3,400% Return in Under 1 Year – How to Turn a $1,000 Portfolio Into $35,000:
Up until yesterday, Jeff Forehand had been an under-the-radar member of Penny Pro. Achieving a 3,400% return within a year is no small feat. In fact, it’s absolutely incredible. With the S&P 500 returning a measly 5-10% per year on average, Jeff Forehand’s returns blow the market’s performance completely out of the water.
The best part of all is that he started in a position much like many other beginners, with only about $500-1,000 to start trading with. It can be overwhelming to see traders with $50,000-100,000+ portfolios pulling thousands of dollars out of the market each day when all you have is a few hundred dollars to work with. But Jeff’s success brings hope to the “little guy” seeking to make big money in the market.
Overall, Jeff Forehand’s success proves that it’s possible to turn a small account into a much larger one within a relatively short period of time with Penny Stocks.
3 Lessons From Jeff Forehand That Contributed the Most to His Success:
1.) Protect Your Capital
The concept of protecting your portfolio is simple: create trade plans, keep stop losses tight, and exit when things don’t happen as planned. Unfortunately, not many traders have the self-discipline necessary to protect their portfolio in this regard. They take a position and refuse to exit as it goes against them, then they start hoping for the stock to turn around, and before you know it they’re a Bag Holder in a stock that has lost most of it’s value. Cut losses quickly and move on to the next one. If you don’t take unnecessary risks, you’ll live to trade another day – and maybe even achieve a 3,400% return just like Jeff Forehand has when all is said and done.
2.) Aim For Consistent Base Hits
It’s easy to get caught up in the marketing hype of different traders and services boasting huge returns on just one or a few trades. But the reality is that most of the best traders capture consistent profits by locking up modest winners, 5-10% gains over-and-over again. It didn’t take Jeff Forehand just a few trades to achieve his 3,400% return – it took hundreds of small, consistent $100-200 wins, with manageable $50 losses mixed in as well. There will be the occasional home run (25-100%+ gain on a single trade), but it’s the base hits that add up over time. Shooting for home runs on every trade often results in over-allocation and a Destructive Gambler’s Mentality.
3.) Educate Yourself as Much as Possible
Becoming a great trader starts and ends with education – you can never receive enough of it. Understanding concepts surrounding proper portfolio allocation, risk vs. reward, support & resistance levels, and more are all vital to your trading success. Many beginners looking to capture extraordinary returns in the market start off by trying to find a platform that provides a Hot Pick of the Day or something similar, but following those types of services won’t get you very far. Understanding the Why and How behind trades is what it’s all about. That’s why Penny Pro, which provides hundreds of hours of video lessons, webinars, and overall mentorship, is so popular.
Aren’t Penny Stocks Dangerous? Not Entirely. The Benefits of Trading Them:
There’s a common misconception out there that Penny Stocks Are Dangerous, but trading anything is dangerous if you don’t understand it. The truth is that penny stocks do carry some disadvantages, like the fact that they’re not often very good long-term investments, but there are a handful of benefits to trading them as well.
#1 Advantage of Penny Stocks – The Ability to Turn a Small Account Into a Large One:
Trading popular blue-chip stocks like AAPL, IBM, and MSFT have the potential to be great long-term investments, but none of them have the potential to generate a 3,400% return for your portfolio within a year – that’s a fact. In order to find the volatility required to generate such an enormous return, traders must turn to lower-priced penny stocks. These tickers have the potential to run 10, 20, 50, or even 100+ percent in a given day. If you can get yourself on the right side of this volatility, turning $1,000 into $35,000 like Jeff Forehand has is certainly possible.
Penny stocks are developmental, speculative companies – most of which fail over time. But that doesn’t mean there aren’t any short-term opportunities for profit. Real-world success isn’t necessarily required from the companies you trade in, it’s only the expectation of potential success that matters. Riding the momentum caused by hype can lead to highly profitable opportunities. In the end, the penny stock arena can actually be a flexible and profitable environment for traders with relatively small accounts.
Are You Ready to Learn From Successful Penny Stock Trader, Jeff Forehand, Who Achieved a 2,400% Annual Return With Penny Pro?
Written by Matt Thomas
Related Pages:
- What is Penny Pro? Access the Largest Penny Stock Room on Wall Street
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- An Inside Look at How Kyle Dennis Turned $15K into Nearly $2M
- Jeff Williams at Penny Pro Launches a Mentor Service – Penny Pro Elite
Thank you for sharing this story of a 3,400% return trading penny stocks. Given that penny stocks trade on the Pink Sheets or FINRA´s OTC Bulletin Board (OTCBB) and since these companies aren´t required to file with the Securities and Exchange Commission (SEC), it´s difficult to find information to formulate a logical conclusion on whether or not the company is likely to survive let alone thrive. However I have two questions for you. First, how credible is the company´s management? A company´s success depends on the quality of its management, and penny stocks are no different. Is there any way to find out about the management´s track record to determine whether company executives and directors have had any notable successes or failures, regulatory or legal issues and so forth? Second, financials. Although penny stocks generally don´t furnish in-depth financial information, is it possible to evaluate the financial statements the company does release?
Hi Enrique – those are great questions. Management, financials, and other fundamental research components are certainly critical when choosing companies to invest in long-term, but those things aren’t usually the main focus when it comes to trading penny stocks. Taking the time to really dig into the financials of a penny stock are typically futile. The approach within Penny Pro is much more short-term, like day and swing trading strategies for example (1-5 day hold times on average). For these types of trades, technical analysis (candlestick charts, patterns, volume, and various indicators) are of major importance. Catalysts like partnerships with much bigger companies, buyout rumors, and other stories can drive the price of penny stocks drastically in the short-term as well. Things like management and financials just aren’t as important since hold times are relatively short. It’d be different if the horizon was long-term, but it’s extremely difficult and rare to pick out those hidden gem penny stocks that ultimately become massively successful companies. It’s about capitalizing on their volatility within just a few days.
Lots of great tips in this post on advice from Jeff Forehand regarding investing in penny stocks. He is a Penny Pro member who obviously did his homework, followed a system and did not allow emotion to come into play as so many people do, and was willing to take the many small wins over trying to hit the ball out of the park with one trade or investment.
I heard some good advice from my father long ago – you never can go wrong by taking your money off the table and playing with house money. Whether that is playing a game of cards or investing in stocks, this holds true. Calculated risks are necessary, but using a system to know when to hold ’em and when to fold ’em and sticking with that over time wins races and makes you money.
Penny stocks have gotten a bad reputation from movies, experiences of some people not having the discipline, and from the media. There are plenty of people that are making money though from them, as you say the returns are higher, as is the risk. The big stocks do have a place, but the returns are not going to be as high in relatively short periods of time.
My thoughts are that it depends at what stage you are in life when it comes to risk. When you are younger, you can create a more risky portfolio, and as you get older, move to more traditional and less sexy investments. My view is as an older person, now I am 62. This is what I have done.
Good article that people can learn from. The free training you are offering is also helpful, people do need to get educated prior to making any investment. The research and information will help them have success as so many others have had.
I don’t have a complete understanding of trading. It seems to me this is purely dependent on a stroke of luck and that comes by calculating your steps to possibly hit that luck waiting for you. Could it be true that whatever calculation you make for a game of chance are just calculations but they are not a sure hit to success?
There is no guarantee of success on any particular trade. That’s why going “all in” on one trade is a bad idea – it can knock traders out of the game for good. Successful traders realize that there will be losing trades along the way, and there’s nothing wrong with that. Protecting your downside is critical to capital preservation. Overall, it’s about pinpointing a strategy with an edge. Finding a pattern/indicator that generates a particular result more often than not. If a trader capitalizes on those opportunities over time with proper risk management and profit taking, the numbers will ultimately work out in their favor. In the end, it’s not about finding sure winners or never losing on trades, it’s about having an edge that puts the odds in your favor, much like how a casino operates.
Jeff’s advice is on point. It is now up to me if I am disciplined enough to follow. I am going to play it safe by educating myself as much as I can for now. There will be many trading and investment opportunities for me in the future. Will share these lessons to all my friends.
I wish I’d had this article when I started doing some trading. I made the first mistake you’ve outlined about not protecting my capital – I’d bought some stocks and they started to decline. I thought I’d hang on to them and wait until they turned around so that I wouldn’t lose too much. Well, those stocks kept tanking and before I knew it I was left with what was pretty much worthless stock. I should have cut my losses quicker and moved on. I learnt that lesson the hard way, but it was a lesson nonetheless and it’s a mistake I’ll never repeat. I like the idea of aiming for consistent base hits by locking up modest winners – that makes a lot of sense to me. Thanks for these tips.
I believe there is so much to learn from Penny Pro and Jeff Forehand’s success story specifically. The consistency and the discipline of achieving that is worth emulating. The issues for most of us is greed. We want to make a quick buck and that is how we get burned within no time. Jeff is worthy trader who has a lot more wisdom to provide to others on how to turn your “pennies” into tens of thousands to say the least.
Hello,
Thank you for the very informative post. Recently just took into investing over the past year and the learning curve is huge at the beginning. There is so much information to digest when it comes to learning the market and achieving decent financial gains. I would love to really start diving more into penny stocks and become a trader myself as well.
Wow, how amazing to receive such a great return. I’m such a risk averse person, I don’t know that I’d be able to trade speculatively in penny stocks. I will do some more research, because as you say, you need to educate yourself to be successful. It may be something I would like to do in the future.
I like the excellent point you brought up to get consistent base hits. The numbers seem to add up in your favor as you approach things this way in game, and in real investing. Big gains will come with time as the consistent hits keep coming, managing risk with the occasional loss. Especially with penny stocks.
Hi Matt.
I started out with penny stocks myself. I wish I read about the principles described above earlier in my career. I may have been a bag holder a few times less.
What resonates more with me is the part about educating oneself such that you move out of the realm of speculation and in to the real of investment.
Hi,
Wonderful post! My boyfriend started trading penny stocks, and he has found that the best strategies follow the principals shared in your article.
I am especially glad that you mentioned the part about accumulating profit through small gains over a long period of time. I think many people hear penny stocks and think it is some magical witch-craft where all of the sudden you’ll go from $500.00 to $500,000.00 in no time.
Obviously, this isn’t the case, and I think it is so important that people understand this.
Cheers,
Lauren
Hi Lauren – that’s exactly right. In trading, consistency is one of the best attributes to have. It’s not about getting lucky on one big winning trade – it’s about modest, consistent profits that add up over time. It’s much easier to capture ten 10% wins than one 100% win. And aiming for “home runs” every time is risky. There are many gambling tendencies that can trickle into trading if you’re not careful, so those who choose to trade have to be aware of that. The proper mindset, trade plans, and allocation strategy are all critical to every trader’s success.
Hey Matt Thomas, great article you have here. I myself is trying to learn about the stock market and this was really helpful. Love the transparency and the fact that you laid out some of Jeff Forehand’s “Don’ts” early, thanks for doing so. Also, I was wondering if the limit to invest is $1000 or is that the safest amount to invest with?
Hi Brandon. There’s no limit on how much you can invest – I think you’re asking if $1,000 is the minimum. And if so, it all depends on the broker you choose (Etrade, Scottrade, TradeKing, TD Ameritrade, Robinhood, Fidelity, etc.). Some will require you to deposit at least $500-1,000 in order to open the account, but others will not. In choosing a broker, it’s important to consider minimum deposit requirements, sign-up bonuses, commissions & fees, and various tools/support they provide.
The safest amount to trade/invest with would be $0, but in doing so, you’d never see any returns. A lot of Penny Pro members just starting out opt for a Paper Trading approach until they grow their knowledge-base and confidence, which I think is a great idea. Once they feel comfortable enough with their strategy and mindset, they put their real money portfolios into action. It all starts with education and discipline, and the profits follow from there. Take care!