ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Doubling Your Money with Low Volume Penny Stocks

Updated on February 9, 2014
Wolfy profile image

Kate is a researcher and writer who holds a Bachelor of Science (B.S.) degree from Sonoma State University in California.

There’s a new method for making money in the stock market that is gaining popularity and notoriety as a genuine and almost full proof strategy. It’s so simple a beginner to the stock market can do it but so profitable that even the big players are interested. It’s called, Low Volume High Profit (LVHP) stock trading. The concept behind this is that buyers locate a stock that has been “bouncing” between two prices consistently for a long period of time due to a low trading volume. Choosing a stock with this track record creates a predictable pattern that can be easily exploited to make larger returns on the investor’s money. Traditionally this has been a method that has been passed around quietly through word of mouth by investors for years now. I have decided to write this article and expose this method after I personally have double my initial investment multiple times using this strategy. Here’s how it works:

Step 1: Find a Stock that "Bounces"

Find a stock that has had a predictable “bouncing” in its share price over at least the last six months. To find a really stable stock that has been up and down a consistent and considerable amount you may have to look at very low prices or “penny” stocks. Here’s an example of a stock of this type (CORR):

As you can see, this stock is very cheap. It’s trading for between 0.0001 per share and 0.0002 per share. That is a 100% difference in price! Look how consistent it is! Keep in mind that this stock may or may not still show a chart like this when you read this article, so please take this as an example of what to look for when locating a stock to buy and not as a recommendation to buy this specific stock.

Step 2: Make a Limit Order to Buy the Stock

Place a limit order (not a market order) for the amount of the stock you want to buy. The reason you want to place the order as a limit order is so that you are guaranteed to buy the stock at the lower of the two prices. So let’s say you want to buy $200 of CORR. You would place your limit order for 2,000,000 shares of CORR at $0.0001 per share. Yes that’s a lot of shares and your stock broker might laugh at you but we’ll see if he laughs at the end of this process. Now be patient, in these stocks that aren’t trading a lot of volume it could take a few weeks to fill the order.

Step 3: Immediately Put in a Limit Sell Order

As soon as you have bought your shares, immediately put a limit sell order in for 5,000,000 shares of CORR at 0.0002. Now again you have to be patient, selling the stock may take just as long as it took to buy it if not a little longer. Keep in mind that professional stock brokers are considered extremely successful if they can produce a return of 20% a year and you are looking at 5 times this amount of return on your money and in a lot less time. So in a month or so you will likely be notified that your stock has sold at your price of 0.0002 on one of these “bounces” that the stock has been doing so consistently and for so long. For the stock itself, nothing unusual has happened here. This low volume stock has been bouncing between these two prices for over a year and a half now.

Now this scenario that I gave you with the $200 of CORR was exactly my first attempt at trying this LVHP method of trading stocks that I had heard about from friends in the stock market business. Because this had been a method that I had heard via word of mouth and never tried myself is why I decided to start with such a small initial investment of $200. I did sell my stocks of CORR about a month later for $400. I can’t describe the thrill you feel the first time you pull off this method of trading and you see that it is possible. I have done it a few times since and have now decided to document this method for others who may find it beneficial. Just remember nothing is a sure thing in the stock market but if you can get the odds stacked in your favor as much as possible, that is when you can make some serious returns on your money.

Comments

    0 of 8192 characters used
    Post Comment

    • Green Lotus profile image

      Hillary 

      7 years ago from Atlanta, GA

      I caught the "promo" for your hub on today's HP contest page and I can't believe I'm the first to comment. This is so intriguing, informative and well presented.

      I rarely do anything that seems "too good to be true", but I must admit you present an interesting challenge..and for a couple of hundred dollars to invest I just might continue my research. Thanks!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)