If you read any financial blog or website these days, including the big sites like CNBC will tell you that buying and selling the much hated (and misunderstood) penny stocks can lose you money faster than a slot machine in Vegas.

However, you can win trading penny stocks if you just don’t believe in all the hype.

Friday, March 19th I got an email about a penny stock that I know very well since i’ve traded it successfuly in the past. Lyric Jeans (LYJN.PK) had a few announcements in the press and monsterstox.com was promoting this heavily to their user base which is pretty large. It’s a classic pump and dump that you can use to ride the momentum and cash in on hype.

I bought LYJN.PK at .034 and sold it a day later at .08 for a gain of 235%. The stock then rocketed up to .17 cents the following day and subsequently tanked back down to around .04 cents. During this period, hundreds of millions of shares traded and if you were like me you got in and got out with a profit. If you want to find other ways to stay on top of your finances, then the site Love Money has great tips and articles about money-saving ideas. You can find perceptive facts and fun ideas of how to get the most out of your cash and enjoy life even more.

Of course someone is bound to lose out in this situation but then again, they probably weren’t paying attention to the actual hype behind the momentum and didn’t get out on the way up which is what I always recommend. Always lock in your profits, especially after a double or triple.

Happy Trading!

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