While watching videos on YouTube is a fun way to learn about penny stocks others prefer to read books. While there are hundreds of books on trading traditional stocks, there aren’t many dedicated to teaching beginners how to profit from the dangerous world of penny stocks.
1. Penny Stocks for Dummies
Penny stock veteran and all-round nice guy, Peter Leeds teamed up with Wiley to launch the book. Originally the book was released in 2013, but a second edition was released in 2016 to keep up to date with the market. It provides a great insight for penny stock beginners with no previous knowledge of trading – advising investors on how to avoid scams, read financial reports and perform basic technical analysis.
The book talks about how to identify and analyze penny stocks to make long-term investments rather than day trading. He goes through multiple examples of small companies that have exploded in price, making returns over 100% for lucky early investors. The strategy of long-term investing isn’t for everyone though as it requires a lot of patience but is more suitable for the average person who has a full-time job.
2. The Complete Penny Stock Course
Authored by Jamil Ben Alluch, the book provides a complete breakdown on everything needed to start trading low-priced stocks. Perfect for inexperienced traders looking for a roadmap to go from newbie to intermediate day trader without spending hundreds of hours watching video lessons. J
Jamil basically takes Timothy Sykes’ lessons and breaks it down into a digestible form so people don’t have to rewatch hours of video lessons. The main criticism from customers was some of the pictures were hard to read and pages were falling out. The content is good, it’s just that the book quality is poor. But for $29, the book is a bargain compared to the amount of useful information available.
Jamil is a former challenge student of Sykes and is currently the Chief Technology Officer at StocksToTrade. This is probably why a whole chapter is dedicated to using the software.
3. An American Hedge Fund
The controversial Tim Sykes details his journey into day trading, revealing how he turned $12,000 into over $1.65 million. He writes about his unsuccessful attempt at running a hedge fund which teaches the importance of risk management and not getting caught up in your own success.
While his story is an entertaining read, it doesn’t provide much education in regards to learning how to trade and doesn’t discuss trading strategies in much depth. Sykes released ‘An American Hedge Fund’ for free online and can be downloaded as a PDF to your computer or kindle! Perfect reading material for aspiring stock traders with plenty of free time.
4. Invest in Penny Stocks: A Guide to Profitable Trading
Another stock trading book released by Peter Leeds in 2011. The book’s content is very similar to ‘Penny Stocks for Dummies’. The one thing I don’t like is how Leeds continually promotes his newsletter to readers throughout. Even if only 1% of readers end up paying for his subscription, Leeds will still make a hefty profit. While there’s nothing wrong with making money at least be more subtle about promoting your own services!
These are my top four picks, the rest of the other eBooks I found online were very low quality! If you have any recommendations please leave them in the comment section!