Penny share investing is extremely profitable, if you know what you’re doing!
You see, I like to analyse companies, big and small, by simply analysing their charts -And only their charts!
You see, penny share companies are more vulnerable and fragile compared to the top blue-chip companies listed on the JSE
(Johannesburg Stock Exchange) main board.
They also have a lot lower liquidity than blue chip shares. This means the charts I was looking at was notoriously unreliable for a technical trader like myself.
I quickly learnt this as the five penny share listed companies that I chose to buy and hold for three years, dropped over 90% of their market
values, leaving me with losses of over R74,000.
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If only I knew about the penny share investing strategy that Francois shared with me on Saturday
On Saturday, the 15th
March 2014, I attended Francois Joubert’s R10,000 Retirement Workshop
It was a complete eye opener for me as I had no clue on how to invest in penny shares the right way.
Francois introduced us to his profitable strategy called, the PowA!
Take the first letter to his strategy “P” for example.
The letter “P”, stands for profits, which is one of the most important cornerstones to the Francois’ penny share strategy.
Here are two of the aspects of the “P” for profits that I learnt from Francois' Penny Share workshop
Aspect #1: Consistency
You should always look for companies that show consistent growth over a number of years.
This will show and prove to you that the companies are worth investing in…
If I looked at the consistent growth of the companies I invested in with penny shares, I wouldn’t have chosen any of them to begin with!
Aspect #2: Don’t overpay for growth
The PE ratio is where you take the share price over the earnings per share of the company.
The higher the ratio, the more growth the company needs to recoup your investment which means, it’s generally more expensive.
Francois highlighted that he only looks for companies with a PE ratio
that suggest you aren’t overpaying for growth.
He refuses to buy shares that are grossly overvalued because the last thing he’d want to do is, over pay for a company’s share price.
Here’s how you can learn to profit from penny shares for yourself thanks to Francois Joubert's Powa! strategy
The “P” of the PowA! strategy
is just one part of Francois Joubert's
key investment criterion. His strategy also reveals how to avoid penny shares that become suspended or ones with management that just doesn’t care about a small investor like you.
If I’d used these I wouldn’t have had half the heartache I had when I invested in penny shares years ago.
So if you’d like to find out more about this penny share strategy and how Francois uses it to find the best penny shares for you, follow this link.
“Wisdom Yields Wealth”