Invest In Junior Metals, Energy & Tech Stocks Like A Venture Capitalist

In my previous article we talked about the core traits that successful juniors (penny stocks) have in common.

Today, I would like to talk about how you should invest in these companies so you don’t lose all your money and avoid these stocks for the rest of your life. Why? Because if you play your portfolio correctly these stocks can outperform any other investment type available in the market place.

Since mid-2011, my readership and I have been completely out of the gold, silver and miner sector. We have had a couple quick trades buying and selling leveraged ETFs like NUGT and DUST when gold stocks were oversold or overbought, but other than that, this sector has been dead money.

In fact, just last week readers of my Global Financial Reset trading service bought DUST (3x leveraged inverse gold stock fund). This allows us to take advantage of falling prices and profit from emotional investors. This one trade generated over 43% return in the first two days for investors just this week.

The good news is that this sector (gold, silver and miners prices), the economy, financial system, and negative sentiment are all about to reach a crescendo. The next few months are likely going to be VERY UGLY in terms of price action. Expect wild volatility and likely a washout low in prices. Once we get a washout low to completely cleanse the market I expect a “V” shaped recovery, which will kick start a 3-5 year bull market for gold, silver and mining stocks.

So how do you get involved and profit from this in the best way possible?

The key to making big money in penny stock investing is to investing the same way venture capitalists do. The general rule of thumb is only invest in companies that are capable of generating 6x – 10x times return on investment.

Why? Because the brutal truth is, not every junior company will survive. The best researchers and investors cannot always pick winning stocks 100% of the time so by focusing on companies that have the core traits required to succeed, we can put the odds substantially in your favor so more of these stock provide huge returns. Enough to cover the losses from the trades that didn’t work out, and still generate a profit.

My secret is not to buy all the stocks the average Joe investor is. But rather companies no one knows about yet and have a very exciting growth plan and story. Only then will I get positioned for long term explosive growth.

Don’t get me wrong about this sector. I have been very bearish on it for years and I have been waited for this opportunity to unfold again. We had this happen in 2001-2002, also in 2008-2009, and again later this year if my analysis is correct. I’m not a perma-bull (gold bug), I’m a trader and investor. I don’t really care what the market does, I just follow it and trade accordingly.

Since November 2014 I have been working with a few researchers searching for the next hot junior producing oil, gold, silver, and technology companies to get involved in.

So far I have invested in 5 of these companies, I have another one I plan to buy shares of in the next 1-2 weeks once I meet with the company executive team as part of my due diligence. And over the next 3-5 months, I plan to own 12 of this Lotto Ticket type of investments. If just one of these investment stories come to fruition it will cover the cost of all my other penny stock plays. If more than one is a success I will have a very profitable event in my portfolio in the coming year.

How to Trade Penny Stocks - Conclusion:

In short, keep position sizes small, at least until the sector which the stock is in confirms a market bottom, then you can pyramid up in your winning position.

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