million.
How did he do this? He went after penny stocks.
Tim is the first to admit that trading in the penny stocks (shares worth less than $1) is not for everyone and it does have its risks. For those looking to build long term, solid investments now would be the time to stop reading.
There are no guarantees in the penny stocks, but Tim has outlined his methods for success:
- He traded every single day for 3 years spending hours in front of the computer screen
- It was a very slow, day-to-day process
- It's all about timing. Tim buys and sells stocks quickly, sometimes within a matter of minutes
- Penny stocks are volatile; it's all about staying ahead of the crowd
- It's mostly a market for those who are prepared to gamble
Tim has been able to make his biggest wins on 'pump-and-dump schemes' where scammers will try to artificially boost the share price and then sell their shares to cash in while other investors take a big hit. He's been able to correctly recognise when this is happening meaning he can get in and out quickly before the shares crash.
Penny stocks do come with a warning as it's very easy to risk it all and lose it all on these shares. At one point Tim was down to his last $200. It's definitely not the kind of investing you want to do with your retirement fund, but if executed correctly can bring in profitable results quickly.
Original story & image from CNN Money