Hey guys, in this video, I want to clear up a very popular misconception that some people have about penny stocks and in more specifically the difference between trading versus investing, okay, many people who don't understand the stock market or don't understand penny stocks or how people make money with penny stocks believe that it's a type of investing and that they need to, you know, put money in a stock and wait six months, like they would in their bank account or a savings account or a CD. But I just want to make this video to kind of clarify that concept, okay. When we're dealing with penny stocks, you can't treat it like an investment. Okay? You have to treat the stock like a commodity, like you're buying and selling a widget or a product, because essentially the goal is to make money off of the price difference in the product.
So trading is the concept of being able to identify an opportunity in the stock market. And my specialty in penny stocks calm is the penny stocks, you know, generally priced between 10 cents and $5 and see an opportunity for when the price is gonna go up and buy before it goes up. So in essence, it's almost like buying antiques or collectibles or anything that you know is going to go up in value. Right? But it's investing is a long term concept. That's not what I want.
I don't want you guys to hold on to the stock. Okay, and if you see my videos, you know that it's clear that trading is getting in and out. Okay? I've done trades at 930 and sold at 931. And that's the type of one you know that's the those are the best types of trades, okay? Because there's no other way that you can make 100 or a couple hundred or a few thousand dollars from in a minute, you know, I don't know Anyway, and I don't think the average person makes that type of money, you know, we usually get, you know, paid an hourly salary, that's maybe two digits, you know, and if you're really successful you get a three digit per hour You know, salary or wage rate.
But with trading, you can make that some in minutes and or hours, you know, the longest time that I held hold trades for is an hour. I don't trade overnight, I don't invest. And so I just wanted to make this video to kind of clear that up. A lot of my members you know, you guys understand this, but this is just a reminder, so that when you have friends or family who kind of get it confused with investing, you can kind of clarify it for them because, you know, trading is a whole different concept and we're not looking to invest in the long term. Okay, more 99% of penny stocks, and the companies are junk, okay, if you look at their financials, you'll understand that they are not very profitable at all. And some operating consistent losses, but for some reason, the market value of these companies are still 50,000,100 million.
But you know, that's finance. That's the stock market for you. We're not bothered with getting into those technicals. All right, all we're doing and all I teach is how to look at opportunities in the stock market, how to analyze penny stocks, and how to buy and sell so that you can make a profit. I don't go into shorting. I mean, I teach you how to short but my strategy and my specialization is going long because I feel that that's the easiest for beginners.
So I just wanted to make this quick video. I hope we can clear up any misconceptions that people have about the difference between trading and investing. And yeah, I hope that it kid this video helps you guys