If you ever begin to start trading penny stocks try to remember this one very important rule. Penny stock quality is much more important than penny stocks quantity. There are a million penny stock sites out there (probably more) and maybe most of them focus on quantity. We can understand the desire to have a lot of quantity because it makes it seem like there is a lot to choose from. Certainly people want to have a lot to choose from in the penny stock universe and this is not necessarily a bad thing. But it is only those finely tuned minds that are able to filter out the quality penny stocks from the quantity that stand a better chance at this game. To be honest there is not that much quality out there in penny stock land. One really has to search long and hard to find it and also recognize the simple fact that there are probably only a small handful of true quality penny stock setups in any given year. It may be more than a handful actually. Maybe it is about 10 to 20 true quality penny stock setups. In our view, this should probably be the most important task that any potential penny stock investor should embark on. Making the definite decision to only focus on finding the absolute number 1 rated penny stock setups instead of just the hottest recent big mover that seems like its should go up. I have been trading penny stocks for about 10 years now off and on and I can tell you with zero doubt that it is extremely difficult to trade penny stocks with a consistent winning record year after year. I don’t mean to sound discouraging, but in my view it is a simple truth. So the question is how can one build up better odds over time and consistently win in the penny stock sector year after year ? To me, this is the most important question one must ponder if they are looking to participate in this sector. The penny stock sector can offer potentially enormous rewards if a proper strategy is developed to win in this sector. It is the desire and definite chief aim of this penny stock site to attempt to come up with a long term winning penny stock trading strategy. We do not claim to know all the rules or secrets but we do feel we have a keen eye towards what makes for the best penny stock setups. The average penny stock can provide to traders 20 to 100% gains on a daily, weekly or multi week basis. It is very easy to forget the power of compound gains when trading penny stocks. Did you know that if you were to compound a starting capital of $500 at a 50% rate that it would grow to $1,108,418.91 after just 19 trades? But this assumes that after each trade you would re invest your entire proceeds into the next trade which would expose oneself to the highest possible risk with each trade. This is not advised but I point this compounding example to show how even 30% to 50% returns achieved consistently enough times can lead to massive wealth building. But the issue is how do you find the penny stocks that are going to return 30 to 50% on a consistent basis? The answer is that it depends on the penny stock price chart. Either the penny stock has all the ‘right stuff’ in the chart or it doesn’t. We feel very strongly here at penny stocks penny stocks dot com that when we see a superb number 1 rated penny stock chart setup, it jumps out at us boldly and really makes a statement. A problem that occurs is partly the result of their being so many penny stocks and so many potential setups. It can be easy to get suckered into the less than perfect setups and then suffer bad draw down and losses. But think about this for a moment. Imagine if there was a penny stock trading strategy that on an annual basis tries to only find the number 1 rated penny stock setups a few times a year. Perhaps those setups would return 30 to 100% returns. And then imagine if you could consistently achieve these returns year after year. It goes without saying that if done successfully, a large amount of compounding of capital could be achieved. But it is perhaps more easily said than actually done. The ability to identify and participate in only the strongest possible penny stock setups on an annual basis is quite a challenge. It requires the ability to scan through hundreds or thousands of penny stocks and then having the foresight to only participate in those setups that are deemed number 1 rated. Probably the hardest part of such a strategy is resisting the temptation to jump into less than near perfect penny stock setups. Well you now have an idea about our frame of mind here at penny stock penny stocks dot come. Now lets get to work.